Bitcoin store of value narrative ‘being decimated’, Tezos co-founder says

Kathleen Breitman, co-founder of the Tezos blockchain, says that Bitcoin’s narrative as a store of value was “destroyed” during the recent crypto crash.

The co-founder of Tezos (XTZ) commented on the cryptocurrency market’s reaction to Bitcoin’s (BTC) drop below $50,000 in an interview with CNBC’s ‘Squawk Box’ on August 5.

Bitcoin’s price has fallen as investors and traders react to broader market jitters, Breitman said. Catalysts for this shift in sentiment include fears of a possible global recession, with Monday’s crash in Japanese stocks further exacerbating the market-wide situation.

Tezos co-founder comments on BTC sale

Analysts also attributed the market’s August 5 decline to geopolitical tensions and the Federal Reserve’s latest interest rate decision. In crypto, rumors of a major sell-off from Jump Trading have created fresh downward pressure.

The crypto backlash is why Breitman described BTC as the “fake money of the internet.”

“Basically what we’re seeing is something similar to what happened at the beginning of COVID. People are feeling something resembling a recession, and the first thing they decide to sell is their counterfeit money online,” Breitman said.

Not a ‘store of value’

Breitman added that BTC has “taken a bit of a hit” because it remains a largely speculative currency and most holders still do not see it as anything more than that.

“It’s good to recognize that this is an experiment,” Breitman told CNBC’s Andrew Sorkin and Joe Kernen. As for Bitcoin being a store of value, the Tezos co-founder said he’s not yet sold on that narrative, adding that it’s a meme that’s currently being “killed.”

Despite this view, Breitman said Bitcoin is a fundamental asset in the market and will grow as it becomes more mainstream. He added that BTC has a fundamental utility and does not need to be a store of value to be useful.

Bitcoin in double-digit decline

Digital gold has recovered slightly above $50,000, but its value is down 17% in the past 24 hours and more than 28% in the past week. Elsewhere, it’s a sea of ​​red for crypto, with 24-hour liquidations topping $1 billion.

The declines in Bitcoin and stocks in particular contrast with the performance of gold, which has largely retained its value despite the market crash.