Kathleen Breitman, co-founder of the Tezos blockchain, stated that Bitcoin’s status as a store of value is “being decimated” following the latest cryptocurrency crash. Speaking to CNBC’s ‘Squawk Box’ on August 5, Breitman highlighted Bitcoin’s drop below $50,000 amid broader market turmoil.
Breitman attributed Bitcoin’s decline to investor panic over a potential global recession, exacerbated by a crash in Japan’s stock market. Additional factors include geopolitical tensions and the Federal Reserve’s recent interest rate decision. In the crypto market, rumors of significant sales by Jump Trading added further pressure.
Bitcoin Remains Speculative Currency
Breitman criticized Bitcoin as “internet pretend money,” likening the current situation to the early COVID-19 pandemic when fears of a recession led investors to sell off speculative assets first. She argued that BTC remains a speculative currency rather than a stable store of value.
“It’s good to acknowledge that it’s an experiment,” Breitman told CNBC’s Andrew Sorkin and Joe Kernen. She expressed skepticism about BTC as a store of value, describing that belief as a meme now “being decimated.”
Despite her criticism, Breitman acknowledged BTC core utility and potential growth as it becomes more mainstream, suggesting it doesn’t need to be a store of value to be useful.
As of now, Bitcoin has rebounded slightly above $50,000 but remains 17% down over the past 24 hours and more than 28% down over the past week. The wider crypto market also saw significant losses, with 24-hour liquidations exceeding $1 billion. In contrast, gold largely maintained its value amidst the market downturn.
