What the ECB thinks of cryptocurrencies

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Cryptocurrencies are organized decentrally, are not printed like fiat money and do not require the involvement of third parties. No wonder then that banks have been left out until now and feel a bit disadvantaged when it comes to the distribution of wealth through crypto mining and cryptocurrencies.Now the President of the European Central Bank, Christine Lagarde, commented on the value and importance of cryptocurrencies.

There are politicians who are very fond of the crypto hype, such as El Salvador’s President Nayib Bukele. While he is already successfully working with bitcoins in his country and wants to set up his own mining farm, there are other politicians who are not so sympathetic to cryptos – such as the head of the ECB, who recently stated that she supports cryptocurrencies for consider worthless.

The platform for this was provided by a Dutch TV show that took place a few days ago and invited her as a guest.Specifically, she said: “My very humble assessment is that cryptocurrencies are worth nothing. They are based on nothing, there are no underlying assets that could serve as an anchor of security."Real crypto connoisseurs and mining farm operators should be very surprised by this statement. It is not true that the digital coins are based on nothing, because they are based on the highly innovative and groundbreaking blockchain technology and always the respective use case of a crypto project and its ecosystem, which diligently uses the functions. What Lagarde arguably meant by her view is that cryptos have no escrow value to exchange for in an emergency.

The fact that fiat money also has no equivalent value reveals how unfounded this criticism is – and has not done so since 1971, when American President Nixon had gold abolished as the equivalent of money. You used to be able to go to the bank and exchange your money for gold because every bank was obliged to have the equivalent amount of gold available. From this point of view, fiat money is not only worthless but, in contrast to cryptocurrencies, does not even have a real use case. It is merely our belief in its worth that keeps the system going. Christine Lagarde did not consider this fact in her not very reflected statements.Even more: With her statement, she wanted to deny the value of cryptocurrencies in order to pave the way for the digital euro, which is planned to be introduced in the near future and which will drive the existing monetary system even further into dependence on central banks and their “money creation”. would.

Against this background, it is clear that free and decentralized, alternative currencies are a thorn in the side. The question is: would Lagarde have made the same statement if she had invested in Bitcoin in 2009 and made a fortune from the performance like many other crypto hodlers? We will never know. However, it is clear that the relationship between the ECB and cryptocurrencies as such will not see a happy ending, but always tough competitive thinking.We recommend running a mining farm, as the returns here are anything but worthless and are a real pleasure after breaking even.