Bitcoin as a store value in comparison to traditional assets

[karmamiu]

First and foremost, it's crucial to comprehend what makes an asset a reliable store of value. An asset that retains its purchasing power over time and is resistant to depreciation due to inflation is said to be a store of value. A good store of value is also frequently employed as a hedge against economic and geopolitical risks because it is widely seen as a safe haven asset.

There are a number of things to take into account when evaluating Bitcoin's potential as a store of value. First off, there is a limited supply of Bitcoin; 21 million coins are anticipated to be in circulation. As a result, it is resistant to inflationary pressures because a central authority cannot arbitrarily raise the supply.

In addition, Bitcoin is decentralized and runs without the aid of any centralized organization or state. This grants it a level of freedom and autonomy not found in traditional assets, which are governed by the laws and rules of financial institutions and governments.

The mobility and ease of transfer of Bitcoin are important factors in its potential as a store of value. Bitcoin is a practical asset for both individuals and institutions since it can be transferred easily across borders and stored in a variety of digital wallets.

But, it's crucial to keep in mind that Bitcoin is still a young and unstable asset, and that its value can change a lot quickly. This makes it a riskier investment than older, more reliable ones like gold, which has a long history of serving as a haven asset.

Furthermore, compared to conventional assets like gold and fiat currency, which are widely recognized and accepted as stores of value, Bitcoin's adoption and acceptance as a store of value is still limited.

In conclusion, it is crucial to remember that Bitcoin is still a relatively new and volatile asset, while having many potential benefits as a store of wealth, including its limited quantity, decentralization, and mobility. The need of carefully assessing one's risk tolerance and diversifying one's investments across a variety of assets, including both traditional and digital assets, cannot be overstated.

[lovesmayfamilis]

[Cantsay]

[~snipped~]

I just copied the title of Op and run it with chatGPT and if you check the result you'll see that they're same content with different wordings. Which means your AI posts detector was accurate.

[Aanuoluwatofunmi]

We have seen the eruption of this topic or it's kind on countless times on this forum, fine and good just as it has shown on the internet when the title was searched, same way it's been a common discussion whereby several times it has been talked upon and now no more new to is, i think it's better we begin to think about offering something new than repetition of threads or discussion matter when creating a new topic, the more reason why we have the forum search button.

[franky1]

heres my view of the difference between PRICE and VALUE

firstly the value-premium

the no one sells below(bottom) is value
the no one buys above(top) is premium

the speculation of orders inbetween the limits is PRICE

the value:premium limits are not based on market history
but based on fundamentals behind the coin

with bitcoin this is mining
if no one on the planet can mine below X then no one wants to sell below X
and everyone else with higher mining costs definitely wont. and instead would happily BUY down to X. but no one selling below X means buy/sells run out this creates a non zero bottom of X

this "value number" was  about 900 in 2017 and 10k in 2021 and about $16k right now

the market rate then speculates above that line( the price is above the value)

at the moment with price at $20k and value at $16k
this means when you buy 1btc.. $16k is protected and $4k is at speculation risk
80% store of value

yes in 2021 where $10k was protected but market speculated to $70k
it had a 15% store of value at the time of the ATH for those who bought at the high

when you buy low/buy the dip your securing more of your value

..
bitcoin has a good store of value because the value line (below the market) stays mainly bull on the longterm and doesnt move with the same volatility as price

[Zorigi]

in my opinion there is no need to compare between traditional assets and bitcoin.
because bitcoin is a digital currency, while fiat money and gold are traditional assets that cannot be abandoned.
because I personally also like to invest in gold and it has proven to be safe even though the price increase is not too high.
but I also continue to collect bitcoins every time there is a decrease in price and I will also save it as a future asset.
so the two assets should not be compared because both have benefits.

[KaliLinux]

[~snipped~]

I just copied the title of Op and run it with chatGPT and if you check the result you'll see that they're same content with different wordings. Which means your AI posts detector was accurate.

But isn't that what that technology is meant to do, write articles and other stuff for people We know now that using AI app for write-ups like this might be the go-to option for many people and this might make the newer Gen lazier to do the needful.

Coming back to OP topic, I also agree with;

in my opinion there is no need to compare between traditional assets and bitcoin.
because bitcoin is a digital currency, while fiat money and gold are traditional assets that cannot be abandoned.
because I personally also like to invest in gold and it has proven to be safe even though the price increase is not too high.
but I also continue to collect bitcoins every time there is a decrease in price and I will also save it as a future asset.
so the two assets should not be compared because both have benefits.

Talking about store of Value, a traditional asset like Gold is also a good "Store of Value" since the price rarely fluctuates as Bitcoin does in a shorter time frame especially in market trends like now however Bitcoin is also that (Store of Value)  in a longer time frame and even more of a Value generation when holding it for a long time too.

[karmamiu]

[~snipped~]

I just copied the title of Op and run it with chatGPT and if you check the result you'll see that they're same content with different wordings. Which means your AI posts detector was accurate.

But isn't that what that technology is meant to do, write articles and other stuff for people We know now that using AI app for write-ups like this might be the go-to option for many people and this might make the newer Gen lazier to do the needful.

Coming back to OP topic, I also agree with;

in my opinion there is no need to compare between traditional assets and bitcoin.
because bitcoin is a digital currency, while fiat money and gold are traditional assets that cannot be abandoned.
because I personally also like to invest in gold and it has proven to be safe even though the price increase is not too high.
but I also continue to collect bitcoins every time there is a decrease in price and I will also save it as a future asset.
so the two assets should not be compared because both have benefits.

Talking about store of Value, a traditional asset like Gold is also a good "Store of Value" since the price rarely fluctuates as Bitcoin does in a shorter time frame especially in market trends like now however Bitcoin is also that (Store of Value)  in a longer time frame and even more of a Value generation when holding it for a long time too.

Indeed! I had also checked my posts by AI checker before posting it here, though I knew that it would seem lazier, I was also risking my account knowing that it'll be checked just to see if there'd be changes in people's opinion knowing that more and more younger people are becoming aware of the technology offered by AI.

Another thing is that, once we mention AI, it is already indirectly related to crypto and I just wanted to know what the AI thinks about crypto alongside your opinions. We know that this topic has been asked so many times in the past and it's enough to say that we are already bored reading and answering it, but as what the AI is telling, is it already safe to say or consider that Bitcoin is already on par with traditional assets as a "Store Value"?

As most of you guys are saying that it'll be a store value in longer time frame, is it convincing for newer investors to add this on their list as their go to investment plans?

[franky1]

Talking about store of Value, a traditional asset like Gold is also a good "Store of Value" since the price rarely fluctuates as Bitcoin does in a shorter time frame especially in market trends like now however Bitcoin is also that (Store of Value)  in a longer time frame and even more of a Value generation when holding it for a long time too.

store of value is not the PRICE
value and price are separate numbers/measures/metrics


golds store of value
1970's value $200..  price speculation $260-$2.6k
store of value % was 70%->7%

2000's value $400..  price speculation $440-$2.2k
store of value % was 90%->18%

2020's value $800..  price speculation $1600-$2.3k
store of value % was 50%->35%

bitcoins store of value
2017 value $900..  price speculation $1000-$20k
store of value % was 90%->4.5%

2021 value $10k..  price speculation $30k-$70k
store of value % was 33%->15%

2022 value $15k..  price speculation $16k-$50k
store of value % was 95%->15%

ethereum
2022 PoW value $800.. price speculation $810-$2600
store of value % was 99%->33%

2023 PoS value $35.. price speculation $950-$1600
store of value % was 4%->2%


note how bitcoin and golds VALUE goes up..
however the speculative market above value. changes so people need to be aware of when to buy the assets (buy low, buy the dip) to secure more wealth into the values store

.. however note how ethereums value has gone down (pos transition) yet the speculative market is being held artificially too high (inability to 'unstake' to then correct the market)

ethereum is a BAD store of value and also a bad time to be putting wealth into it as the % is not corrected

[Yatsan]

Been discussed for a couple of times. Bitcoin is profitable as an investment but as a store of wealth, it would be risky. No one is certain of how will the market price behave in the future, ofcourse it would be wrong to draw conclusion that its price would continuously grow in the future for the reason that demand is not constant. There will always be tendencies for the demand to fall down especially once regulation occurs in order to force mass adoption of this technology. Demand is the determinant of its market price and it happens that there are many factors that could negatively affect such, which would more likely reflect to the market price, simply serves as risk in this technology.

[franky1]

Been discussed for a couple of times. Bitcoin is profitable as an investment but as a store of wealth, it would be risky.

deflationary currency increases in VALUE over time
value vs price are different things

the store of value/wealth is not about future. its about the time YOU purchase

EG
if in 2021 (value $10k)
if you bought at the low of $30k 33% of your value/wealth is protected
if you bought at the high of $70k 15% of your value/wealth is protected

note
because in worse case scenarios.. the market bottoms out at value
meaning you are guaranteed to get to sell at atleast $10k (as proven after the fact)
thus the $10k of 2021 is the store of value no matter what you bought it at above that

this value line (below market)
is the 2017 900
is the 2021 10k
is the 2022 15k

the value long term goes up but always sits underneath the market
its people that then have to buy low to protect more of their wealth from the beginning.. to then not have to wait as long to break even/profit later

which is where the advice of: 'buy low sell high', 'buy the dips'
'buy the discount not the premium' and 'dont buy the high', 'dont buy the hype'

if you want to protect more of your wealth buy the low not the high

yes eventually if patient enough the value will slowly rise to protect more of your wealth due to deflation.. but you can save time and patience by protecting more wealth from the time of purchase. instead of waiting for time to give you break even/profit at the time of sell

[philipma1957]

in my opinion there is no need to compare between traditional assets and bitcoin.
because bitcoin is a digital currency, while fiat money and gold are traditional assets that cannot be abandoned.
because I personally also like to invest in gold and it has proven to be safe even though the price increase is not too high.
but I also continue to collect bitcoins every time there is a decrease in price and I will also save it as a future asset.
so the two assets should not be compared because both have benefits.

Oh much like a hand and a glove.

Seriously there is no reason not to have some:

gold
silver
btc
ltc
doge
hard cash

Just don’t bet the bank on only one of them.

[Anonylz]

Indeed! I had also checked my posts by AI checker before posting it here, though I knew that it would seem lazier, I was also risking my account knowing that it'll be checked just to see if there'd be changes in people's opinion knowing that more and more younger people are becoming aware of the technology offered by AI.

Another thing is that, once we mention AI, it is already indirectly related to crypto and I just wanted to know what the AI thinks about crypto alongside your opinions. We know that this topic has been asked so many times in the past and it's enough to say that we are already bored reading and answering it, but as what the AI is telling, is it already safe to say or consider that Bitcoin is already on par with traditional assets as a "Store Value"?

As most of you guys are saying that it'll be a store value in longer time frame, is it convincing for newer investors to add this on their list as their go to investment plans?

Yeah, maybe you could have saved lovesmayfamilis the trouble of using AI checker to check your post if you had just made that indication (Source: AI-Generated) not indicating the source made it look as though it was your idea. Perhaps next time try to be more specific. Mentioning AI is not only indirectly related to crypto but virtually every social aspect and should not be a reason to create ai generate post.
 
When it comes to store of value, to me I feel it boils down to individual preference, despite the buzz surrounding btc as a store of value many people still prefer the traditional way, particularly because they don't free so much pressure with their investment,  whatever gives peace of mind will do regardless of the possibility of making huge amount from it.

[franky1]

seems instead of someone just reading the topic and discussing the topic.. we have the plagiarism army trying to argue if posts should even be made

for those that are the plagiarism army. your time would be more fruitful trying to spot scam adverts for software that steals value/funds from people

find the people trying to get others to buy high, sell low
find the people trying to get others to hand them value but not give it back
(real loss of property/value)

oh and by the way chat AI is not going to sue anyone for using its text no value is lost no damages occur for someone discussing a topic. even if its not their idea.

the only damage is when what they discuss incurs someone following advice that causes losses.
so find the comments that can cause losses

[jostorres]

Been discussed for a couple of times. Bitcoin is profitable as an investment but as a store of wealth, it would be risky. No one is certain of how will the market price behave in the future, ofcourse it would be wrong to draw conclusion that its price would continuously grow in the future for the reason that demand is not constant. There will always be tendencies for the demand to fall down especially once regulation occurs in order to force mass adoption of this technology. Demand is the determinant of its market price and it happens that there are many factors that could negatively affect such, which would more likely reflect to the market price, simply serves as risk in this technology.

I think an investment asset and a store of value is the same thing. Any asset is risky because their value can sometimes go down but the risk in Bitcoin is a little bit high because it's more volatile. If one can manage this properly, Bitcoin can also be more profitable than the rest of the assets. Despite of the disadvantages and uncertainty that Bitcoin has, many people are still addicted with it.

I think mass adoption for Bitcoin can still happen even without regulations but if regulations happen, the demand can still rise because there are people who like it as they will feel more secure from the fraudsters. Demand isn't only based on its price but more on its technology.

[karmamiu]

seems instead of someone just reading the topic and discussing the topic.. we have the plagiarism army trying to argue if posts should even be made

for those that are the plagiarism army. your time would be more fruitful trying to spot scam adverts for software that steals value/funds from people

find the people trying to get others to buy high, sell low
find the people trying to get others to hand them value but not give it back
(real loss of property/value)

oh and by the way chat AI is not going to sue anyone for using its text no value is lost no damages occur for someone discussing a topic. even if its not their idea.

the only damage is when what they discuss incurs someone following advice that causes losses.
so find the comments that can cause losses

I appreciate the thought and thanks for explaining it further too. That means someone got the point. There're even social media enthusiasts that are using AI to write them advertisement scripts. This tool is intended for that purpose anyway.

Regarding what you've said above "buy low, sell high", I was thinking the same thing after finding that out way too late. Buying the dip doesn't actually sit's right to me since you cannot hit the timing even if you have the fastest internet speed in this world. I have also participated on those trading signals way back 2016, and mostly although we gained by that, some of our fellow followers lose a certain amount. After that, I realized that it's much better to just protect my wealth by buying and holding, coz if I looked back and compared the prices now, I regretted a little bit of not sparing a single bag just to have some holdings.