Why Bitcoin Is An Attractive Store-Of-Value Currency

Bitcoin's ability to be used to purchase goods and services makes it a desirable store of value currency. If you're prepared to take the effort to convert them into a local currency, you may also use bitcoins as a means of trade, however this is not how most people use them.

Speculation is the main use for bitcoin. When a person needs cash, they may exchange their bitcoins into dollars or euros later. Alternatively, they can retain their bitcoins in bitcoin wallets and collect interest on them. This is comparable to the practice of storing gold in a safe at home and selling it when necessary.

However, what really draws bitcoins as a store of value is their ability to be used as payment for products and services. The value of your investment would decrease much more quickly than it has since 2010, since the price of each coin would plummet if no retailers accepted bitcoins as payment.