Topic: Can a coin that is primarily a store-of-value succeed? (Read 2365 times)

So if bitcoin becomes a primarily store-of-value coin, or if an altcoin that pops up in the future decides to make itself primarily for the use of storing value, will the amount of transactions be able to support miners, when the block reward drops off, and only transaction fees are left? If not enough transactions happen, what will happen to the network security? Will the big players spend their own money to secure the network to make sure the value they have in the coin is safe? Or will transaction fees be very high? Or will the network be vulnerable?...

...Also, if an altcoin is too inflationary, obviously it won't work well as a store of value. But perhaps a small amount of inflation could work; if we could estimate the amount of coins lost (through mistakes, death, or whatever else) per year, and have the emissions match that amount, we are essentially keeping the amount of coins constant (or close to it). Miners will still get rewards, and we won't end up with a grand total of 1 satoshi that isn't lost, from 21mil coins in the future.

Ok, sure.


You know how they often compare crypto to a gold?

One of the major function of gold is to be a store of value, in other words a precious metal you can turn your assets into and know that you ll be able to retain that value over decades.
The same idea s behind several cryptocurrencies, I would say most of them besides those with high inflation rate e.g 700%+

People often think that the primary reason for crypto to succeed is to get accepted by thousands of small retailers and get spent EVERY DAY. This might not be true.
I personally chose my currencies to act as store of value, I do use some of them to purchase things I need but most of them I hoard like a hamster. Let us be honest, most of us do the same.
The only difference is that some people do it solely because they expect the price of their portfolio to apprecaiate while other, like me, do this due to this additional reason of PRESERVING current assets over time.

I like gold but I m into tech and I need something with characteristics of a precious metal which can be turned into FIAT fast, which is easy to transfer, which is safe and secure.

Why DMD Diamond? Well, its a 50% annual PoS coin. In other words, it s a gold bar which generated small gold bars over time.  
Also, it s a coin with a very limited and scarce supply as a real diamond should be. PoW phase reward just got reduced from 1 DMD per block to 0.2 DMD per block.

So, yes, I believe crypto can be used as a store of value. Whether this is its primarily function, it depends on the person who holds it.

i can't recall any service like that, and it could potentially go against the bitcoin decentralization, because a service like that will probably be centralized...

i can't recall any service like that, and it could potentially go against the bitcoin decentralization, because a service like that will probably be centralized...

why don't you use a bitcoin service that locks your bitcoins value? that way you get a store of value with bitcoin

Yes why not, but you can't say :


If you want to store value, the best choice at the moment is the gold. If you talk in the cryptocurrency world, there is not exist a coin that can considered primarily store of value". Just my opinion and maye I'm wrong.

People like choice and people want to have choices. The same goes for drinks and crypto.
I personally hold 3 additional cryptocurrencies besides BTC and each of them s got some kind of unique trait which I like. Not to mention the fact it s much easier to make money on alts then on BTC.

Yes it can. DMD Diamond s primairly store of value and it s going to be big. Yes, I have invested in it and yes you can consider this as a promotion. However, if I think it s smart to invest my own money in it, I see no reason why I would not recommend it to other people.

still the most succeful is coke, the other are just niche market, the same with alt and bitcoin, bitcoin is the primary and most accepted while alt are just for the minority who got bored to play with bitcoin only

also this isn't exactly a good comparison, because bitcoin has utility, those are only "food" instead

Its the same as saying it pointless to have Pepso, Fanta and Sprite since we have Coke. Well, I like my choices. I m sure other 2 million supporters of other alts also like their choices. Can BTC stake?

Op, so are you worried about that Bitcoin could in the future become deflationary spiral, because we have finite coins plus lost coins means deflationary spiral - some people seem to think that way.
Is that your problem? First and foremost I am not sure what is the deal with lost bitcoins, it is normal, it was happening and it always will. There is no problem with it. Satoshi predicted this and said it is perfectly fine as lost coins only make everyone else's coins worth slightly more...

So if bitcoin becomes a primarily store-of-value coin, or if an altcoin that pops up in the future decides to make itself primarily for the use of storing value, will the amount of transactions be able to support miners, when the block reward drops off, and only transaction fees are left? If not enough transactions happen, what will happen to the network security? Will the big players spend their own money to secure the network to make sure the value they have in the coin is safe? Or will transaction fees be very high? Or will the network be vulnerable?

Yes, scam and ponzies are the biggest enemy of Bitcoin. So many good people have left this industry due to human scum ripping them off.

Gold have little intrinsic value indeed. It's is just psychology, social consensus and most importantly tradition. Gold have been currency for nearly three thousand years so ppl traditionally think it has a great value on it's own (rarity, looks nice, etc). BTC have no such tradition, the social consensus isn't widespread enough yet, and because of volatility and the lot's of scams psychology even working against it.

Can a coin that is primarily a store-of-value succeed?