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

[yhiaali3]

All conditions exist for Bitcoin to be considered a store of value except these:

It should be accepted and people should regard it as a store of value.

So far people do not accept bitcoin on a large level due to governments rejecting bitcoin so far, bitcoin is not legal in many countries of the world so people are afraid to buy and store it because of the fear that they will get a violation and a legal fine as a result of violating the law, their bitcoin may also be confiscated As it happened in some countries.
So first we need to accept bitcoin around the world by all governments or else we are missing out on an important condition.

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[bestcoins1]

So far people do not accept bitcoin on a large level due to governments rejecting bitcoin so far, bitcoin is not legal in many countries of the world so people are afraid to buy and store it because of the fear that they will get a violation and a legal fine as a result of violating the law, their bitcoin may also be confiscated As it happened in some countries.
So first we need to accept bitcoin around the world by all governments or else we are missing out on an important condition.

Can you please mention which countries have confiscated Bitcoins from their citizens or from the people who own them?
Because in the country where I live now Bitcoin is not banned as long as it is not brought into payment terms, because here Bitcoin is legal as a commodity asset and I think there are also several other countries that do not prohibit Bitcoin to be used as a commodity asset.

And I think you also know that now there are several countries that have legalized Bitcoin and adopted it into payment terms like what happened in El Salvador. Indeed what you say looks better because if all the governments of the countries in the world want to legalize Bitcoin for everything, then the growth of Bitcoin and cryptocurrencies will obviously be better, but it will make it a little difficult for the country's currency to be killed slowly by Bitcoin and cryptocurrencies.

[LittleBitFunny]

Indeed what you say looks better because if all the governments of the countries in the world want to legalize Bitcoin for everything, then the growth of Bitcoin and cryptocurrencies will obviously be better, but it will make it a little difficult for the country's currency to be killed slowly by Bitcoin and cryptocurrencies.

Bitcoin does not make it difficult for any country's currency or gradually replace it, if you think that will happen the government will never accept or legalize bitcoin. Once the government legalizes bitcoin, it will inevitably come with draconian regulations to best control bitcoin. If once they find out that the legalization of bitcoin harms fiat or rather directly affects their power, they will ban it immediately.
For bitcoin to grow and be widely accepted, the best way is to get legal consent from the government and let's hope that bitcoin will be another method, alternative, besides fiat.

[yhiaali3]

Can you please mention which countries have confiscated Bitcoins from their citizens or from the people who own them?
Because in the country where I live now Bitcoin is not banned as long as it is not brought into payment terms, because here Bitcoin is legal as a commodity asset and I think there are also several other countries that do not prohibit Bitcoin to be used as a commodity asset.

Yes, I remember that it happened at least once in Ireland as well as in the US, and these confiscated bitcoins were auctioned more than once.
See here for example:

The IRS has seized $1.2 billion worth of cryptocurrency this fiscal year – here's what happens to it

source:
https://www.cnbc.com/2021/08/04/irs-has-seized-1point2-billion-worth-of-cryptocurrency-this-year-.html

[Oshosondy]

Bitcoin does not make it difficult for any country's currency or gradually replace it, if you think that will happen the government will never accept or legalize bitcoin. Once the government legalizes bitcoin, it will inevitably come with draconian regulations to best control bitcoin. If once they find out that the legalization of bitcoin harms fiat or rather directly affects their power, they will ban it immediately.
For bitcoin to grow and be widely accepted, the best way is to get legal consent from the government and let's hope that bitcoin will be another method, alternative, besides fiat.

Not all countries accept Bitcoin, but only just very few countries which are not up to 15 in total that banned bitcoin in a way it is not seen legal. Some of these countries are afraid of bitcoin, but in reality, it is not like that. See country like El Salvador, their government made bitcoin a legal tender, allowing it to be used for remittance, payment of salary, and p2p payments, yet El Salvador still prefer to save more in US dollars after making bitcoin transaction. I do not think people themselves have the mind set in a way bitcoin would be able to replace fiat.

[Swordsoffreedom]

Bitcoin does not make it difficult for any country's currency or gradually replace it, if you think that will happen the government will never accept or legalize bitcoin. Once the government legalizes bitcoin, it will inevitably come with draconian regulations to best control bitcoin. If once they find out that the legalization of bitcoin harms fiat or rather directly affects their power, they will ban it immediately.
For bitcoin to grow and be widely accepted, the best way is to get legal consent from the government and let's hope that bitcoin will be another method, alternative, besides fiat.

Not all countries accept Bitcoin, but only just very few countries which are not up to 15 in total that banned bitcoin in a way it is not seen legal. Some of these countries are afraid of bitcoin, but in reality, it is not like that. See country like El Salvador, their government made bitcoin a legal tender, allowing it to be used for remittance, payment of salary, and p2p payments, yet El Salvador still prefer to save more in US dollars after making bitcoin transaction. I do not think people themselves have the mind set in a way bitcoin would be able to replace fiat.

As of now, people still don't want to save with bitcoin, but they prefer USD or gold as a means of savings, which is understandable, because bitcoin's volatility is too high. It can be said that bitcoin is a potential investment as it can yield great returns due to its volatility, but to see it as a store of value is very risky. While USD is still the main currency of the world and bitcoin price is still measured in USD, the stability of USD is managed by the US government, as can be seen in the current crisis, USD is considered a safe asset. People will tend to save in bitcoin only if it is a stable and secure asset with government legitimacy.

[lixer]

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.

Real estate could be going up right now and that's understandable because there is inflation, but the cost of keeping the house together should be calculated in when you are selling for sure. If you buy a house for a million dollars, make a half a million dollars cost to keep it for 5 years or 10 years or whatever, and then sell it for 3 million dollars, you made 2x profit not 3x profit and that's important to keep in mind.

Some houses gain x10+ in 10 years, and some only gain 2x, it depends on where you bought the house. Mine gained 10x for example in the last 10 years, and that's a great increase for me but I also spent a good chunk recently as well, I would put that into calculation.

[_BlackStar]

There are many people who think that bitcoin is a good store of value because of the potential for growth in its value over the long term rather than the innovation that comes with it. If indeed that is the basic reason why bitcoin is called a good store of value then gold and other real investment assets should be the same too.

Even if these bitcoin are scarce because the supply is fixed at 21 million bitcoin, then we must realize that Bitcoin is a distributed currency system, if demand drops to almost non-existent, then the certainty is that the currency will still crash. People expect its value to keep increasing in the long term as bitcoin is getting more popular it will affect the demand and supply. But one thing that has become a fact is that the value of bitcoin can go down when the demand drops. There is no 100% safe in the world, you still have to think about the risks because supply and demand will not be stable forever.

[Poker Player]

There are many people who think that bitcoin is a good store of value because of the potential for growth in its value over the long term rather than the innovation that comes with it. If indeed that is the basic reason why bitcoin is called a good store of value then gold and other real investment assets should be the same too.

It's just that thinking that Bitcoin is not a good store of value because the price has dropped this year is silly. The price of gold has also been falling since March. The question is whether it maintains purchasing power or even increases it in the medium to long term, and the answer, looking at its history is yes.

[rat03gopoh]

Certainly gold, the ideal store of value.

The fact is that people still can't distinguish the goal between storing value and expecting value growth which still carries risk. Bitcoin has high volatility which is suitable for the second purpose, bitcoin doesn't meet these conditions:

It should be accepted and people should consider it as a store of value.

Some percent of people in the world don't even admit that bitcoin is a legal currency in their perspective

[_BlackStar]

It's just that thinking that Bitcoin is not a good store of value because the price has dropped this year is silly.

Yes of course, it is just the opposite of my statement above while I want to convey for the same purpose.

The price of gold has also been falling since March. The question is whether it maintains purchasing power or even increases it in the medium to long term, and the answer, looking at its history is yes.

We can find various facts in the data from its price history so it will definitely help us to gain confidence that this bitcoin really deserves to be considered a store of value asset. About the price and the potential future price is something that may fluctuate due to volatility, so I will not compare it to other assets such as gold. But bitcoin can be the best choice instead of fiat which is losing its value.

[uneng]

Indeed what you say looks better because if all the governments of the countries in the world want to legalize Bitcoin for everything, then the growth of Bitcoin and cryptocurrencies will obviously be better, but it will make it a little difficult for the country's currency to be killed slowly by Bitcoin and cryptocurrencies.

Bitcoin does not make it difficult for any country's currency or gradually replace it, if you think that will happen the government will never accept or legalize bitcoin. Once the government legalizes bitcoin, it will inevitably come with draconian regulations to best control bitcoin. If once they find out that the legalization of bitcoin harms fiat or rather directly affects their power, they will ban it immediately.
For bitcoin to grow and be widely accepted, the best way is to get legal consent from the government and let's hope that bitcoin will be another method, alternative, besides fiat.

Yes, the less intervention from governments over bitcoin the better it will be for adopters. We don't need governments' permission to deal with btc. It's a person to person decentralized currency which can be also used as store of value if the individuals wish. Even if governments try to forbid this practice, people will still be able to use bitcoin, because governments don't have any power over blockchain and internet, as they are also decentralized. Of course they can punish citizens who doesn't follow their regulations, but it's still possible anyway.

[Piesel]

But scarcity is most important for it. We can also see some NFT's are very scarce but nobody will consider NFT as a store of value because NFT is not fungible.
In addition, people need a perspective to sell it for a higher price again.

It is important, undoubtedly. But again, scarcity alone doesn't automatically make something a store of value, or even worth anything in the first place; especially for something digital.

I agree with what mk4 said, scarcity alone does not make a good store of value as there are millions of scarce objects that do not have any good value and can't be classified as a good store of value but there is no doubting the fact that the scarcity a nd limited 21 million circulating supply of Bitcoin made aid it hedge against inflation.

Bitcoin is a digital gold that so decentralized and it price have consistently risen as an asset and a store of value just like gold and any other commodities in the asset class, several factors make an asset a good store of value but scarcity is not among those features.
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Some things are scarce but worthless!2

[Mpamaegbu]

Bitcoin isn't a store of value if you asked me. This is because it's subject to fluctuations and volatility. Anything can happen to make price go wry with it. Pointedly, we've to quickly remember that there were those who bought Bitcoin at ATH in 2021 and of the fact that price has since then not gone back to that range. To those ones, I'm not sure the value of what they invested has yet been recovered. What store of value can that be then? For me, Bitcoin is best described as a speculative asset. I use stable coins as my store of value.