Why Bitcoin doesn't work well as a store of value.

[Shineup]

It works well for those who believe.

To be a successful Bitcoin holder you need to believe in the system.
Someone who don't like bitcoin can't be progressive at holding.
It takes more than wanting to make money when you want to become a Bitcoin holder, it's not going to be easy.

You can't expect someone who want to become a millionaire in 2027 to say that Bitcoin is a good store of value, because before that time gets here or even after, Bitcoin can lose alot of value.

If you are not a believer you won't have the patience to see the fruit get ripped.

Belief helps, but I think understanding why bitcoin moves the way it does is even more important. A lot of people call it a poor store of value when they focus only on short periods, especially during big drops. But store of value usually makes more sense when viewed over a longer timeline, because short-term volatility is still part of how Bitcoin behaves.

For me, the difficult part is that many new holders enter with fast expectations, then lose confidence when the market does not match that timeline.

Bitcoin happens to be a store of value in that it can serve as resistance to arbitrary inflation rate, limited in supply, the Bitcoin movement is bounded by supply and demand, anyone who doesn't consider Bitcoin for the long term will never benefit from it as store of value, it is wrong when people consider volatility as a threat to Bitcoin existence, entering in to Bitcoin with fast expectations is wrong and it shows low understanding, the market is with uncertain performance and it is very hard for it to match anyone's timeline and expectations.

[Proty]

Do you agree or disagree? I myself used to believe bitcoin was the greatest store of value ever created,
but after giving it a lot of thought I no longer believe that is the case, and here is why.


1. People often say bitcoin is a store of value, but in the same breath also tell you it is highly volatile.
Those are two contradictory things. A store of value has to be more or less stable in price. It cannot be both
highly volatile and a good store of value imo.

When something is very volatile, it tends to shake people out and cause them to panic and sell.
That is why most people will not be able to HODL bitcoin for long. Of course there are some hardcore HODLers
who are able to hold it for many years (I was one of them) but they are the exception not the rule.
.

bitcoin is a good store value and this has been proven over the years. The fact that bitcoin is highly volatile doesn't mean it is not a good store of value. Bitcoin being volatile in nature is even something that makes it a good store of value because it act as a hedge against inflation. If bitcoin was to be a stable asset definitely inflation will eat it values up as time passes by there by making it not to be a good store of value.
Volatility doesn't mean only downward trend but it comprises both downwards and upwards trend. With this in mind there won't be much fear of selling whenever there is a sudden decline in price.

[Abiky]

What type of investment or asset can easily generate profit?

Bitcoin is just like any other investment. The difference between them is that each type has its own cycle and require specialized knowledge and patience to generate profit. Bitcoin is even considered an investment that offer faster and larger return due to its shorter cycle. That is also why we chose Bitcoin. However, despite its shorter cycle, Bitcoin is not a tool for getting rich quick overnight.

Therefore, those who want to get rich quickly and lack patience should not invest in it.

Stores of value often move at a slow and steady pace. Such is the case with Bitcoin and Gold. Bitcoin moves much slower than altcoins, but as not much as Gold. Often times, high rewards come with a high risk of loss. Especially when returns are obtained within a short time frame.

Most people quickly get disappointed of Bitcoin's short-term performance, and move to altcoins instead. Such decision could lead them to financial ruin if the altcoin of choice goes all the way down the drain in an instant. Better play it safe with low risk/reward coin such as Bitcoin, then worthless "meme" coins. Just my two stats.

[X-ray]

While stores of value are a "long-term concept", today's generation want quick results. So if they see prices going down within the short-term, they will immediately get disappointed and panic sell. Such is the situation with the OP. He's frustrated about Bitcoin's short-term performance, probably out of desperation to make money fast. Both Bitcoin and Gold are a long-term thing, so only invest in it if you're willing to build true generational wealth. For quick returns (although with a higher risk), altcoins are a much better choice.

I'm confident that BTC will continue to rise towards new heights as institutional adoption increases. With "Wall Street", banks, and governments involved in Bitcoin, prices will be a lot higher in the future. Just you wait and see.

You are probably right, and please correct me if Im wrong. Because, if I'm not mistaken, OP used to be a fervent Bitcoin supporter on our forum. But then suddenly he did a complete 180 and started complaining about Bitcoin. So, if it was not for profit, I do not see any other logical reason why he would change his mind so quickly and turn his back on bitcoin

Its only a matter of time before Bitcoin grows and reaches new record high prices. There is nothing to doubt about that, but the problem is that many people will lack patience  .

The bitcoin rally was hell of an adrenaline, everybody is super optimistic especially the newcomers who just bought bitcoin at pretty high price and when things doesn't go in their favor, of course they will feel disappointed.

I've seen many of such cases, from ultra bullish to shitting on bitcoin on bearish market but it doesn't change the fact that bitcoin's price performance has been amazing for this decade.

[Iamgoat]

Bitcoin happens to be a store of value in that it can serve as resistance to arbitrary inflation rate, limited in supply, the Bitcoin movement is bounded by supply and demand, anyone who doesn't consider Bitcoin for the long term will never benefit from it as store of value, it is wrong when people consider volatility as a threat to Bitcoin existence, entering in to Bitcoin with fast expectations is wrong and it shows low understanding, the market is with uncertain performance and it is very hard for it to match anyone's timeline and expectations.

Bitcoin works for long term investors more than it does to the short term investors but even the long term we talk about, it is something which has to be done with a solid strategic plan to execute. You need plans such as predicting the value over a specific period of time until they record a specific amount of money which they had set as target and once they hit the target, you can decide to close such as investment or work towards a bigger investment with bigger targets and longer time.
Imagine how bitcoin fell from a significant amount of over a 100k dollars to what is now 66,000 dollars or thereabout. Such significant fall has discouraged alot of people who do not still understand how the system works by this time. It is something you should have learnt for a good period and understand properly before jumping into it with the right mindset, right psychology and the right knowledge to succeed without unnecessary problems here and there.

[Smack That Ace]

What type of investment or asset can easily generate profit?

Bitcoin is just like any other investment. The difference between them is that each type has its own cycle and require specialized knowledge and patience to generate profit. Bitcoin is even considered an investment that offer faster and larger return due to its shorter cycle. That is also why we chose Bitcoin. However, despite its shorter cycle, Bitcoin is not a tool for getting rich quick overnight.

Therefore, those who want to get rich quickly and lack patience should not invest in it.

Stores of value often move at a slow and steady pace. Such is the case with Bitcoin and Gold. Bitcoin moves much slower than altcoins, but as not much as Gold. Often times, high rewards come with a high risk of loss. Especially when returns are obtained within a short time frame.

Most people quickly get disappointed of Bitcoin's short-term performance, and move to altcoins instead. Such decision could lead them to financial ruin if the altcoin of choice goes all the way down the drain in an instant. Better play it safe with low risk/reward coin such as Bitcoin, then worthless "meme" coins. Just my two stats.

No, a highly volatile asset can also be a store of value. Volatility is not a criterion for evaluating the ability to store value. Any asset that can maintain its purchasing power and increase in value over the long term is a store of value, regardless of its short term fluctuation. Safe haven asset require stability.

Altcoin are gambling, not an investment. Those who are pouring money into altcoin are hoping to make millions of dollars in profit in the short term. They are simply gambling, and they are gamblers, not investor.