Bitcoin is a reliable store of value - what’s a reliable store of value for you?

[TravelMug]

I guess we might be wrong as we might be comparing it to gold as store of value? Gold has been with us for centuries and I would say has been tested like in WWII wherein it was being used by countries for reconstruction. So it could be a good store of value plus it appreciates overtime. While compare it to bitcoin which is very young and still in it's infancy and the best case for it is the pandemic. But then again, it's very volatile so it won't fall on the definition of store of value, but we can say that it is value is derived from being durable and scarce.

[Fundamentals Of]

In many aspects, Bitcoin is better than gold.

1. Gold is scarce, Bitcoin has a fixed amount.
2. Gold is hard to store, Bitcoin is stored in the blockchain, like in thin air.
3. It is hard to cross international borders carrying gold. With Bitcoin, nobody knows you've got some.
4. Gold could easily be seized. With Bitcoin, it could die with you.
5. With gold, there is the possibility that miners could go out of space and harvest all they want. With Bitcoin, there will only be 21 million even after a thousand years.

So we could probably say that Bitcoin is a better and more reliable store of value than gold.

[kro55]

In many aspects, Bitcoin is better than gold.

1. Gold is scarce, Bitcoin has a fixed amount.
2. Gold is hard to store, Bitcoin is stored in the blockchain, like in thin air.
3. It is hard to cross international borders carrying gold. With Bitcoin, nobody knows you've got some.
4. Gold could easily be seized. With Bitcoin, it could die with you.
5. With gold, there is the possibility that miners could go out of space and harvest all they want. With Bitcoin, there will only be 21 million even after a thousand years.

So we could probably say that Bitcoin is a better and more reliable store of value than gold.

Have you considered the risk in the internet space?, The internet is considered a dangerous place that is always lurking and attacking us even when we don't know we are being attacked. Maybe you have a hardware wallet that is secure enough to store bitcoins but that doesn't mean you will be 100% safe holding bitcoin. Not to mention the accidents that cause you to lose your private key due to natural disasters, fires... everyday accidents can still cause you to lose your private key. Can't say which is more secure, it all depends on how we store them.

Bitcoin is a very volatile asset, gold is much more stable so I don't think bitcoin is a better store of value than gold. Bitcoin is a better investment than gold.

[pieppiep]

I still want to keep my money in bitcoins and even though the price will still be as it is now, up and down, I'm not afraid because it's just a part of bitcoin that will probably always be there until later. If you are afraid to save money, maybe you need gold as a place whose price will not change much compared to other types of investments.

As long as you are not going to sell it in a bear market or at least a time that you will never profit then your money is good with it as store of value.

Hopefully, I can have strong hand to still hold my coins, especially bitcoin. And yes, the bear market still appear on the market and that can make us to become panic. But with experienced we had, we do not have to feel panic instead calm down for a while.

Bitcoin is a unique store of value because its price can go down and up, and we never know when that will happen. Apart from that, the rarity of bitcoin is one thing that makes it unique so I think bitcoin is a store of value as well as gold.

Again, still boils down on how you are going to put your money on it to become a store of value. So it's really up to us per individual on how we are going to make it our own store of value. Because if we look at the price it is very volatile, hence could not be classified per se at SoV.

To have bitcoin as a store of value is an option for people, especially if they want to earn big profits in the future. But if they still have doubts about bitcoin, they shouldn't try to invest in it because it will make them worry about seeing the price fluctuate.

[el kaka22]

As long as we have "diamond hands" as they call it these days, then we can make a profit from bitcoin. Bear market is not a reason to sell your coins, if anything it is a reason to buy more bitcoins right now. Haven't we said "buy low, sell high" enough times already? You buy as many as you can during bear run, and you sell as much as you can during bull run and keep repeating that and eventually you will have a lot of money.

I am the type of person who buys at bear and buys at bull, I like to have 1 bitcoin before I die, but I would understand selling at the top in order to buy even more when it goes down, I just don't believe in myself to know when it is at the top.

[Don Pedro Dinero]

Being a store of value is not a subjective matter. There is an objective definition of what it is:

'A store of value is any commodity or asset that would normally retain purchasing power into the future and is the function of the asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved.

The most common store of value in modern times has been money, currency, or a commodity like a precious metal or financial capital. The point of any store of value is risk management due to a stable demand for the underlying asset.'

Bitcoin is a good store of value, or we could say the best at present, and it does not look like it is going to change this in the future. What happens is that in the bear market that we are in, there are people questioning it,but if bitcoin was not a store of value due to the behaviour of the price this year, gold would not be either. We have to look at the long term when we talk about this.

[Smack That Ace]

Being a store of value is not a subjective matter. There is an objective definition of what it is:

'A store of value is any commodity or asset that would normally retain purchasing power into the future and is the function of the asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved.

The most common store of value in modern times has been money, currency, or a commodity like a precious metal or financial capital. The point of any store of value is risk management due to a stable demand for the underlying asset.'

Bitcoin is a good store of value, or we could say the best at present, and it does not look like it is going to change this in the future. What happens is that in the bear market that we are in, there are people questioning it,but if bitcoin was not a store of value due to the behaviour of the price this year, gold would not be either. We have to look at the long term when we talk about this.

Bitcoin is still very new compared to gold or currency and we cannot be sure what the future of bitcoin will be. We are bitcoin investors so it is completely understandable to believe in bitcoin, but to be fair, compared to gold and other assets, bitcoin is still riskier.
Bitcoin can still be a store of value but to say it is the best is inaccurate. To be considered a secure store of value, it must be stable, low-volatility, and legally recognized worldwide.

[buwaytress]

I wouldn't say reliable, at least, not for the medium term even (and for me that's 5 years or so).

I'm a Bitcoin guy, DCAing for as long as I remember, and have had to liquidate significant sums due to emergencies and while it's worked out for me overall, I can't imagine if my journey had started say in 2017 and then then I needed to rely on it over the next 2 years. Would have been a huge loss.

And if you can't rely on something to retain (not appreciate) value in a year or two, I don't think you can call it reliable, can you?

P.S. I do think it's a great store of value long term, always up eventually!

[wagmi]

In many aspects, Bitcoin is better than gold.

1. Gold is scarce, Bitcoin has a fixed amount.
2. Gold is hard to store, Bitcoin is stored in the blockchain, like in thin air.
3. It is hard to cross international borders carrying gold. With Bitcoin, nobody knows you've got some.
4. Gold could easily be seized. With Bitcoin, it could die with you.
5. With gold, there is the possibility that miners could go out of space and harvest all they want. With Bitcoin, there will only be 21 million even after a thousand years.

You are very right here, Bitcoin is technically advanced compared to Gold because Gold is just naturally existing.

But Bitcoin was customized by Satoshi, so he could look at Gold and improve Bitcoin's properties.
He looked at Gold and made Bitcoin more scarce,
He made Bitcoin more fungible and easier to send
He created an robust network of PoW

Bitcoin is advanced Gold, one could say. 

[GreatArkansas]

As long as we have "diamond hands" as they call it these days, then we can make a profit from bitcoin. Bear market is not a reason to sell your coins, if anything it is a reason to buy more bitcoins right now.
(....)

This does not define how reliable store value is. It does not make sense with this kind of mindset. It seems you are just investing which investmen comes with risk and profits over the time.
So, store of value for me is something you not depreciating the value of it over the time regardless of other effects or financial system catastrophic.

[serjent05]

As long as we have "diamond hands" as they call it these days, then we can make a profit from bitcoin. Bear market is not a reason to sell your coins, if anything it is a reason to buy more bitcoins right now.
(....)

This does not define how reliable store value is. It does not make sense with this kind of mindset. It seems you are just investing which investmen comes with risk and profits over the time.
So, store of value for me is something you not depreciating the value of it over the time regardless of other effects or financial system catastrophic.

Same here, that is a reliable store of value for me.  With that, I  believe Bitcoin at its current condition isn't a good or reliable store of value.  Don't misunderstand, I also see Bitcoin as a store of value but  I think its high volatility makes it unreliable as a store of value.  This is another reason why most financial institutions don't consider Bitcoin as money.  Because of its poor performance when it comes to the store of value.

[samcrypto]

As long as we have "diamond hands" as they call it these days, then we can make a profit from bitcoin. Bear market is not a reason to sell your coins, if anything it is a reason to buy more bitcoins right now.
(....)

This does not define how reliable store value is. It does not make sense with this kind of mindset. It seems you are just investing which investmen comes with risk and profits over the time.
So, store of value for me is something you not depreciating the value of it over the time regardless of other effects or financial system catastrophic.

Store of value which means appreciate over time and with Bitcoin, there’s no assurance for that and beside that is not the real purpose of Bitcoin before. For me, if there’s too much volatility I can’t consider that as a good store of value, maybe it can appreciate in price but there’s still a huge risk that it can go deeper so be careful on storing too much of it. Gold might still be the best option to many, i can agree on that.

[Fundamentals Of]

As long as we have "diamond hands" as they call it these days, then we can make a profit from bitcoin. Bear market is not a reason to sell your coins, if anything it is a reason to buy more bitcoins right now.
(....)

This does not define how reliable store value is. It does not make sense with this kind of mindset. It seems you are just investing which investmen comes with risk and profits over the time.
So, store of value for me is something you not depreciating the value of it over the time regardless of other effects or financial system catastrophic.

Store of value which means appreciate over time and with Bitcoin, there’s no assurance for that and beside that is not the real purpose of Bitcoin before. For me, if there’s too much volatility I can’t consider that as a good store of value, maybe it can appreciate in price but there’s still a huge risk that it can go deeper so be careful on storing too much of it. Gold might still be the best option to many, i can agree on that.

I don't think so. Store of value doesn't mean it should appreciate over time. Quite literally, it simply means it is something that stores the value. So if you want to avoid losing your value, then store it in something. It's different if you want to make a profit. That's investment. It is enough for something, even though it does not appreciate over time, to be a store of value for as long as it also does not depreciate over time. And store of value more or less implies long periods of time. If something keeps the value for a short time only, it is not a store of value.

[wxa7115]

As long as we have "diamond hands" as they call it these days, then we can make a profit from bitcoin. Bear market is not a reason to sell your coins, if anything it is a reason to buy more bitcoins right now.
(....)

This does not define how reliable store value is. It does not make sense with this kind of mindset. It seems you are just investing which investmen comes with risk and profits over the time.
So, store of value for me is something you not depreciating the value of it over the time regardless of other effects or financial system catastrophic.

Store of value which means appreciate over time and with Bitcoin, there’s no assurance for that and beside that is not the real purpose of Bitcoin before. For me, if there’s too much volatility I can’t consider that as a good store of value, maybe it can appreciate in price but there’s still a huge risk that it can go deeper so be careful on storing too much of it. Gold might still be the best option to many, i can agree on that.

Whether people believe that bitcoin is a store of value or not what matters is that people at least make the effort to put their money in an asset which can keep their value over the long term, whether it is bitcoin, gold, silver or real state it doesn't matter, what matters is that people protect themselves.

And this is more important now than ever because as we can see the inflation is very high and despite the efforts of the governments to try to make it to go down they have failed to do so, and who knows if they will be successful, so for the time being what matters is to protect ourselves in the case things get even more difficult from now on.

[fuguebtc]

As long as we have "diamond hands" as they call it these days, then we can make a profit from bitcoin. Bear market is not a reason to sell your coins, if anything it is a reason to buy more bitcoins right now.
(....)

This does not define how reliable store value is. It does not make sense with this kind of mindset. It seems you are just investing which investmen comes with risk and profits over the time.
So, store of value for me is something you not depreciating the value of it over the time regardless of other effects or financial system catastrophic.

Store of value which means appreciate over time and with Bitcoin, there’s no assurance for that and beside that is not the real purpose of Bitcoin before. For me, if there’s too much volatility I can’t consider that as a good store of value, maybe it can appreciate in price but there’s still a huge risk that it can go deeper so be careful on storing too much of it. Gold might still be the best option to many, i can agree on that.

Whether people believe that bitcoin is a store of value or not what matters is that people at least make the effort to put their money in an asset which can keep their value over the long term, whether it is bitcoin, gold, silver or real state it doesn't matter, what matters is that people protect themselves.

And this is more important now than ever because as we can see the inflation is very high and despite the efforts of the governments to try to make it to go down they have failed to do so, and who knows if they will be successful, so for the time being what matters is to protect ourselves in the case things get even more difficult from now on.

Inflation has happened many times in the past and one thing is for sure inflation will have to come down, one way or another. Deflation is the government's job, they have to deal with it, or their power will disappear.

But what is the cost to reduce inflation? and we will certainly be the hardest hit in any case so it is our duty to protect ourselves, should not trust and depend too much on the government. Once they can't bring inflation down, they'll do whatever it takes to bring it down, maybe they'll use us to bring it down.
Gold or bitcoin is fine, even any asset that we feel is safe with us.

[wxa7115]

Whether people believe that bitcoin is a store of value or not what matters is that people at least make the effort to put their money in an asset which can keep their value over the long term, whether it is bitcoin, gold, silver or real state it doesn't matter, what matters is that people protect themselves.

And this is more important now than ever because as we can see the inflation is very high and despite the efforts of the governments to try to make it to go down they have failed to do so, and who knows if they will be successful, so for the time being what matters is to protect ourselves in the case things get even more difficult from now on.

Inflation has happened many times in the past and one thing is for sure inflation will have to come down, one way or another. Deflation is the government's job, they have to deal with it, or their power will disappear.

But what is the cost to reduce inflation? and we will certainly be the hardest hit in any case so it is our duty to protect ourselves, should not trust and depend too much on the government. Once they can't bring inflation down, they'll do whatever it takes to bring it down, maybe they'll use us to bring it down.
Gold or bitcoin is fine, even any asset that we feel is safe with us.

It is true that at some point the inflation we are going through will go down, but we do not know what it will take for us to reach that point, and since we do not know what it is going to take then we need to do what we can to protect ourselves.

Unfortunately people are so indebted already that most of them simply do not have enough money to invest in anything, which means that they are at complete mercy of the government, and if they fail to lower inflation during the next months and years they will suffer tremendously because of it.

[pooya87]

The problem with bitcoin is that its price is not set completely based on its value, but mostly based on speculation on centralized exchanges that are not that big to prevent market manipulation. This means we always see the price either go higher than the intrinsic value (like the bubbles we have seen eg. $20k in 2017) or go below the intrinsic value (like the current state).

As long as this market manipulation has significant effects on the market, the "store of value" characteristic of bitcoin is not a strong one in my opinion. But regardless of that, bitcoin remains the global payment system providing a very valuable utility.

[OgNasty]

When I think of a store of value, I think real estate. It’s hard to make a case that all the materials used, included land, and the use case of a home is not valuable. The only thing that hurts real estate as a store of value in my opinion is the upkeep costs including taxes. That is why I feel precious metals are also a good store of value. When I think of stocks and Bitcoin, I think growth potential, not store of value.

[palle11]

When I think of a store of value, I think real estate. It’s hard to make a case that all the materials used, included land, and the use case of a home is not valuable. The only thing that hurts real estate as a store of value in my opinion is the upkeep costs including taxes. That is why I feel precious metals are also a good store of value. When I think of stocks and Bitcoin, I think growth potential, not store of value.

The taxes in homes or real estate are to be considered as maintenance not real a cost because if we look deeply the estate appreciation value is not stagnant. The house you bought for $3 million dollar this year won't cost lesser two years in the future. This is also like bitcoin, metal or stock that hodlers enjoy during volatile but estate has lower risk especially when insured.

[Silberman]

When I think of a store of value, I think real estate. It’s hard to make a case that all the materials used, included land, and the use case of a home is not valuable. The only thing that hurts real estate as a store of value in my opinion is the upkeep costs including taxes. That is why I feel precious metals are also a good store of value. When I think of stocks and Bitcoin, I think growth potential, not store of value.

The taxes in homes or real estate are to be considered as maintenance not real a cost because if we look deeply the estate appreciation value is not stagnant. The house you bought for $3 million dollar this year won't cost lesser two years in the future. This is also like bitcoin, metal or stock that hodlers enjoy during volatile but estate has lower risk especially when insured.

To this we need to add that unlike gold real estate can pay for all of those costs if you are willing to rent the property, so not only you have an asset that can follow inflation closely but one which can produce cash flow on its own, this is incredibly valuable as during a crisis having as many sources of income is important, so real estate gives you the ability to diversify your income, which during a crisis can be a real lifesaver.