Post
Topic
Board Bitcoin Discussion
Re: Bitcoin is a Store of Value
by
Cnut237
on 26/05/2020, 10:04:51 UTC
Long-term, Bitcoin is a Store of Value.
Short-term, Bitcoin is a speculative asset.
I do get annoyed by people saying 1) bitcoin is supposed to be a safe-haven store-of-value, therefore 2) people should having flocked to bitcoin once CV19 hit, which didn't happen, therefore 3) bitcoin cannot be a safe-haven store-of-value.
I agree with your summary above in the sense that bitcoin is currently and was previously a highly speculative asset, and has the potential at some point in the future to become a store-of-value.
Bitcoin now and bitcoin 'end state' are very different things.

If you think Bitcoin is a store of value at any time frame, you are marking yourself as a moron.
Store of value need to be stable, bitcoin is never stable.
It either shoots up in price or crashes down, stable it has never been!
Your third line, I agree.
Your second line, I would argue that a store-of-value should increase, at least intermittently (we are measuring against fiat). Bitcoin needs to be stable if it is to be used as a currency, not as a store-of-value.
But the reasoning in lines 2 and 3 undermine your first line, because you are talking about the past. You can't say that bitcoin will never in future be a store-of-value ("at any time"), and base this conclusion entirely on what bitcoin has been so far.
Bitcoin certainly has the potential to become a safe-haven and a store-of-value. Of course it isn't yet, because of the volatility, which is largely a consequence of the comparatively thin markets... but it's difficult to deny that potential.