Unlike trusts, the total supply of Bitcoin (BTC) is not infinite or dictated by the monetary policy of a government or central bank. Although this has been constantly evolving since 2009, it is set at 21 million units and is partially process-dictated emissions. If the idea that one day more new Bitcoins will not be circulating will help add value to cryptocurrencies, some analysts believe that this feature will eventually backfire. This is especially the case with Chi Lo, BNP Paribas sees strategic strategy as the cause of cryptocurrency crash
The limited supply of Bitcoin does not make it a legal or value store
That was through a blog post on the official website BNP Paribas That’s it that He dropped many of his criticisms of Bitcoin and cryptocurrencies. In particular, he attacked the role of asset depositors attributing value to bitcoin, believing it to be a completely wrong opinion. ” Contrary to popular belief that a limited bitcoin and cryptocurrency supply is an advantage and protects value, treating them as real money is a big deal. He insisted. He further argued that the mother of the cryptocurrency represented only one person. Vehicle for speculators .
With the establishment of the total supply of Bitcoin as 21 million units. that Mentioned in the blog post This limitation makes cryptocurrency ineligible as a legal tender. Taking the example of trusts, he explained that it could not be issued on a static allowance This will prevent the central bank from implementing counter-cyclical policies. He said governments would take immediate action to protect the traditional financial system against cryptocurrencies. ” The more people believe that cryptocurrencies are money, the greater the risk of government intervention in this market. He warned.
CBDC as the first weapon of governments
At this last moment Mr. is hard to prove. that even if His theory of the store of value needs to be discussed. Another threat is emerging as players in the crypto space face stricter regulations in many countries. The conflict between cryptocurrencies and the CBDC is already becoming explosive On the one hand, it is a currency that benefits from government assistance.
Although there is currently no agreement between them on the operation and management of CBDCs, It is clear that they will all turn it into a weapon against cryptocurrency. This will actually happen as the central banks will have to implement the monetary policy behind these assets. Competition between digital currencies with or without a limited supply.
It is important to note that despite the criticisms and perspectives expressed by Mr. Lo, some traditional banks already support Bitcoin. Such a position therefore suggests that they should adhere to the principle of its limited supply. It does not look like the situation of BNP Paribas.