News sources report that Kathleen Breitman, the co-founder of the Tezos blockchain, puts a strong point stating that Bitcoin’s image as a store of value is “being decimated” as the crypto market undergoes a slump presently.
Tezos Co-founder’s View on Bitcoin
Kathleen Breitman reportedly shared her perspective in an interview with CNBC’s ‘Squawk Box’ on Aug. 5, where she was found commenting on the market’s reaction as Bitcoin allegedly plummeted lower than $50,000. According to her, Bitcoin’s price was slashed because of general anxiety in the market, comprising reservations about a potential global recession, with Japan’s stock crash worsening the situation.
BTC Sell-off and Market Factors
Analysts also hinted at geopolitical issues and the Federal Reserve’s recent interest rate decision as factors contributing to the market’s downward spiral on Aug. 5. Rumors of Jump trading selling massively have added fuel to the burning fire as well. Moreover, the uncertainty of policies surrounding cryptocurrencies in multiple countries has added to market instability.
The impending threat of more stringent regulations and potential government crackdowns has made investors more concerned. Additionally, the lack of clear guidelines and the uncertain nature of regulatory actions have multiplied the fears, leading to increased volatility and driving more investors to liquidate their holdings.
Breitman’s Harsh Criticism of Bitcoin
News sources suggest that Kathleen Breitman did not shy away from criticizing Bitcoin, referring to it as “internet pretend money.” She added that the reaction to the potential recession anticipation was similar to the beginning of COVID-19, where investors sold off what they viewed as speculative assets fast, including Bitcoin. This pattern, she stated, depicts a wider lack of confidence in Bitcoin as a stable investment during times of economic crisis. Breitman stated that the repeated sell-offs signal that many investors still see Bitcoin majorly as a high-risk asset rather than a dependable store of value.
In addition, Kathleen Breitman allegedly went on to say that Bitcoin is receiving “a bit of a shellacking” as it remains largely speculative. She emphasized that various holders do not view Bitcoin as anything more than an experiment. Breitman told CNBC’s Andrew Sorkin and Joe Kernen that she has yet to buy into the narrative of Bitcoin being a store of value, describing it as a meme currently “being decimated.”
Bitcoin’s Core Utility
Despite her criticism, Kathleen Breitman admitted that Bitcoin is a core asset in the market and will have continuous growth as more people adopt it. She reportedly believes that Bitcoin does not necessarily have to be a store of value asset to be viable, adding its core utility. Kathleen Breitman stated that Bitcoin’s underlying technology and its decentralized nature offer huge benefits that could make it glide its way into several industries.
She added that Bitcoin’s ability to empower borderless transactions and its potential use in financial inclusion efforts in underserved regions are integral aspects that should not be forgotten. As more people and institutions comprehend these benefits, Bitcoin’s role in the global financial play will potentially inflate.
Bitcoin’s Market Performance
It has been reported that Bitcoin’s value has gone back to above $50,000 but stays 17% down in the last 24 hours and over 28% down over the past week. Contrarily, gold has retained its value while the crypto market has seen notable drops, with 24-hour liquidations adding up to more than $1 billion.
This clear difference in performance highlights the current debate about Bitcoin’s role as a dependable store of value. While some investors continue to see Bitcoin as digital gold, its unpredictability has underscored the risks linked with its speculative nature. As the market grows to evolve, the question remains whether Bitcoin can stabilize and gain wider acceptance as a core store of value or if it will remain a high-risk, high-reward asset. Stay connected with TNYR to learn more.
