Post
Topic
Board Bitcoin Discussion
Re: Bitcoin price is too high at 20$/BTC
by
relative
on 24/06/2011, 08:09:59 UTC
I think we will find that a major, if not the predominate use of BTC, will be as a store of value.

imho money can only function as a store of value if that function is a "side show" , i.e. the medium of exchange function is predominent.
people have to be _very_ convinced they can get out of their position. for example, they've been able to spend their dollars their entire lifes. and even given that, investors react rather panick-y if they suspect that might change (see recent shift towards real assets/commodities since 2008).

if you buy bitcoins now even though it isnt really a medium of exchange, I wouldn't call that storing value. it is speculation on bitcoin's success as a medium of exchange.

nothing wrong with that though, if you're convinced of its success. but it is comparable to investing in a startup company, not to storing money at a bank.