Bitcoin News: Solana’s Yakovenko Dismisses BTC’s Value—Sees It Only as Crisis Insurance

• Yakovenko dismisses Bitcoin’s value, viewing it as crisis insurance rather than an investment.
• Bitcoin’s market position remains debated, with gold outperforming BTC since Trump took office.

After previously suggesting that Bitcoin might transition to a hybrid proof-of-stake model as its role in national reserves grows, Solana co-founder Anatoly Yakovenko has now sparked debate by asserting that Bitcoin lacks intrinsic value, viewing it primarily as crisis insurance, as CNF detailed in a recent report.

Yakovenko argues that Bitcoin serves as a safeguard against the unlikely collapse of a global superpower, estimating a 1% annual probability for such an event. Consequently, he suggests that allocating 1% of one’s wealth to Bitcoin is more of a precautionary measure rather than a traditional investment.

Bitcoin as Crisis Insurance

Yakovenko’s perspective reframes Bitcoin not as a vehicle for generating returns, but as a protective asset in extreme geopolitical scenarios. In a recent post on X, he stated:

BTC has no value. In the best light, it’s insurance. Based on my lifetime priors, there is a 1% chance a superpower will collapse in any given year. It’s worth it for me to spend 1% of my wealth on some asset that might not go to zero in that environment.

He further emphasized that Bitcoin’s effectiveness as insurance remains constant, whether its market price is $10,000 or $100,000, while also cautioning that its success in such scenarios is not guaranteed.

Divergent Views on Bitcoin’s Role

The cryptocurrency community remains divided on Bitcoin’s function as a hedge against economic instability. Some experts argue that Bitcoin’s high volatility and correlation with traditional stock markets diminish its reliability as a safe-haven asset during economic downturns.

Conversely, others advocate for Bitcoin as a hedge against currency debasement, suggesting that institutions allocatea portion of their assets to BTC to mitigate risks associated with excessive government spending. In the same X post, Yakovenko added:

It’s not an investment, it’s a cost, and there is no guarantee it will work. It’s as good at doing that at $100k as it is at $10k. If it works, it has very little to do with technology outside of the initial innovation that happened 15 years ago.

Market Reactions and Current Trends

According to Barron.com, recent market trends reflect the ongoing debate about Bitcoin’s value proposition. Since President Donald Trump took office on January 20, 2025, gold has outperformed Bitcoin, with gold appreciating nearly 8%, while Bitcoin has declined by 24% from its peak of $109,000.

This trend suggests that investors currently favor traditional safe-haven assets like gold amid economic and geopolitical uncertainties. Yakovenko’s characterization of Bitcoin as crisis insurance rather than a traditional investment challenges prevailing narratives about its intrinsic value.

According to CoinMarketCap data, at the time of writing, Bitcoin (BTC) is trading at $92,394, reflecting a 7.53% surge in the past day, despite a 3.41% decline in the past week. See BTC price chart below.