Editorial Board

Whatever Bitcoin Is, It Isn’t Acting Like Money

Its price is completely disconnected from any practical use.

May 21, 2021 at 12:00 PM UTC

By The Editorial Board

The Editorial Board publishes the views of the editors across a range of national and global affairs.

Used to be a Bitcoin.
Photographer: Wei Leng Tay/Bloomberg

Provide news feedback or report an error

Site feedback:

Take our Survey

Anyone who still thinks Bitcoin is a viable form of money should have learned otherwise this week. The cryptocurrency’s wild fluctuations say it isn’t. For those just looking to get rich quick, the message is even simpler: Buyer beware.

At one point on Wednesday, the price of a Bitcoin had dropped more than 40% over the course of a week — disconcerting for the throngs of retail investors who, egged on by Elon Musk and other celebrities, had helped drive it up more than 230% over the previous six months. In a matter of days, hundreds of billions in virtual wealth disappeared.