European Central Bank researchers declare war on Bitcoin

A new paper by European Central Bank economists Ulrich Bindseil and Jürgen Schaaf argues that rising Bitcoin prices disproportionately benefit early adopters at the expense of latecomers and non-holders. The paper says that in a scenario where Bitcoin's price keeps rising, "the existence of Bitcoin impoverishes both non-holders and latecomers," and it suggests governments enact legislation "to prevent Bitcoin prices from rising or to see Bitcoin disappear altogether." Bitcoin analyst Tuur Demeester called the paper a "declaration of war" on Bitcoin, warning that authorities could use it to justify harsh taxes or bans. The article notes that the paper does not necessarily reflect the ECB's official stance.