Recently, a new report titled "The Distributive Impact of Bit" by economists from the European Central Bank has sparked heated discussions. The report states that even in a scenario of continuously rising BTC prices, the true beneficiaries are still limited to early adopters, while late entrants and non-holders may face significant economic consequences, and it strongly points out that Bit is actually "unfair".
Looking at the term "Lamborghini" to see the advantage of Bit pioneers
According to The Block report, the European Central Bank economists in this report analyze that the original intention of Bit, the global payment system envisioned by Satoshi Nakamoto, has gradually deviated from its track, and Bit, originally conceived as a decentralized payment tool, is now more often seen as an investment asset. The report authors Ulrich Bindseil and Jürgen Schaaf point out that the current state of Bit is different from traditional assets such as real estate, bonds, or stocks.
Bit does not generate cash flow, does not pay interest like bonds, nor does it pay dividends like stocks, and it cannot even have a production use like commodities.
Based on this, the value of Bit is difficult to measure through traditional asset valuation methods, and the two economists emphasize in this report that most common valuation models are not applicable to Bit, and Bit is more like an investment asset dependent on market demand rather than an asset class that actually generates economic benefits.
The report further points out that even in a situation where Bit prices continue to rise and the market does not experience a "bubble burst", late entrants and non-holders will still face severe economic losses, as early adopters will sell Bit to late entrants or convert it into physical assets, and thus "Lamborghini" is a representative of such assets often mentioned in the crypto market.
Bit leads to wealth inequality
The report authors believe that Bit cannot increase the productive potential of the economy, and therefore its operating logic can be seen as a "zero-sum game", meaning that the wealth growth of early adopters comes entirely from the economic losses of late entrants or non-holders. The report emphasizes:
The Lamborghinis, Rolexes, villas, and even stock investment portfolios purchased by early Bit investors are not the result of increased economic productivity, but are achieved through the consumption and wealth reduction of those who did not initially hold Bit.
The report further explains that missing the investment opportunity in Bit not only means losing the potential for wealth growth, but may even lead to impoverishment, and compared to a world without Bit, those who failed to enter the market have actually become poorer, as wealth has been redistributed to the hands of early adopters.
This transfer of wealth and purchasing power, the report believes, may have profound negative impacts on society. As resources become concentrated in the hands of early Bit holders, other social strata will face the risk of impoverishment, and the authors warn that this not only endangers the cohesion and stability of society, but may also further threaten the foundations of the democratic system.
The latest report from the European Central Bank on Bit has sparked a strong reaction from the crypto community, with Bit analyst Tuur Demeester expressing strong dissatisfaction with this report on the X platform, calling it "the most aggressive" official report to date, he further pointed out:
These central bank economists now see Bit as an existential threat and are prepared to attack it in any way possible.
