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

[Antona]

There are some certain things that need more evidence to back it up because I know quite well that bitcoin is a store value based on the way it was created, like example when you purchase Bitcoin today and the allow it to stay in your custody for 3 years interval I believe that the price of Bitcoin you had today will not be the same bitcoin price you will get in 3 years time, so there is a possibility that the price will increase and immediately the price increase more than what you bought it that means bitcoin has turned to a store value for you at that moment, but this is not the reason why it was created it was created to be a global currency that can be used across the nations but we that invest in Bitcoin misunderstood the concept and also see it as a store value

It's both just in a different order than planned. To be a global currency it first needs to be widely valued that requires people to hold and believe in it long-term (store of value). Once adoption peaks and volatility settles the medium of exchange role could naturally follow we're in phase one

[Marykeller]

OP, if you don't visualize Bitcoin as the greatest store of value ever created, what then do you visualize as the greatest store of value? Is it fiat, gold, or land? Which one do you think will surpass Bitcoin in generating financial returns in the years to come? No one to be compared.

Remember, Bitcoin hasn't come into existence for far to long compared with the other valuable assets you have in mind. But it has gotten the trust of millions of people to choose her over fiat and other assets you can think of. Not forgetting to mention, millions of people has it given financial freedom to, just because they were able to hodl it for long term. It will still be doing that(giving financial freedom), without stopping, in many years to come. So, continue to align with it for financial freedom than thinking otherwise of it

[Ayers]

OP, if you don't visualize Bitcoin as the greatest store of value ever created, what then do you visualize as the greatest store of value? Is it fiat, gold, or land? Which one do you think will surpass Bitcoin in generating financial returns in the years to come? No one to be compared.

Remember, Bitcoin hasn't come into existence for far to long compared with the other valuable assets you have in mind. But it has gotten the trust of millions of people to choose her over fiat and other assets you can think of. Not forgetting to mention, millions of people has it given financial freedom to, just because they were able to hodl it for long term. It will still be doing that(giving financial freedom), without stopping, in many years to come. So, continue to align with it for financial freedom than thinking otherwise of it

I would agree with you that Bitcoin is the best investment ever. It will also be one of the most promising investments in the future as it will continue to deliver significantly higher returns than other traditional assets. But I don't think it's the best store value because in my understanding, these two concepts are different. The best investment isn't always the best store of value.

A good store of value not only needs to ensure increasing purchasing power over time but also needs to guarantee low volatility and stable intrinsic value. Meanwhile, Bitcoin remains quite volatile and is being heavily sold off in the short term due to economic instability and speculation. So, to be precise, Bitcoin is an effective store of value in the long term.

[Betwrong]

~ I would agree with you that Bitcoin is the best investment ever. It will also be one of the most promising investments in the future as it will continue to deliver significantly higher returns than other traditional assets. But I don't think it's the best store value because in my understanding, these two concepts are different. The best investment isn't always the best store of value.

A good store of value not only needs to ensure increasing purchasing power over time but also needs to guarantee low volatility and stable intrinsic value. Meanwhile, Bitcoin remains quite volatile and is being heavily sold off in the short term due to economic instability and speculation. So, to be precise, Bitcoin is an effective store of value in the long term.

I hope you meant to say that and it wasn't a typo. Because one can draw the opposite conclusion from your previous sentence. Anyway, I agree with your last sentence whether you mean it or not. Bitcoin has proved over years that it's an amazing store of value in the long term. No one on Earth ever regretted buying BTC five years earlier. 

[catnine1]

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.

HODLing and "never sell your bitcoins" are nice slogans but in reality it is easier said than done for most.

2. Bitcoin doesn't have a stable source of demand.

By that I mean there is little to no demand for bitcoin beyond speculation. For example, Apple has a strong stable source of
(non-speculative) demand because billions of people in the world are buying iPhones and Mac computers every day.
Only 10 to 20% of demand comes from people speculating on Apple stock while 80 to 90% is from commercial product sales.
That contributes to the price stability for Apple. Same thing for gold. The primary source of demand for gold is the commercial
market for jewelry and other products. Unlike bitcoin gold doesn't rely on the speculation market nearly as much and is
what helps makes gold such a good store of value.

3. It is easy to HODL it when prices were low.

In the early days of bitcoin there were many bitcoin OGs who bought it very cheaply. You can buy one bitcoin for a few dollars,
or even a hundred bitcoins for very little. Of course, it is easy for you to HODL it for many years even during extreme volatility,
because it cost you almost nothing. Even if the price goes to zero you aren't losing much.

But it is not so easy to HODL for those who bought in later when prices are much higher, because you now have a lot more to lose.
When the volatility hits you are more likely to hit the sell button. That is why the path from zero to $100K is a lot easier.

But the path from $100K to $200K will probably be much tougher and longer IMO, assuming it will get that high.


4. Bitcoin is too correlated to risk assets and the economy.

When the economy tanks so do risk assets such as bitcoin. Which shows that people do not generally view bitcoin as a flight to safety
or a good store of value when times are bad. To the contrary it is one of the first things that gets dumped. Again, this is tied
to the fact that bitcoin has no strong or stable source of demand outside of speculation. Without it bitcoin may be forever
destined and limited to the niche market.

true, its volatile af right now. but a store of value isnt about being stable next week. look at the 10-year chart, its only goin up. the scarcity and sovereignty matter more for the long game. real use cases will fix the volatility over time. were just early

[RockBell]

Of course I wouldn't blame anyone for selling Bitcoin when they simply need spendable cash because I sold a lot myself at very low prices. I lost only potential income because it wasn't like I bought BTC at a higher price earlier. I got my first BTC from gambling sites and faucets.

Same for me, I have sold so much bitcoin at lower prices, if I kept all of my bitcoins and didn't sell any, I would be able to live free without working ever again. But that is not how life works, you need money to survive, you can't just spend zero money a month, you need to cash out to live and that is what I did. I never made more money than I needed, I always made barely enough to survive so it never really mattered for me, never had ability to save too much so I agree that when people need to, they sell.

And that is the mistake a lot of people are making they are always selling what they are holding and the things is they are selling at a lower price and this is because they can not longer hold for a long time and this have even affected there goal and does that have sold before know the kind of regret they were facing because the moment they sell that is when the price will start increasing, all this is because people are not patient enough and people need to understand the value of everything becausei don't even the op is saying bitcoin is not a good store value and what ever the case maybe to me it is one of the best virtual store value and it is something that can be recommended at all point or every, let's not be deceived it is good to hold onto bitcoin.

[Betwrong]

~And that is the mistake a lot of people are making they are always selling what they are holding and the things is they are selling at a lower price and this is because they can not longer hold for a long time and this have even affected there goal and does that have sold before know the kind of regret they were facing because the moment they sell that is when the price will start increasing, all this is because people are not patient enough and people need to understand the value of everything becausei don't even the op is saying bitcoin is not a good store value and what ever the case maybe to me it is one of the best virtual store value and it is something that can be recommended at all point or every, let's not be deceived it is good to hold onto bitcoin.

It's easy to be deceived because there's so many haters spreading negative information about Bitcoin that it's hard to ignore them, but actually, we should. If your aim is to store the value of the money you have today, investing in Bitcoin is a good option. Those who lost a lot of money just because they panic-sold at the wrong time and those never touched BTC, but now envy the success of those who did will always be telling something negative about Bitcoin. Don't listen to them.

[Publictalk792]

It's easy to be deceived because there's so many haters spreading negative information about Bitcoin that it's hard to ignore them, but actually, we should. If your aim is to store the value of the money you have today, investing in Bitcoin is a good option. Those who lost a lot of money just because they panic-sold at the wrong time and those never touched BTC, but now envy the success of those who did will always be telling something negative about Bitcoin. Don't listen to them.

Bitcoin is not as hard as many people would make it out to be however as long as you are mostly worried with long term safety of your money, day to-l day trouble is not of much worry. Most of bad talk is caused by those who are called panic sellers who lost their money by selling too soon or by those who are just jealous because they did not get to buy it at low price. Bitcoin is excellent saving way and unlike normal money which governments can print as much as they want. Since all deals are put on public list, you do not even need to have someone tell you that it is real, and even large government and banks are now beginning to use it as serious thing of value. Best way to making investments without feeling scared is buying small parts at steady time because this will allow you to forget noise and focus on long term growth.

[DeeppRockk]

It's easy to be deceived because there's so many haters spreading negative information about Bitcoin that it's hard to ignore them, but actually, we should. If your aim is to store the value of the money you have today, investing in Bitcoin is a good option. Those who lost a lot of money just because they panic-sold at the wrong time and those never touched BTC, but now envy the success of those who did will always be telling something negative about Bitcoin. Don't listen to them.

Bitcoin is not as hard as many people would make it out to be however as long as you are mostly worried with long term safety of your money, day to-l day trouble is not of much worry. Most of bad talk is caused by those who are called panic sellers who lost their money by selling too soon or by those who are just jealous because they did not get to buy it at low price. Bitcoin is excellent saving way and unlike normal money which governments can print as much as they want. Since all deals are put on public list, you do not even need to have someone tell you that it is real, and even large government and banks are now beginning to use it as serious thing of value. Best way to making investments without feeling scared is buying small parts at steady time because this will allow you to forget noise and focus on long term growth.

Yeah i see what youre getting at. The volatility argument comes up a lot but theres more nuance to it than just price swings. Looking at longer timeframes like 5-10 years, Bitcoin has actually outperformed most traditional assets despite the short-term fluctuations. Comparing it to something like gold or bonds shows a pretty different picture than just looking at daily or monthly charts. Definitely something to chew on when thinking about store of value characteristics.

[Betwrong]

It's easy to be deceived because there's so many haters spreading negative information about Bitcoin that it's hard to ignore them, but actually, we should. If your aim is to store the value of the money you have today, investing in Bitcoin is a good option. Those who lost a lot of money just because they panic-sold at the wrong time and those never touched BTC, but now envy the success of those who did will always be telling something negative about Bitcoin. Don't listen to them.

Bitcoin is not as hard as many people would make it out to be however as long as you are mostly worried with long term safety of your money, day to-l day trouble is not of much worry. Most of bad talk is caused by those who are called panic sellers who lost their money by selling too soon or by those who are just jealous because they did not get to buy it at low price. Bitcoin is excellent saving way and unlike normal money which governments can print as much as they want. ~

They would have not done it if they'd,  invested only what they could afford to lose. You don't panic-sell when you are ready to lose the whole amount, but if even half of the amount is significant for you - you cash out fearing of losing even more. It's that simple: never invest more than you can afford to lose, not in Bitcoin, nor in anything.

[serchan]

You are so wrong. Bitcoin store value excellently and is one of the best mechanism to store value.
1. Nobody can steal it form you.
            [CHECKED]

2. It does not weight anything.
           [CHECKECK]

3. You can get it absolutely anonymously for example by crypto mining.
            still profitable like with 10 machines Bitmain S23 you get your bitcoin in 213 days. If we calculate difficulty factor in 365 days.
           [POSSIBLE]

4. Nobody can proof you that you own any.
            [CHECKED]

Amazing it is.

[IjawMan]

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.

It is not about people saying it, it has been tested and it proved to be a store of value in the long term. Bitcoin may not have stability but it volatility is not as high you manifest it to be, compared to other coins.

My experience is that it is the volatility of bitcoin that had embedded the idea of HODL for long, which only do not act as store of value but dew to it volatility increases value x times when hodl in the long term.

 

3. It is easy to HODL it when prices were low.

Really when. When will the price of bitcoin ever generally be agreed to be low? Cause from what I noticed, time has constantly outdated what was once seen to be a high price, turning it to be a low price by the time we reach the future , say 6 to 8 years from present day the present ATH of bitcoin will be discussed as a low price by what the price might be at then.

[betswift]

You are so wrong. Bitcoin store value excellently and is one of the best mechanism to store value.
1. Nobody can steal it form you.
            [CHECKED]

2. It does not weight anything.
           [CHECKECK]

3. You can get it absolutely anonymously for example by crypto mining.
            still profitable like with 10 machines Bitmain S23 you get your bitcoin in 213 days. If we calculate difficulty factor in 365 days.
           [POSSIBLE]

4. Nobody can proof you that you own any.
            [CHECKED]

Amazing it is.

Getting so many machines working would get the attention just by the pure electricity usage alone, other than that, I agree with you

[abaeze]

I disagree with the statement "There is no real demand for Bitcoin". Because according to the latest live report of CoinMarketCap, the market cap of BTC approximately is around $1.84 T, and such an amount of money can never be speculative. Although the demand for iPhone is a little more noticeable, Bitcoin will always be non-speculative for a real investor and its demand will continue to increase in the future.

We get many other benefits from Bitcoin, including price preservation, inflation hedge, permisionless payments, censorship resistant savings, self-custody money and 24/7 transaction service, which did not develop overnight but gradually developed. So even if Bitcoin is not a store of value in the short term, Bitcoin has proven to be a strong store of value in the long term. To me, Store of value does not mean stable every day but maintaining or increasing purchasing power over a long period of time. For example: Gold has also drawn down many times in history. So one thing we must always remember is that a new monetary assets are always volatile, even in the early stages of gold, so Bitcoin does not function as a store of value at all, but that is not the case.