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Yes it is a store of value. It’s a kin to digital gold. Only difference being, digital gold value increases faster. Still at this time BTC is still growing after breaking the 1000000% profit margin and is still growing. If you invest a dollar in it now, the next halving will turn that single dollar into 10 dollars. It’s an ever evolving new currency that will still be growing long after the retirement of the first investors.

Yes – the value though, IS the infrastructure. You can see that in the early days, the price was low, and fluctuated wildly. This was due, in part, to the low number of nodes, the low number of miners, and the low difficulty in solving for a block. As the infrastructure grew, essentially becoming more robust with more nodes, more miners, and more investment in computing power, we see the price (value) go up, and less fluctuation. This infrastructure is not going to suddenly go away, especially since it is so decentralized, therefore the system will hold its value (store value) as long as there is a desire to build and maintain nodes and miners. The other part of the value is acceptance. When acceptance was low, the price was low. As the system becomes more widely accepted, the value will go up, and the system will hold its value better. We may find out that even after a further increase in infrastructure is no longer worth the investment due to block reward halving, the acceptance/use of the system may be enough to hold the value, and keep people investing in the infrastructure.

When something or a commodity is a store of value, it must be distributed and acceptable to a range of persons. Gold for instance is considered the ultimate store of value because for generations before now it has has been considered very valuable and will continue to be no matter how the economy will change.
For Bitcoin, the essence that it will be a store of value is really not apparent for now until the world really understands it’s worth and the stakes involved. So it depends on the range of acceptability.

“Maybe it’s too simple of an answer, but it just continues to be too unstable. Gold fluctuates, but it doesn’t double its value over a short period of time.

“I don’t know if this is fake or not, but diamonds are abundant. And so, they really not of any value. But if you go to a store and you buy a diamond, it’s expensive, right? And the way in which it retains value is scarce. It’s supposed to be scarce. It looks beautiful, it’s a particular shape, whatever. And one particular big diamond company, I believe, gathered up a lot of diamonds and dumped them in the sea to keep the price high, because if beautiful diamonds are available to everybody, then they drop in price very quickly and it’s no longer a billion dollar market. I have no way to prove it, but I’ve read it on reliable sources.

“The big question in crypto is: Can we enter a phase where it’s stable? We have standards. It probably can’t exist in the complete absence of regulation. That’s kind of a nasty word to the cyber crypto marketplace. But, there probably — for some level of protection — needs to be some agreed regulations in national countries, but also globally.

“So, until such a time when it is stable over a long period of time and is recognized by the largest amount of organizations and governments, I think it won’t be able to be any gold or a stable asset class.”


I do not agree with the digital gold arguments at all. At least for now. I don’t know how many remember this, but gold prices used to change in the opposite direction of the stock markets. This was explained to me as follows: as stocks would fall, people would sell their stock and buy gold, which would increase demand for gold, and the price would go up. As stocks would go up, people would sell their gold to buy stocks which would lower the demand for gold, and the price would drop. I think bitcoin is just now getting to the point where this might start happening. I was closely watching stock markets, and bitcoin changes over the past week, and at a time when market dropped 10% in value, bitcoin only dropped about 5%. I think the thing that might be holding bitcoin back from becoming digital gold, is the difficulty in getting cash into and out of the bitcoin blockchain. If I could buy and sell bitcoin directly from my investment account, like I do with stocks, I would be more likely to move my money to bitcoin than to bonds like I do now when the market drops.

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