A Great Store of Value is Enough
Bitcoin hit another all time high today, breezing past $5000 all the way to $5200 while pulling back a bit as I write this post, which has many scratching their heads as to why. Even people in the crypto community don’t seem to understand why bitcoin keeps going up when many other coins have a lot of extra features and added properties. There is one simple thing people don’t understand and that is even if bitcoin did nothing but act as a good store of value, it would be worth a massive amount of money.
Right now the market cap is miniscule compared to the amount of money in the investment world that is simply looking for a store of value. Bonds, TIPs , gold and Tbills all try to do something which is simply to counteract inflation, and in many cases they fall short due to flaws. This has people with more money than you and I can imagine, spending hundreds of millions on paintings, fine wines, collectable cars, ect. Simply because they have so much money they cant find enough places to store it.
When you are that rich the stock market and real estate aren’t enough to diversify your risk and having a way to store value and keep it off the grid is a real benefit. One of the next big moves forward for bitcoin will be truly anonymous use and its being worked on as we speak. Any time you give someone the ability to purchase assets off the grid that can be used anonymously to purchase other items and act simply as a store of value, you have a triple threat.
An anonymous spendable store of value is the holy grail when it comes to what many people who hide their money want. It has been a goal that people have tried to achieve for as long as taxes have existed and we have a real shot at it becoming a reality in the next 5 or so years. There is so much money looking to be hidden and the market cap of bitcoin and crypto currency is so tiny in the grand scheme of things , that one big actor could move the entire market.
Not one single big actor is coming though, many are and they are going to flood through the gate. The signs are on the wall, big money is coming and if that happens the price is going to levels that many thought would be unreachable for a very long time if ever. There are ways to hurt bitcoin in the short term, but in the long term its simple value proposition of a good store of value is extremely attractive to many people.
Thanks to @Elyaque for the badges
It is nice to read a well though out though (no pun intended).
I agree with If Bitcoin is used as just a store of value ... we should see their value going up during recessions and down during boom times...on the condition that bitcoin economy is a smaller part of the whole economy and most prefer "cash out" to more useful currency during boom times.
However I can not agree with "If they're used only as a means of exchange then we should see the opposite."
wow that's some great information @calaber24p, history always repeat itself you remember facebook when they are at early stage no body will know it how ever when there users increased they goes into viral thing so i believe with the adoption of bitcoin and other crypto currencies bitcoin users will become more and more and it certainly helps the bitcoin price as more peoples safe their assets in shape of digital gold. thanks for sharing
Meanwhile, the decentralization of the core engineering and the nucleus of Qin Block Technology teach Central and Banks lessons! The future of payment in humans is found in digital currencies in addition to the disappearance of a range of jobs in the coming years because of the Internet block technology Shin,
If you are a digital trader and a lover of the fourth technological revolution, you know that you represent 0.0006% of those who absorb the future.
To the limit now less than 5 million inhabitants of the earth out of 7 billion and a half of using digital currency!
No Machsad calculates and calculates the proportion of your share in Tunisia, Rak you are the first!
The future hides a lot
Yeah I read in the future bitcoin will be used for large transactions such as house purchases or things of that nature. There's no need for bitcoin to be used on a daily basis because there are newer quicker coins out there for that. BTC will be the coin for wealth storage as you stated.
a very real post
this really makes me hopeful; fingers crossed!!
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I agree about half way with your post. Store of value is the biggest value driven in Bitcoin but also just as relevant for currencies such as DASH or ETH. Both have growing demand and extremely limited supply like gold. They are much faster, cheaper and have many use cases beyond store of value. The ultimate crypto will built in governance, self-funding and extremely user friendly wallets.
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