cryptojournalist
New technologies typically experience price swings as they evolve. Like many early-stage innovations, Bitcoin is still establishing itself. Its value as a store of wealth and the expanding network of users are important aspects that critics tend to overlook.
Rudd responded to the European Central Bank’s (ECB) critique of Bitcoin’s wealth distribution by highlighting a bigger issue: inflation in traditional financial systems. He pointed out the steady decline in the US dollar’s purchasing power since 2000. Inflation eats away at wealth over time, something Bitcoin is designed to resist due to its limited supply.
Rudd also raised concerns about a potential conflict of interest in the ECB’s analysis. The authors are involved in the development of a Central Bank Digital Currency (CBDC), or digital euro, which could explain their portrayal of Bitcoin as a speculative and unstable asset. This raises the question of whether they may be biased in order to promote their own project.
Beyond this potential bias, the ECB’s critique overlooked several important advantages of Bitcoin. Bitcoin is crucial for financial inclusion, especially in countries with unstable currencies. It also facilitates cross-border payments and has driven innovation in areas like energy efficiency and power grid stability.
