(May 21): One-day swings of 31%. A slump amid a jump in U.S. inflation. Ever more critical regulatory scrutiny. Bitcoin delivered all of these in the past few days, undermining its claimed role as a portfolio hedge rivaling gold.

While true believers still tout Bitcoin’s merits as a store of value akin to digital bullion, recent events show how controversial that view is. The largest token has shed 40% after hitting a mid-April record, and its volatility compared with the precious metal jumped during this week’s cryptocurrency rout.