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

Kathleen Breitman, the co-founder of the Tezos blockchain, says Bitcoin’s narrative as a store of value is “being decimated” amid the latest crypto crash.

The Tezos (XTZ) co-founder shared the viewpoint in an interview with CNBC’s ‘Squawk Box’ on Aug. 5, commenting on the crypto market reaction as Bitcoin (BTC) plunged to under $50,000.

According to Breitman, Bitcoin’s price plunged as investors and traders reacted to broader market jitters. Catalysts to this flip in sentiment include fears of a potential global recession, with the crash in Japan’s stocks exacerbating the situation across the market on Monday.

Tezos co-founder comments on BTC sell-off

Analysts also attributed the market’s tumble on Aug. 5 to geopolitical tensions and the Federal Reserve’s recent interest rate decision. In crypto, rumors of massive selling by Jump Trading injected new downside pressure.

It’s the crypto reaction that has Breitman not mincing her words about BTC as “internet pretend money.”

“Basically, what we are seeing is something similar to what happened at the beginning of COVID, where folks get a sense of something that looks like a recession and the first thing they decide to sell is their internet pretend money,” Breitman said.

Not a ‘store of value’

Breitman added that BTC is getting “a bit of a shellacking” as it remains a largely speculative currency and that most holders still don’t see it as anything more.

“It’s good to acknowledge that it’s an experiment,” Breitman told CNBC’s Andrew Sorkin and Joe Kernen. As for Bitcoin being a store of value, the Tezos co-founder said she’s yet to buy into that narrative, which she added was a meme currently “being decimated.”

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

Bitcoin is down double digits

While the digital gold has rebounded slightly to above $50k, its value remains 17% down in the past 24 hours and more than 28% in the red over the past week. Elsewhere, it’s a sea of red for crypto as 24-hour liquidations rose to over $1 billion.

Notably, Bitcoin and stocks’ declines contrasted with the performance of gold, which largely held its value as the market got smashed.