Quote from: adzino on Today at 05:36:22 AM

Quote from: PSCQQSCQQP on August 30, 2022, 11:02:47 PM

https://www.youtube.com/watch?v=n41GPPhLkhI&t=30s

Keeping in mind the most important factor, without gold and silver, all electronic equipment wouldn't exist = bitcoin would not exist. Computers, phones, tv's, etc ALL require silver and gold to be manufactured.

What are you trying to say here? Would have been better if you explained a little what's happening on the video instead of making us go through the whole video.

But right now, at the current state, bitcoin is a store of value. People are using it more as a store of value than as a regular currency for making day to day transaction. Look at how many people are holding bitcoin and how many of them made a good fortune out of it. Maybe in the future when bitcoin and crypto currencies become main stream, people will use it as a regular currency.

"Store" of "Value"

A store is a place for something. Value is the worth we assign something. An object with value has some kind of tangible worth.

It may be food. It may be real estate. It may even be a collectible, in which case the value is more subjective than objective.

You may see value in a Picasso. I may not. In a zombie apocalypse, you may still see value in that Picasso, but I will prefer the objective value of a bazooka (with things to shoot from it).

If something has value, it can be exchanged with another person for something of value - and it isn't always the same thing that gets exchanged.

Money can be exchanged for food, for example.

Food can be exchanged for guns, and so on.

Suppose you live on a farm. You can harvest food from that farm. The farm remains a store of value as long as you produce food. In fact, everything involved with growing and harvesting that food is a store of value because every item is needed to create the food.

Aluminum is a store of value. We need aluminum to make some of the machinery to farm the land. Water, seeds, land - these are all stores of value.

So, if something is going to be a "store of value", it should hold that value under all but the most remote of circumstances. Its objective and subjective value may fluctuate, but over the long term, it will maintain much of that value.

The real estate market crashed in 2009, but it has recovered. Over the long term, real estate not only holds its value but its value also increases. That's because the land has many ways that value can be extracted from it, and because there is a finite amount of it. The value of that asset is stored.
Bitcoin Is Not A Store Of Anything

Bitcoin has no intrinsic value. It is not backed by any asset. It has no collectible value. It isn't even a tangible thing you can hold in your hand. It's vapor, living out there as 1s and 0s.

Talk about a ghost in a machine!

Bitcoin is not a store of or for anything. If it is a store of value, I should be able to convert fiat currency into bitcoin and bitcoin will maintain that value.

That does not happen.

Here's Bitcoin's track record at maintaining the value of US dollars over the last 3 ½ years.

https://ibb.co/mczqpm5

That chart is not maintaining anything. It's incredibly volatile.

Bitcoin's volatility is why it is not a store of value. It is also not a store of value because nobody needs it.

Maybe you believe that "one day" Bitcoin will stabilize and become a store of value.

Great! But why would you hold any Bitcoin until that day arrives?

If that day comes, what if it ends up at a 1-1 exchange ratio with the US dollar and you bought it at $8,569? Not only will you have realized Bitcoin wasn't a store of value, but you'll also be poor, and very angry.

You will also have opportunity cost - what you could have earned with that money while you "maintained" it in Bitcoin.
Means of Exchange

I want to make it clear that there is a big difference between being a store of value and being a means of exchange.

Money is not a store of value. It is a means of exchange. Money does not retain its value because of inflation.

Bitcoin is a means of exchange, but not a reliable one.

The problem is that it is a worse means of exchange than any other stable country's currency because of its volatility.

By the time you execute a currency conversion into bitcoin, and then into another currency, there is no guarantee the value will be maintained during the exchange (discounting commissions).