Bitcoin Sell-off Reignites Debate over Cryptocurrency’s Value
A sharp fall in Bitcoin prices over the past week has reignited debate over whether the world’s largest cryptocurrency can genuinely serve as a store of value, after the digital asset dropped to less than half its October peak of $122,200.
Although Bitcoin staged a partial rebound on Friday as «buy the dip» investors returned, losses over the past 15 months mean many holders remain in the red, fuelling claims that the long-running rally has finally deflated.
Among the most outspoken critics is Richard Farr, chief market strategist at Pivotus Partners, who has publicly set a price target of zero for Bitcoin. Farr argues that cryptocurrencies have no intrinsic value, generating neither income nor underlying assets, and are sustained only by belief among investors.
The renewed slump has also revived broader questions about the role of cryptocurrencies in the financial system. Critics say that unlike banks, equities or government bonds, crypto assets do not channel savings into productive investment, instead representing a speculative corner of global finance.
Supporters counter that Bitcoin’s resilience and periodic recoveries show there is still demand for decentralised digital assets. However, sceptics argue that even a complete collapse would be unlikely to threaten financial stability, noting that Bitcoin’s market capitalisation of about $1.4 trillion remains small compared with global equity markets.
For now, the latest volatility has underscored a familiar divide: between those who view Bitcoin as a revolutionary asset class and those who see it as a speculative dream whose value could ultimately fade to nothing.
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