Topic: Bitcoin as good store for value - page 5. (Read 912 times)
Well, OP, if you just know why many people choose to invest in Real Estate than Bitcoin, you probably have the idea. But I gonna tell you that it is because of the volatile sentiment of Bitcoin. Yeah, I would agree that people are thinking for a profit because they are investing in it and they are expecting ROI. It is somehow you know that the volatility of Bitcoin many investors suffer losses but if you are investing in Real Estate, they are sure about their profit earned, not losses. Bitcoin is a good investment ONLY if you can hold it and never think it was a safe haven because of its volatility.
The simple reason Bitcoin is a good Store of Value is because the values, assets or bitcoins stored on the system are shielded from the inflationary problem that is characterized by fiat currencies.
In that aspect you are right, that is why bitcoin could be taken into account to be a store of value like gold, its security and being immune to inflationary problems make it an excellent candidate, but we cannot ignore the other factors that determine if it is good enough to help countries overcome their crises when they need it, stores of value are extremely necessary for a nation, as this allows them not to completely decline when faced with debts or any another economic problem, so they need an asset whose value instead of fluctuating is maintained and increased, so taking the latter into account, it could be said that bitcoin is not a very good option for this part,
The simple reason Bitcoin is a good Store of Value is because the values, assets or bitcoins stored on the system are shielded from the inflationary problem that is characterized by fiat currencies.
In that aspect you are right, that is why bitcoin could be taken into account to be a store of value like gold, its security and being immune to inflationary problems make it an excellent candidate, but we cannot ignore the other factors that determine if it is good enough to help countries overcome their crises when they need it, stores of value are extremely necessary for a nation, as this allows them not to completely decline when faced with debts or any another economic problem, so they need an asset whose value instead of fluctuating is maintained and increased, so taking the latter into account, it could be said that bitcoin is not a very good option for this part, but it is for other areas, such as exchanges and investments, that is why governments should reconsider giving it a chance even if they do not use it as a reserve, since if each person can manage this asset, it will probably benefit the territory, helping it to progress and improve the economy through its citizens….Bitcoin can bring very good results as long as you know how to use it correctly. In an article I recently read, the way in which bitcoin influences countries is detailed:
Source: https://cointelegraph.com/learn/how-can-third-world-countries-counter-inflation-using-bitcoin
The simple reason Bitcoin is a good Store of Value is because the values, assets or bitcoins stored on the system are shielded from the inflationary problem that is characterized by fiat currencies.
Unlike fiat currencies, Bitcoin protects the assets of holders, especially long-term holders, from decreasing in value as bitcoins are printed & earned through hardwork rather than the typical way hugh amount of fiat currencies like the US dollar are easily printed without much work. This is part of what helps preserve the value of Bitcoin, and why it's not a good idea to put your assets in fiat currencies long-term.
Prnting more money than is necessary does reduce its value because the money supply is increased and demand lowered , thus lowering or debasing the value of the money, which is why fiat are considered inflationary currencies while Bitcoin is deflationary because rather than increasing the supply of the bitcoins they are periodically lowered by half to help increase their values which is called halving in Bitcoin world.
Unlike fiat currencies, Bitcoin protects the assets of holders, especially long-term holders, from decreasing in value as bitcoins are printed & earned through hardwork rather than the typical way hugh amount of fiat currencies like the US dollar are easily printed without much work. This is part of what helps preserve the value of Bitcoin, and why it's not a good idea to put your assets in fiat currencies long-term.
Prnting more money than is necessary does reduce its value because the money supply is increased and demand lowered , thus lowering or debasing the value of the money, which is why fiat are considered inflationary currencies while Bitcoin is deflationary because rather than increasing the supply of the bitcoins they are periodically lowered by half to help increase their values which is called halving in Bitcoin world.
, and in my opinion most people investing in btc are just looking for profit.
yes, indeed the goal of most people buying bitcoin is to make a profit, but of course there are also people who buy btc with the aim of store of value, and I personally also buy btc with the aim of making a profit. if store value I think gold is suitable as a store of value, but if btc in the future the price rises of course storing value in btc will be more profitable compared to gold but yes in this case it's up to the person who buys and because everyone has different opinions .
Bitcoin as a store of value is a good choice. When a person's investments were made in the form of bitcoin, this helps good at times of inflation. However the risk of holding is there, because we can't enjoy the growth anytime. We should have the mind to maintain patience to experience the best outcome.
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For me, this is not always possible but you have a point, we all know how Bitcoin is extremely volatile. And why we can say Bitcoin can be a store of value, it's because of its having scarcity, it's one of many factors why Bitcoin has value.We should also look at the other side, where the cons of Bitcoin are just like regulation, we are still in the days where the government is still not that friendly on Bitcoin, especially in other countries, so for me, it will be also complicated for people to put their money.
Because bitcoin is an asset that fluctuates over time - anyone who considers it a store of value must understand the risks involved. I think they understand the risks - but still they should do it in an amount they can afford. Of course the risk tolerance of each investor is different, obviously it must be adjusted to each plan.
, and in my opinion most people investing in btc are just looking for profit.
yes, indeed the goal of most people buying bitcoin is to make a profit, but of course there are also people who buy btc with the aim of store of value, and I personally also buy btc with the aim of making a profit. if store value I think gold is suitable as a store of value, but if btc in the future the price rises of course storing value in btc will be more profitable compared to gold but yes in this case it's up to the person who buys and because everyone has different opinions .
Talking about profit means we are talking about investment, how can a store of value give us a return? Bitcoin cannot be a store of value because it is very volatile, a store of value is a means of ensuring stability for the value of our assets. And gold is the true store of value because its volatility is negligible.
Although bitcoin gives us a lot of advantages and outstanding features, it is undeniable that profit is what we care about most. Those who are saying that they are treating bitcoin as currency but are always checking the bitcoin price every hour are lying.
Bitcoin is a store of value, it can converted from one currency to another without losing any value. Their are other physical form in which people can consider to be a better way to store their assets, but getting it done it can take expenses that will make the asset lose value. The potential to make good gain out of an asset without losing its initial value proves the worth of the asset and this is exactly what bitcoin is as a good store of value .
Converting or exchanging bitcoin to other currencies requires you an exchange fees, though this fees are usually not much, but then, it is still something, if you had your bitcoin in non-custodial wallet and want to exchange it to other currencies, necessity demands that you send the bitcoin to your preferred exchange first, and to do with, you must pay blockchain fees for the transaction confirmation, when this fee is removed, the value of your bitcoin has dropped a bit, after exchanging the bitcoin to another currency on the exchange and the exchange removing their fees, the value of your bitcoin has also dropped a bit, and all this is assuming the price of bitcoin remains stable, assuming the price is not stable at the time of this transactions, the is a chance that before you are done with all this transaction, the value of you bitcoin might have also reduced or increased by the reason of the high volatility of the price at that moment.
Trying to do that could lead into many misconception just like what Ops did in his statement about Bitcoin convertibility into multiple currencies without losing its value, and also since Ops crafted out Bitcoin advantage as a none physically represented asset/currency which escalates its transferability.
, and in my opinion most people investing in btc are just looking for profit.
yes, indeed the goal of most people buying bitcoin is to make a profit, but of course there are also people who buy btc with the aim of store of value, and I personally also buy btc with the aim of making a profit. if store value I think gold is suitable as a store of value, but if btc in the future the price rises of course storing value in btc will be more profitable compared to gold but yes in this case it's up to the person who buys and because everyone has different opinions .
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Bitcoin is a store of value, it can converted from one currency to another without losing any value. Their are other physical form in which people can consider to be a better way to store their assets, but getting it done it can take expenses that will make the asset lose value. The potential to make good gain out of an asset without losing its initial value proves the worth of the asset and this is exactly what bitcoin is as a good store of value .
Converting or exchanging bitcoin to other currencies requires you an exchange fees, though this fees are usually not much, but then, it is still something, if you had your bitcoin in non-custodial wallet and want to exchange it to other currencies, necessity demands that you send the bitcoin to your preferred exchange first, and to do with, you must pay blockchain fees for the transaction confirmation, when this fee is removed, the value of your bitcoin has dropped a bit, after exchanging the bitcoin to another currency on the exchange and the exchange removing their fees, the value of your bitcoin has also dropped a bit, and all this is assuming the price of bitcoin remains stable, assuming the price is not stable at the time of this transactions, the is a chance that before you are done with all this transaction, the value of you bitcoin might have also reduced or increased by the reason of the high volatility of the price at that moment.
That is if people want to make short-term profits from Bitcoin. They will buy and sell Bitcoins for profit. But those investing their money for the long term will keep their Bitcoins for a certain period of time and then sell them.
If someone keeps their Bitcoins without wanting to sell them for a profit, maybe he has a very long term target or perhaps an inheritance to his children and grandchildren later. As a store of value, Bitcoin will become an important asset for those who see the potential for the price to increase very high.
But for now, people who hold Bitcoin should be able to stay calm because the price of Bitcoin is still volatile and will not be stable for the next few years. So if they want to make big profits in the future, they better stay calm and keep their Bitcoins safe.
If someone keeps their Bitcoins without wanting to sell them for a profit, maybe he has a very long term target or perhaps an inheritance to his children and grandchildren later. As a store of value, Bitcoin will become an important asset for those who see the potential for the price to increase very high.
But for now, people who hold Bitcoin should be able to stay calm because the price of Bitcoin is still volatile and will not be stable for the next few years. So if they want to make big profits in the future, they better stay calm and keep their Bitcoins safe.
Even those who hold bitcoin long-term or use it as a legacy asset will not be immune to bitcoin's risks. I mean, besides volatility, don't forget that it is an uncertain asset because its popularity and legitimacy are not yet too great to be as safe as gold or other traditional assets. bitcoin can also be a store of value, but given its volatility, I think it's a good store of value. As we all know, volatility is only suitable for investment and not as a store of assets or a safe haven.
And the people who hold Bitcoin, including us, are okay and can accept that the legitimacy is not too big to be as safe as gold or other traditional assets. Especially for those who had succeeded in buying Bitcoin when the price was still very low, it's like they used their lunch money to buy Bitcoin at that time and then held it.
And if with its volatility, Bitcoin is not suitable as a store of assets, that's also okay because as long as we can buy Bitcoin at a low price, we are still safe. And even though let's say we buy Bitcoin at a peak and then decline, the price will return to the last peak and may even exceed it. One day, the price of Bitcoin will stabilize when it is used as a means of payment between countries but who knows when.
bitcoin is a digital currency, but not everyone can make btc a means of payment because the rules for each country are different and in my country the government also prohibits people from using btc as a means of payment, but the government only allows btc to be used as an investment asset. in my opinion, if btc is used as a store of value, of course it is possible, but it is very risky because of the price of btc
sometimes it goes down sometimes it goes up , and in my opinion most people investing in btc are just looking for profit.
sometimes it goes down sometimes it goes up , and in my opinion most people investing in btc are just looking for profit.
But everybody should also be aware that Bitcoin's value is not guaranteed. There is a strong demand for Bitcoin today, but we cannot know for certain whether the same demand would still be around in the future. Bitcoin is of course a good store of value because of its scarcity and because it is strictly ruled by codes and not by men, but we cannot say that it is without risk. Bitcoin remains to be a risky investment. Nobody can assure us that Bitcoin won't go back to $1,000 5 years from now.
bitcoin has many benefits and many people make btc a store of value, but in this case people's opinions are very different, because what I know bitcoin can indeed be used as a store of value but of course it is very risky because btc's price fluctuates and we won't know in the future future whether btc price will be high or not. but in my opinion gold is stable and very worthy of being used as a store of value.
Well, when it comes to the best store of value, gold matches and is so much better than bitcoin than bitcoin. But people will refute that and will be biased towards bitcoin because we are on a bitcoin forum. Moreover, I believe that there won't be many people using bitcoin as a store of value, most people are taking advantage of bitcoin's volatility to speculate for more profit. Like many people always say bitcoin is currency, but very few people actually treat it as currency and use it for payment. They are also actively accumulating bitcoin as the halving approaches and hope to make a profit when bitcoin hits $100k.
bitcoin has many benefits and many people make btc a store of value, but in this case people's opinions are very different, because what I know bitcoin can indeed be used as a store of value but of course it is very risky because btc's price fluctuates and we won't know in the future future whether btc price will be high or not. but in my opinion gold is stable and very worthy of being used as a store of value.
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Bitcoin is a store of value, it can converted from one currency to another without losing any value. Their are other physical form in which people can consider to be a better way to store their assets, but getting it done it can take expenses that will make the asset lose value. The potential to make good gain out of an asset without losing its initial value proves the worth of the asset and this is exactly what bitcoin is as a good store of value .
For me, this is not always possible but you have a point, we all know how Bitcoin is extremely volatile. And why we can say Bitcoin can be a store of value, it's because of its having scarcity, it's one of many factors why Bitcoin has value.Bitcoin is a store of value, it can converted from one currency to another without losing any value. Their are other physical form in which people can consider to be a better way to store their assets, but getting it done it can take expenses that will make the asset lose value. The potential to make good gain out of an asset without losing its initial value proves the worth of the asset and this is exactly what bitcoin is as a good store of value .
We should also look at the other side, where the cons of Bitcoin are just like regulation, we are still in the days where the government is still not that friendly on Bitcoin, especially in other countries, so for me, it will be also complicated for people to put their money.
A lot of people only think of how they can make money from bitcoin to become rich and this is all they can think about bitcoin. Bitcoin can be as a store of value for all assets, making every properties to remain valuable. Bitcoin is a digital property that can be bought without any other expenses attached to it unlike some physical properties expecially Real Estate that has other much expenses that is needed to be spent first before getting the main property, if one should consider to convert this property into another form it will take more expenses for it to get done.
Bitcoin is a store of value, it can converted from one currency to another without losing any value. Their are other physical form in which people can consider to be a better way to store their assets, but getting it done it can take expenses that will make the asset lose value. The potential to make good gain out of an asset without losing its initial value proves the worth of the asset and this is exactly what bitcoin is as a good store of value .
I disagree with you, because for being a reliable store of value, an asset needs to keep a rather stable or at least a predictable value over time, like gold, artworks, real estate and some commodities. This is not the case with Bitcoin, because despite its 21 million units limited supply and its decentralized nature it's an high volatile asset, risky for investments. Unlike other commodities, it suffers from a lack of intrinsic value and a regulatory uncertainty, regulators can compromise its accessibility and legality in different jurisdictions.Bitcoin is a store of value, it can converted from one currency to another without losing any value. Their are other physical form in which people can consider to be a better way to store their assets, but getting it done it can take expenses that will make the asset lose value. The potential to make good gain out of an asset without losing its initial value proves the worth of the asset and this is exactly what bitcoin is as a good store of value .
I agree, if only Bitcoin is ever inclining then it will be the best store of value but no, Bitcoin got high fluctuation. The high volatility makes Bitcoin attractive for speculative investment and trade but it nullifies the capability of bitcoin in terms of store of value. Even if Bitcoin is increasing in value per cycle, the wild ups and downs of Bitcoin's price value greatly affect its store of value.
A lot of people only think of how they can make money from bitcoin to become rich and this is all they can think about bitcoin. Bitcoin can be as a store of value for all assets, making every properties to remain valuable. Bitcoin is a digital property that can be bought without any other expenses attached to it unlike some physical properties expecially Real Estate that has other much expenses that is needed to be spent first before getting the main property, if one should consider to convert this property into another form it will take more expenses for it to get done.
Bitcoin is a store of value, it can converted from one currency to another without losing any value. Their are other physical form in which people can consider to be a better way to store their assets, but getting it done it can take expenses that will make the asset lose value. The potential to make good gain out of an asset without losing its initial value proves the worth of the asset and this is exactly what bitcoin is as a good store of value .
I disagree with you, because for being a reliable store of value, an asset needs to keep a rather stable or at least a predictable value over time, like gold, artworks, real estate and some commodities. This is not the case with Bitcoin, because despite its 21 million units limited supply and its decentralized nature it's an highly volatile asset, risky for investments. Unlike other commodities, it suffers from a lack of intrinsic value and a regulatory uncertainty, regulators can compromise its accessibility and legality in different jurisdictions. Bitcoin is a store of value, it can converted from one currency to another without losing any value. Their are other physical form in which people can consider to be a better way to store their assets, but getting it done it can take expenses that will make the asset lose value. The potential to make good gain out of an asset without losing its initial value proves the worth of the asset and this is exactly what bitcoin is as a good store of value .
The only thing that may cause some problems is Bitcoin's volatile nature. But this can be solved by doing DCA or just keep HODLing it till the price gets stable or increases in value. And having no complicated issues like physical investment, it is the best store of value for sure. Decentralization was the key to Bitcoin's creation. And it's doing a great job of making Bitcoin what it is today. This is also the reason why Bitcoin is the best store of value. No one can manipulate or control your assets as long as you keep them in your private wallet. Also if you are trying to send it somewhere, you can do it in an instant all across the world. What's more you need? You got the freedom with Bitcoin, it's easy and secure, and it can be transferred all across the world in a matter of time.
So yeah, I believe that Bitcoin is the best store of value. No doubt. (As long as you can keep it that way)!
Of course BTC is a good store of value in the long run as long as one doesn't forget his/her private keys to the wallet. So yeah, I believe that Bitcoin is the best store of value. No doubt. (As long as you can keep it that way)!
The only concern is that, since it is a volatile currency, the market price as at the time of investing in a DCA or HoDling or transfer/withdrawal of the coins, might just not be same as at the initial start. One would have a value worth more than the original input because of interest rates rising and not charges.
Still, it is more stable over a long duration, compared to other altcoins or shitcoins out there.
That is if people want to make short-term profits from Bitcoin. They will buy and sell Bitcoins for profit. But those investing their money for the long term will keep their Bitcoins for a certain period of time and then sell them.
If someone keeps their Bitcoins without wanting to sell them for a profit, maybe he has a very long term target or perhaps an inheritance to his children and grandchildren later. As a store of value, Bitcoin will become an important asset for those who see the potential for the price to increase very high.
But for now, people who hold Bitcoin should be able to stay calm because the price of Bitcoin is still volatile and will not be stable for the next few years. So if they want to make big profits in the future, they better stay calm and keep their Bitcoins safe.
If someone keeps their Bitcoins without wanting to sell them for a profit, maybe he has a very long term target or perhaps an inheritance to his children and grandchildren later. As a store of value, Bitcoin will become an important asset for those who see the potential for the price to increase very high.
But for now, people who hold Bitcoin should be able to stay calm because the price of Bitcoin is still volatile and will not be stable for the next few years. So if they want to make big profits in the future, they better stay calm and keep their Bitcoins safe.
Even those who hold bitcoin long-term or use it as a legacy asset will not be immune to bitcoin's risks. I mean, besides volatility, don't forget that it is an uncertain asset because its popularity and legitimacy are not yet too great to be as safe as gold or other traditional assets. bitcoin can also be a store of value, but given its volatility, I think it's a good store of value. As we all know, volatility is only suitable for investment and not as a store of assets or a safe haven.
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