The market for cryptocurrencies has been tumultuous in recent months, with Bitcoin's price experiencing a significant decline. The fall has led to widespread criticism, with some investors and experts calling it a failed asset. However, proponents of the currency argue that its core value drivers remain strong.
One of the main criticisms leveled against Bitcoin is its failure to act like gold during times of economic turmoil or inflation. Its price has fallen by over 40% since peaking at $126,000 in late October 2025, while the price of gold has surged past $5,100 per ounce.
However, proponents argue that the investment thesis for buying Bitcoin was never primarily about crisis insurance, but rather long-term, scarcity-driven price appreciation. The fact remains that only 21 million coins will ever exist, with about 20% estimated to be permanently lost.