Bitcoin's Dependence on New Believers Sparks Concerns Over Sustainability

The recent downturn in Bitcoin's price serves as a reminder of the cryptocurrency's volatile nature.

One expert argues that Bitcoin's value is closely tied to its ability to attract new investors, highlighting the similarities between the cryptocurrency and Ponzi schemes.

A key factor contributing to this dynamic is the decision by US financial regulators to approve Bitcoin exchange-traded funds (ETFs) in January 2024, which created a surge of new buyers.

However, with new buyers drying up, concerns have arisen that Bitcoin may be facing an existential threat if it cannot find sufficient new investors to sustain its growth.