Note that Bank for International Settlements officials have already commented on cryptocurrencies this week. In particular, they shared the results of a study they conducted. The latter showed that the majority of Bitcoin transactions since 2015 turned out to be unprofitable.

The report is presented as a negative for digital assets, but in reality it only shows the unpreparedness of novice investors to hold crypto during the collapse stages. Still, in 2015, BTC could be bought for $200-250, while today it is valued at $24,000.

Accordingly, the main problem was that many buyers of bitcoins sold them after the collapse of the exchange rate for fear of further market downturns. Obviously, in this case, in hindsight, a strategy of increasing positions on a collapse would have been more profitable.

Be that as it may, bank officials have now moved on to direct criticism of digital assets.

What Bitcoin is being criticised for

The Bank for International Settlements is a key institution for banks around the world, so its previous warnings about the risks in crypto have not been taken lightly. This is standard practice because investing in digital assets does involve the risk of losing capital.

However, Carstens’ statement about the “war” against traditional currencies – also “lost” – has sparked much controversy in the cryptocurrency community. On his Twitter page, Saifiddin Ammos, author of The Bitcoin Standard, quoted the BIS chief executive’s statement. And here’s how a commenter under the nickname Kudzai Kutukwa reacted to it.

In addition to a gym membership, Carstens needs to get closer to reality. Bitcoin has already won, there is nothing Carstens and his CBDC can do to change that. It will take time for him to come to terms with the new paradigm.


And while Bitcoin is 65 percent off its highs today, the cryptocurrency still boasts certain important advantages over conventional fiat money. In particular, BTC has limited issuance, i.e., the rate at which coins are issued. Moreover, this rate is halved approximately every four years as a result of so-called halving.

Consequently, Bitcoin's inflation rate regularly declines. The same cannot be said of fiat currencies, as they can be printed at any rate and at any time. As a matter of fact, it was such printing that led to the collapse of the markets in 2022. Still, massive money printing was the answer to the coronavirus pandemic two years earlier, but in the end the Fed and other banks had to deal with serious inflation.


The previous quote also mentioned CBDC, which is a generic term for digital currencies that are being developed by central banks. The concept of CBDC is at various stages of development around the world. In general, CBDCs are often criticised for centralisation and the desire of banks to gain full control over all financial flows of ordinary people.

Bitcoin has had much more success on the issue of adoption. Back in 2021, BTC was fully legalised as a means of payment in El Salvador. The actions of the local government have also drawn criticism from bank representatives, but no one plans to abandon Bitcoin as an official budget instrument anymore.

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According to Cointelegraph sources, Bitcoin has been “declared dead” hundreds of times in the past, on top of the major cryptocurrency still being predicted to collapse due to various factors. The most popular arguments of critics are too high volatility, pressure from governments, fraud in the digital asset industry, as well as Bitcoin’s too high energy consumption due to mining.

In other words, Carstens’ comments are another acquisition in the piggy bank of poorly supported criticism of crypto. In reality, the fundamental position of the crypto market only continues to improve. Bitcoin has risen nearly 58 percent since the lows of 2022, while hash rate and mining complexity continue to renew their all-time highs. This suggests that the BTC blockchain itself is safer than ever, and that it cannot be manipulated in any way.

Finally, a post from a popular cryptopodcast account called “What Bitcoin Did” on Twitter is worth mentioning. The commentary rightly points out that most traditional currencies have been falling in value against the US dollar since 2015.

The US dollar itself continues to lose value due to rising inflation. Meanwhile, over the same period, Bitcoin’s value has risen by almost 8,000 per cent. So who really beat whom?


It seems that the argument of the Bank for International Settlements spokesman can be challenged. And while cryptocurrencies are still characterised by high volatility, which also leads to losses for first-time investors, their fundamental strengths are still just as compelling. These include independence from authorities and courts, limited maximum turnover of the asset, and sometimes the ability to reduce its own supply, i.e. deflation.


Share your opinion on this in our millionaires’ cryptochat. There we will talk about other important developments that affect digital assets and their development in one way or another.