Topic: Bitcoin: "Maybe Is a Partial Store of Value" (Read 663 times)
It is all relative. If I am living in a country such as Venezuela or Zimbabwe, then I would use Bitcoin as a store of value. Because I know that BTC is more stable when compared to either the Zimbabwean Dollar or the Venezuelan Bolivar. But that is not the case if I am a resident of some other country, such as the United States or the United Kingdom.
They never had any arguments about why something like bitcoin should not be incredibly valuable but now they are really desperate to try to find anything they can say to try to say bitcoin will not maintain its value.
So you can see how flawed and baseless their arguments are and it does not take long for the long timers to understand what these people are trying to stir and thus become immune to such "opinions". People can opine what they want. Does not matter to you if your belief and faith are in the right place.Quote
They tried in the past to use the stability of fiat as a sign that it was better but since then inflation is making sure we notice that stability is for nothing if our purchasing power is going down while we see the opposite process happening with bitcoin.
Stability of fiat vs bitcoin is more of a cognitive bias. You dont say any market to be stable. Every market is moving and is potentially volatile. But the newbies who are entering the market easily get swayed unless they have a background of trading and market psychology.The value of bitcoin is determined by the people who are willing to purchase it at a given price. Due to this scenario, the law of demand/supply dictates its price on the market given that it only has a limited supply of 21 million (which by the year 2140, all bitcoins will be mined out).
If you based the price depending on its history, you can see that its price continuously increases/decreases depending on external and internal factors. While some claim that Bitcoin is a whole bubble, others see it as an alternative method for investment. But one thing has not changed, the price still continues to rise.
I would say that holding bitcoin can be a good store-of-value especially if you consider the long-term aspect of its potential and applicability in the future. Not to mention, we are only experiencing and enjoying its face-value and we have yet to see the blockchain be implemented in our transactions.
Next stop would be "bitcoin could be awesome but I still think it will go down to zero" or something, how could you still believe that something will go down to zero when you believe it has a partial store of value? I mean if it can store value that means it can't go down. It is like saying "this is a rare painting of van gogh, there is no other one like it, it is very valuable and whoever buys it could store it and sell it for a lot higher in the future, I think it will worth zero one day".
Do you realize how idiotic that sounded? Like really, HOW idiotic that sounds, well this dude sounds as moronic as that sentence if not more. Bitcoin is a digital commodity that has a store of value and a way of spending it as well that rivals anything ever in history of mankind and can't go down that much.
They never had any arguments about why something like bitcoin should not be incredibly valuable but now they are really desperate to try to find anything they can say to try to say bitcoin will not maintain its value.Do you realize how idiotic that sounded? Like really, HOW idiotic that sounds, well this dude sounds as moronic as that sentence if not more. Bitcoin is a digital commodity that has a store of value and a way of spending it as well that rivals anything ever in history of mankind and can't go down that much.
They tried in the past to use the stability of fiat as a sign that it was better but since then inflation is making sure we notice that stability is for nothing if our purchasing power is going down while we see the opposite process happening with bitcoin.
Bitcoin is not s store of value,its just medium of exchange.
The value of bitcoin keeps increasing so it maybe partially considered as storage of value too.
The value of bitcoin keeps increasing so it maybe partially considered as storage of value too.
You just contradicted your idea in the first place. Bitcoin is surely a store of value as we cannot think of any idea how we can implement it to small scale market transaction and commerce. If ever we need to to save money, bitcoin is the number one option for me, but not in terms of daily transactions since I find bitcoins transaction fee so high and it has an unstable market price.
And bitcoin? I've never thought of it as a safe-haven asset or a true store of value. That value is constantly changing, and the volatility is freakin' notorious. If it ever became stable, it might be able to store some value but as it is it's a huge gamble. Anyway. It's a gamble that I fell in love with, so I'm not knocking bitcoin by any means.
Volatility is there with stocks and commodities too. It did not make bitcoin any different but the good thing about bitcoin is its deflationary supply and decentralization which makes it a somewhat safer than those controlled by banks and government organizations. Again it is correct that no "store of value" is prefect, they all have their pros and cons. Hence it becomes a personal opinion. But not to mention what J Dimon did last to last year and bought bitcoin at a low price. The dumpers literally gave away their coins to his employees by selling at low. Therefore any opinionated article should be chuckled at and not taken seriously.
Next stop would be "bitcoin could be awesome but I still think it will go down to zero" or something, how could you still believe that something will go down to zero when you believe it has a partial store of value? I mean if it can store value that means it can't go down. It is like saying "this is a rare painting of van gogh, there is no other one like it, it is very valuable and whoever buys it could store it and sell it for a lot higher in the future, I think it will worth zero one day".
Do you realize how idiotic that sounded? Like really, HOW idiotic that sounds, well this dude sounds as moronic as that sentence if not more. Bitcoin is a digital commodity that has a store of value and a way of spending it as well that rivals anything ever in history of mankind and can't go down that much.
Do you realize how idiotic that sounded? Like really, HOW idiotic that sounds, well this dude sounds as moronic as that sentence if not more. Bitcoin is a digital commodity that has a store of value and a way of spending it as well that rivals anything ever in history of mankind and can't go down that much.
Is there such a thing called "partial store of value", it's either bitcoin is being used as SoV or not, there's no middle grounds there.
The thing is that this kind of debates has been on-going for many years now and actually people are seeing bitcoin as good leverage, hence store of value. That's why the term HODL came up, because early bagholders chooses not to sell a single bit of their coins because they know that the price could shoot up in the future, and it did at the end of 2017.
Even if we were to assume that bitcoin is a partial store of value then we need to question what kind of function other currencies can have.The thing is that this kind of debates has been on-going for many years now and actually people are seeing bitcoin as good leverage, hence store of value. That's why the term HODL came up, because early bagholders chooses not to sell a single bit of their coins because they know that the price could shoot up in the future, and it did at the end of 2017.
Using that kind of standard then this means that gold is a partial store of value as well because as we know its price can go up and down, and what about fiat? Fiat doesn't even reach that standard, if anything fiat is a sure way to lose your wealth over time and yet you do not hear that from economists.
you should stop listening to what mass media has to say about something that you are confident about. Manipulators are everywhere. You need to weed out the one that you dont need and keep your eyes on the prize.
You got that right--I don't know what this guy's agenda is, or if he even really has one, but he's not entirely wrong. What is a good store of value? Dunno, to me it means something you own that at least holds its value in the face of inflation. Everyone always says gold & silver are stores of value, and that might be true for certain periods of time, but it's not always true. I don't think there really is an ideal store of value unless it's some financial instrument that was created to keep pace with inflation. Treasury bonds are supposed to do that--but you have to trust the government.
And bitcoin? I've never thought of it as a safe-haven asset or a true store of value. That value is constantly changing, and the volatility is freakin' notorious. If it ever became stable, it might be able to store some value but as it is it's a huge gamble. Anyway. It's a gamble that I fell in love with, so I'm not knocking bitcoin by any means.
I'm not arguing that it looks unfit to be a store of value, because it fluctuates a lot more than you'd want it to. It's bound to be more stable as the market grows though, and we're actually seeing improvements on that end in recent months, outside some wild swings here and there.
Most people who refer to Bitcoin as a store of value are in it for the long game, and aren't really fazed by the short fluctuations. It serves a very niche portion of the population at the moment, but it does work for that niche. Things are only going to be better.
Most people who refer to Bitcoin as a store of value are in it for the long game, and aren't really fazed by the short fluctuations. It serves a very niche portion of the population at the moment, but it does work for that niche. Things are only going to be better.
Totally agree that at the moment it is not a very good store of value because of the price fluctuations, and also agree that things will improve and the volatility will fade as the market matures.
But I would say it is a store of value right now, otherwise why are people holding it? It is a store of value that currently has some big problems that will be resolved in the longer-term, but it is still a store of value.
Is there such a thing called "partial store of value", it's either bitcoin is being used as SoV or not, there's no middle grounds there.
The thing is that this kind of debates has been on-going for many years now and actually people are seeing bitcoin as good leverage, hence store of value. That's why the term HODL came up, because early bagholders chooses not to sell a single bit of their coins because they know that the price could shoot up in the future, and it did at the end of 2017.
The thing is that this kind of debates has been on-going for many years now and actually people are seeing bitcoin as good leverage, hence store of value. That's why the term HODL came up, because early bagholders chooses not to sell a single bit of their coins because they know that the price could shoot up in the future, and it did at the end of 2017.
I'm not arguing that it looks unfit to be a store of value, because it fluctuates a lot more than you'd want it to. It's bound to be more stable as the market grows though, and we're actually seeing improvements on that end in recent months, outside some wild swings here and there.
Most people who refer to Bitcoin as a store of value are in it for the long game, and aren't really fazed by the short fluctuations. It serves a very niche portion of the population at the moment, but it does work for that niche. Things are only going to be better.
Most people who refer to Bitcoin as a store of value are in it for the long game, and aren't really fazed by the short fluctuations. It serves a very niche portion of the population at the moment, but it does work for that niche. Things are only going to be better.
Totally agree that at the moment it is not a very good store of value because of the price fluctuations, and also agree that things will improve and the volatility will fade as the market matures.
But I would say it is a store of value right now, otherwise why are people holding it? It is a store of value that currently has some big problems that will be resolved in the longer-term, but it is still a store of value.
If gold loses 85% of its value in 12 months, then it will be no longer considered as a store of value.
I'm not sure if you have followed gold's performance throughout the last years, but it had a terrible crash from $1.9k back to $1k, where today the price of gold is hovering around the $1.5k mark.Yes... I have charts with me which track the gold prices for the last 150 years. And since gold is a long term asset, we should not be looking at these short-term variations. If you check the charts of gold over the last 150 years, it is clear that that particular asset have been successful in maintaining its purchasing power over the years. It is true that the prices fell from $1,800 per oz to $1,200 per oz. But before that, gold was priced somewhere around $600 per oz, and the current price is close to $1,500 per oz (which is just 20% lower than the ATH level).
Shouldn't we also be looking at Bitcoin as a long term asset though?
I'm not arguing that it looks unfit to be a store of value, because it fluctuates a lot more than you'd want it to. It's bound to be more stable as the market grows though, and we're actually seeing improvements on that end in recent months, outside some wild swings here and there.
Most people who refer to Bitcoin as a store of value are in it for the long game, and aren't really fazed by the short fluctuations. It serves a very niche portion of the population at the moment, but it does work for that niche. Things are only going to be better.
Such a junction of arguments above where the financial crisis is not merely an eye and behind by Crypto. I think Crypto makes my life and people better than ever and it makes crypto very useful for the future even though some people don't argue like this. In Crypto, there is certainly a name of profit and loss we can not resist the sustenance which we can later on. So if talking about a future crisis maybe just an expert who can explain more in than I do.
If gold loses 85% of its value in 12 months, then it will be no longer considered as a store of value.
I'm not sure if you have followed gold's performance throughout the last years, but it had a terrible crash from $1.9k back to $1k, where today the price of gold is hovering around the $1.5k mark.If you put the gold and Bitcoin charts side by side, you'll see how similar the price activity actually is.... the important difference is that cycles within Bitcoin play out much faster than they do within the gold market.
I don't know when gold will take out its $1.9k high.... its recent price surge was due to economical turmoil, which means that when the situation calms down again, gold will be sold off hard.
If you look at the charts going further back, gold also had a collapse in the 1990's:
https://www.thebalance.com/gold-price-history-3305646
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By 1980, traders had bid the price of gold to $594.92 as a hedge against double-digit inflation. The Fed ended inflation with double-digit interest rates but caused a recession. Gold dropped to $410 per ounce and remained in that general trading range until 1996 when it dropped to $288 per ounce in response to steady economic growth.
Given that house prices are about 10 times what they were in 1980, then gold really hasn't kept it's value compared to 1980.
Bitcoin has faced a lot of criticism in the past and present times but it is still dominating all digital currencies. The dream and mission of bitcoin still lives on in spite of the many critics from economic experts across the globe. Looking at major achievement in the world of economy, there has never been a successful story that faced no challenges or critics.
At first btc was considered as store of value and investment option by all but slowly when it grows and more people start adopting btc it became the medium of exchange and transacting business with its help and it was integral part of its growth and it became partial store of value but it is similar to fiat and other currencies in many ways.
I don’t think that bitcoin was even initially deigned to serve mainly as store of value, the main purpose of bitcoin was to serve as payment of process, but it was overtime that people begin to see it as an asset that can increase for them overtime, which they started to accept it as store of value gradually, but this was not supposed to be the main reason why we should use bitcoin.The main purpose of bitcoin that satoshi created is really this peer to peer payment system, that would give people lots of independence on their financial transaction, but as we take this, it is meant to start having its second benefit as store of value, which I am sure that till bitcoin becomes a little bit stable before we can actually start seeing this reflect in the market.
Bitcoin is partly a currency at the same time partly a store of value. Bitcoin has transformed into different things depending on the way people take it. Bitcoin is also viewed by others as securities at the same time a digital gold. Others treat Bitcoin as a speculative asset. After several years, Bitcoin has deviated a lot from the original Bitcoin according to the whitepaper of Satoshi Nakamoto. This is not totally bad for me for as long as it remains a currency more than any other.
investing in crypto currencies has many ways and it all depends on the investors themselves with the belief they are entitled to choose a way to invest and maybe in conditions like now investors must be clever in utilizing every opportunity to invest in crypto currencies and each choice will certainly bring benefits.
Bitcoin is partly a currency at the same time partly a store of value. Bitcoin has transformed into different things depending on the way people take it. Bitcoin is also viewed by others as securities at the same time a digital gold. Others treat Bitcoin as a speculative asset. After several years, Bitcoin has deviated a lot from the original Bitcoin according to the whitepaper of Satoshi Nakamoto. This is not totally bad for me for as long as it remains a currency more than any other.
If gold loses 85% of its value in 12 months, then it will be no longer considered as a store of value.
I'm not sure if you have followed gold's performance throughout the last years, but it had a terrible crash from $1.9k back to $1k, where today the price of gold is hovering around the $1.5k mark.Yes... I have charts with me which track the gold prices for the last 150 years. And since gold is a long term asset, we should not be looking at these short-term variations. If you check the charts of gold over the last 150 years, it is clear that that particular asset have been successful in maintaining its purchasing power over the years. It is true that the prices fell from $1,800 per oz to $1,200 per oz. But before that, gold was priced somewhere around $600 per oz, and the current price is close to $1,500 per oz (which is just 20% lower than the ATH level).
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