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European Bankers Scoff at Bitcoin for Its Risk, Huge Energy Inefficiency

Source: ArsTechnica.com

Cyrus Farivar:

“For a stable monetary and financial system, we need no crypto-tokens, but rather central banks obligated to price stability and effective banking regulation, and we have both in the eurozone,” Jens Weidmann, the head of the Bundesbank, said.

…and then later in the piece:

“In this respect, money has to do with confidence, and that’s why we, central bankers, feel that we have a certain role to play to preserve confidence of the public in our legal tender,” he explained. “There is so much money flowing in that it’s like a gold rush—but there is no gold.”

There’s no denying that there are some good points here. Especially about the energy cost of Bitcoin mining. But on the other hand they’re essentially saying “don’t look over there, what you need is us.” How does the oft-quoted Upton Sinclair line go?

“It is difficult to get a man to understand something, when his salary depends upon his not understanding it.”

I think I actually laughed out loud when I saw this followup headline: Bitcoin leaves elite haters behind as it hits $10,000 again1.

  1. The original headline was “Even after financial elite slam bitcoin, price clears $10,000 again”, which struck me as even more ridiculous.