Crypto’s gold standard claims are fading fast

‘Cryptocurrencies are not playing on the same pitch, asset-wise, as gold – and one doubts they ever will.’ Photograph: Denys Rudyi/Alamy

The US-focused shakeout in financial markets has at least given us clarity on one point: bitcoin is not “digital gold” or a “store of value”, to mention two grand claims made about the cryptocurrency when its price was going up.

At $37,000, the late-afternoon level on Tuesday, bitcoin has fallen by 22% since the start of January and by 45% since recording an all-time high in early November. The crypto crew may have convoluted explanations for this setback, but the simplest one is best: bitcoin has always primarily been an instrument for pure speculation; when high-risk assets are out of favour, it will be clobbered.