In a bold declaration, Jimmy Wales, co-founder of Wikipedia, has shared his stark perspective on Bitcoin, labeling it a “complete failure as a currency.” He anticipates that by the year 2050, Bitcoin’s price could plummet below $10,000 in today’s dollars, raising eyebrows amidst a backdrop of increasing institutional interest in cryptocurrency.
Wales’s critical remarks were aired in a series of posts on the social media platform X, where he acknowledged that while some investors expect Bitcoin to reach zero, that prediction may be overly drastic. He clarified, however, that he does foresee a significant decline in Bitcoin’s value over the coming decades, relegating it to a status more appropriate for “hobbyist tinkering” rather than a mainstream medium of exchange.
He emphasized that Bitcoin has not succeeded as a reliable store of value or as a dominant form of currency. Instead, he characterized it as “a speculative asset at best,” noting a lack of substantial adoption among AI systems. His warning extends to potential future trends involving exchange-traded funds (ETFs), where he expressed that their existence might not equate to sustained public interest or escalating prices, suggesting they could “trade lower and lower.”
These comments from Wales arrive during a period of rejuvenated interest in Bitcoin ETFs, which reported net inflows of approximately $297.4 million on February 25. This influx helped Bitcoin regain a price above $68,000 after a brief dip. Market analysts have described this upswing as “cautious accumulation,” indicating a lack of euphoric speculation despite the inflow of institutional capital.
In contrast to Wales’s critiques, proponents of Bitcoin have countered with arguments highlighting ongoing institutional investment as evidence of Bitcoin’s resilience and future price appreciation. The debate has fueled heated discussions on social media, with defenders challenging Wales’s assessment.
Despite his skepticism, Wales refrains from joining the ranks of analysts who predict an absolute collapse of Bitcoin. He indicates a belief in its robust structure, which could endure through various disruptions, a sentiment not universally held within the market. Observers have noted comments from other critics such as Richard Farr from Pivotus Partners, who has set a target price of “$0” for Bitcoin, citing persistent financial struggles within the mining sector as a critical flaw in the cryptocurrency’s viability.
Further reinforcing this narrative, Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, reiterated his view that Bitcoin could revisit the $10,000 mark, suggesting that the weakening of cryptocurrencies could lead to broader economic ramifications, even influencing the stock market.
Despite ongoing skepticism regarding Bitcoin’s long-term prospects, recent activity in U.S. spot Bitcoin ETFs paints a somewhat contrasting picture. The notable rebound on February 25 marked the highest single-day total of inflows in three weeks, indicating that while the path forward may be bumpy, interest in Bitcoin and its associated financial products persists among certain institutional investors.
Amidst these developments, Bitcoin was recorded trading around $67,916, reflecting a slight decrease of 0.94% in the past 24 hours, and the market remains attuned to both the critical perspectives and the optimistic narratives surrounding the future of cryptocurrency.
