In a bold condemnation of the European Central Bank’s latest report, well-known analyst Tuur Demeester has described the ECB’s new publication as a “true declaration of war” against Bitcoin. The report, titled “The Distributional Consequences of Bitcoin,” written by Ulrich Bindseil and Jürgen Schaaf, has sparked intense reactions from the BTC community.
The ECB’s document questions the fundamental basis of Bitcoin by asserting that its value increase does not enhance the economy’s productive capacity. Instead, it argues that a prolonged rise in BTC’s price results in redistributive effects, wherein the consumption and wealth of early holders may lead to the impoverishment of non-holders and late adopters.
The authors state, “If the price of Bitcoin rises for good, the existence of Bitcoin impoverishes both non-holders and latecomers,” underlining that this consequence is unavoidable, independent of poor trading decisions or holding tactics.
Is a Hostile Engagement Against Bitcoin Approaching?
Tuur Demeester, a seasoned BTC analyst and board member at the Texas Bitcoin Foundation, has led the charge in this backlash, branding the ECB’s report a “true declaration of war” against Bitcoin. Through X, he voiced his profound concerns about the ECB’s position. “This new paper is a true declaration of war: the ECB claims that early Bitcoin adopters extract economic value from latecomers. I firmly believe authorities will leverage this luddite argument to impose severe taxes or restrictions,” Demeester asserts.
He expands on his fears, pointing to the risk of stringent regulatory measures designed to suppress BTC’s growth and acceptance. “Instead of acknowledging Bitcoin as a transformative tech shift like petroleum and the internet, the authors present the overtly luddite argument that ‘early adopters’ … ‘enhance their real wealth and consumption’ … ‘at the expense of [latecomers]’,” he elaborates.
Demeester did not shy away from criticizing the ECB’s intentions and the implications of their conclusions. “They brazenly advocate for legislation … ‘to prevent Bitcoin prices from rising or to see Bitcoin disappear entirely’ to avoid ‘the division of society’.” He condemns the ECB for what he perceives as an aggressive and unwarranted approach to regulating BTC, arguing that such actions reflect a broader agenda to undermine decentralized financial systems.
“In all my years observing the Bitcoin landscape, this is unquestionably the most aggressive paper produced by authorities. The gloves have come off. It’s apparent that these central bank economists now regard Bitcoin as an existential danger, to be combated by any means necessary,” Demeester cautions.
Elaborating on his worries, Demeester highlights the potential long-term ramifications of the ECB’s viewpoint. “Many of us could see this coming: Bitcoin emerging as a significant political divisive point in national and international elections. Well, here it is. This means that we HODLers must act to ensure that governments uphold our fundamental right to property ownership.”
He positions the scenario not merely as a regulatory hurdle but as a fundamental clash of ideologies. “And no, this won’t be a conflict between the wealthy and the poor. Instead, it will represent a historic confrontation between those advocating for natural individual rights and those adhering to the failed ideologies of collectivism and central planning.”
Marc van der Chijs, a Dutch global investor, resonates with Demeester’s concerns, pointing out a series of regulatory actions across Europe that are becoming increasingly hostile towards investors. “It appears Europe is gearing up for a war on Bitcoiners: steeper capital gains taxes on BTC in Italy, a suggested exit tax in The Netherlands, no mortgage in the UK for those who made their money in crypto (personal experience!), and now the ECB is informing no-coiners that Bitcoiners are rendering them poor,” van der Chijs reflects.
He critiques the ECB’s portrayal of early adopters, arguing that their achievements stem from strategic investment and risk tolerance rather than any malicious intent to harm others. “That last point is truly astounding: early adopters were simply smarter (or dedicated more time) and willing to take greater risks. Now they are being demonized for it. It’s very alarming that these words are coming from the ECB; it sounds more like the Chinese Communist Bank to me,” he remarks.
Van der Chijs also expresses concern over the evolving regulatory landscape, noting that if BTC’s price experiences significant growth, there could be an escalation of punitive actions against investors. “The Overton window is rapidly shifting against Bitcoiners (and against affluent individuals in general). I’ve heard from several people in The Netherlands who hold Bitcoin that they are increasingly apprehensive about changing regulations. If Bitcoin should double or triple in 2025, I wouldn’t be surprised to see more politicians align against BTC and attempt to excessively tax it. Stay alert!” he warns.
In reaction to the ECB’s provocative publication, Dennis Porter, CEO and co-founder of Satoshi Act Fund, has announced plans to develop a comprehensive rebuttal. Initially, Porter remarked, “The anti-Bitcoin ECB report will soon be countered with a complete academic response. A new paper is on the way. If you’re interested in contributing, reach out. Or tag those you think we should involve.”
Demonstrating swift action, Porter later confirmed, “My team has started crafting the official response to the ECB paper. We aim to have a draft completed by today or tomorrow at the latest. If you wish to contribute, please get in touch. We plan to act very quickly,” and further updated, “We’ve finished the ECB rebuttal draft — several co-authors have now begun contributing — we have an open call for contributors in place for the next 24 hours.”
At press time, BTC was trading at $69,005.
Featured image created with DALL.E, chart from TradingView.com
