TL;DR
- Kathleen Breitman, co-founder of Tezos, questions Bitcoin’s reliability as a store of value, calling it “internet pretend money.”
- Breitman attributes BTC’s drop below $50,000 to factors such as fears of a global recession, massive sell-offs in the Japanese market, and geopolitical tensions.
- Despite her criticisms, she acknowledges that BTC remains a fundamental asset in the crypto ecosystem, although its role as a safe haven is under debate.
Amid the turmoil caused by yesterday’s global market crash, Kathleen Breitman, co-founder of Tezos, has questioned Bitcoin’s validity as a reliable store of value. In a recent interview on CNBC’s ‘Squawk Box’ on August 5, Breitman expressed skepticism about BTC’s ability to maintain its value in times of economic uncertainty, calling it “internet pretend money.” Her comments come in the wake of the cryptocurrency’s sudden plunge, which saw it drop below $50,000.
Breitman attributes this decline to a series of economic and geopolitical factors that are affecting the market as a whole. Among them, she highlights fears of a global recession, a situation that has been exacerbated by massive sell-offs in the Japanese stock market. Additionally, she points out that recent geopolitical tensions and interest rate adjustments by the United States Federal Reserve have placed further pressure on an already weakened market.
One of the most discussed points by Breitman is the speculative nature of Bitcoin, which, in her opinion, makes it vulnerable to market fluctuations. She compared the current situation to the one experienced at the beginning of the COVID-19 pandemic, when economic uncertainty triggered a rapid sell-off of assets considered speculative. For Breitman, Bitcoin embodies this same vulnerability, calling into question its utility as a store of value in times of crisis.
Is Bitcoin’s Role Changing?
However, she does not completely dismiss Bitcoin’s role in the crypto industry. Despite her criticism of its volatility and the narrative surrounding it as a supposed store of value, she acknowledges that it remains a fundamental asset in the crypto economy. According to her, its value and utility transcend the simple accumulation of wealth or protection against inflation.
Breitman suggests that investors should reevaluate their expectations regarding Bitcoin and consider the possibility that its role in the cryptocurrency market is evolving. Although it remains a key piece of the sector, its future as a safe haven in times of uncertainty is now up for debate.
