Kathleen Breitman, co-founder of the Tezos blockchain, recently shared her critical viewpoint on Bitcoin’s present state of affairs in an interview with CNBC’s “Squawk Box.” Breitman stated after the most recent cryptocurrency market meltdown that the perception of Bitcoin as a store of wealth is “being decimated.” She ascribed the price decline to more general market anxieties, such as worries about a possible worldwide recession and geopolitical unrest. Breitman’s scathing analysis calls into doubt the stability of Bitcoin as an investment during difficult economic times, highlighting the continuing discussion regarding the cryptocurrency’s place in the financial system.
Tezos Co-founder, on Bitcoin
According to the news sources, Breitman shared her perspective during an interview with CNBC’s ‘Squawk Box’ on Aug. 5, where she commented on the market’s reaction as Bitcoin plunged below $50,000. She believes that Bitcoin’s price dropped due to broader market fears, including concerns over a potential global recession, with Japan’s stock crash exacerbating the situation.
Analysts also pointed to geopolitical tensions and the Federal Reserve’s recent interest rate decision as reasons for the market downturn on Aug. 5. In the crypto world, rumors of significant selling by Jump Trading added further downside pressure. Additionally, the regulatory uncertainty surrounding cryptocurrencies in various countries has contributed to market instability.
The looming threat of stricter regulations and potential government crackdowns has allegedly made investors more cautious. Furthermore, the lack of clear guidelines and the unpredictable nature of regulatory actions have amplified fears, leading to increased volatility and driving more investors to liquidate their positions.
Kathleen Breitman’s Scrutinizes Bitcoin
News sources report that Breitman did not hold back in her criticism of Bitcoin, referring to it as “internet pretend money.” She noted that the reaction to potential recession fears was similar to the beginning of COVID-19, where investors quickly sold off what they viewed as speculative assets, including Bitcoin.
This pattern, she argued, reflects a broader lack of confidence in Bitcoin as a stable investment during times of economic uncertainty. Breitman suggested that the repeated sell-offs indicate that many investors still see Bitcoin primarily as a high-risk asset rather than a reliable store of value.
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Additionally, Kathleen Breitman emphasized that Bitcoin is receiving “a bit of a shellacking” because it remains largely speculative. She asserted that many holders do not see Bitcoin as anything more than an experiment. Kathleen 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.”
Is Bitcoin a Core Asset with Viable Utility?
Despite her criticism, Kathleen Breitman reportedly acknowledged that Bitcoin is a core asset in the market and will continue to grow as it becomes more mainstream. She believes that Bitcoin does not need to be a store of value assets to be useful, highlighting its core utility. Breitman emphasized that Bitcoin’s underlying technology and its decentralized nature offer significant benefits that could drive its adoption in various sectors.
She pointed out that Bitcoin’s ability to facilitate borderless transactions and its potential use in financial inclusion efforts in underserved regions are crucial aspects that should not be overlooked, as news sources report. As more people and institutions recognize these advantages, Bitcoin’s role in the global financial system is likely to expand.
Bitcoin in the Market
Bitcoin’s value has reportedly rebounded to above $50,000 but remains 17% down in the past 24 hours and over 28% down over the past week. In contrast, gold has held its value while the crypto market has seen significant declines, with 24-hour liquidations rising to over $1 billion. This stark difference in performance underscores the ongoing debate about Bitcoin’s role as a reliable store of value.
While some investors continue to view Bitcoin as digital gold, its recent reported volatility has highlighted the risks associated with its speculative nature. The comparison with gold, a long-established store of value, emphasizes the challenges Bitcoin faces in achieving similar status. As the market continues to evolve, the question remains whether Bitcoin can stabilize and gain broader acceptance as a true store of value or if it will remain a high-risk, high-reward asset. Stay connected with TheBITJournal to learn more.
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