Tezos co-founder Arthur Breitman shared his views on the role of Bitcoin as an investment asset, highlighting its vulnerability under economic instability.
Bitcoin as ‘Funny Internet Money’
Arthur Breitman asserts that despite the popularity of Bitcoin and its perception as 'digital gold', many investors see it merely as a speculative asset during tough times. He emphasizes that in situations of economic uncertainty, investors are likely to sell their cryptocurrencies, viewing them as 'funny internet money'.
CITE_W_A: 'People might say it could be much more than funny internet money. Maybe so. But many see it that way.'
Market Risks of Bitcoin
Breitman points out that Bitcoin remains a momentum asset susceptible to price fluctuations, as investors tend to buy only during rising markets. He recalls the market crash in 2020 when Bitcoin’s price fell sharply in a brief period. Additionally, political instability can negatively impact its value, similar to the actions of former U.S. President Trump.
CITE_NA: 'When risks emerge, many investors start to liquidate their holdings, leading to a sharp price decrease.'
The Situation with Tezos
Breitman expressed frustration over Tezos’s decline in market rank, dropping from the top ten to 88th position. He considers this a 'damn shame'. Moreover, he highlighted that the cryptocurrency market's dynamics largely depend on investor sentiment and speculative factors.
Arthur Breitman's insights elucidate critical aspects regarding Bitcoin's investment appeal and the risks inherent within the cryptocurrency market, underscoring the volatility of perceptions and price susceptibility.
