Quote from: Bitcoin_people on Today at 03:28:22 AM

Quote from: nitrobetting on June 18, 2023, 11:44:07 PM

3. Bitcoin has become accepted as a store of value
Most individuals believe gold is a store of value. When Warren Buffet says gold has intrinsic value, he means the asset itself is valuable.

Buffet doesn’t believe Bitcoin has intrinsic value. But it does because BTC investors, and the nation of El Salvador, has decided it does.

El Salvador made Bitcoin legal tender. Nations back up their native currency with gold, silver, or other precious metals. El Salvador backs up their currency with Bitcoin.

Bitcoin is a currency in which people invest with the aim of changing their financial position and earn profit from it. Whereas El Salvador has formally identified Bitcoin as their country's back-up currency that improves their economic status. Although El Salvador currently has a breakup system of everything by Bitcoin where they have created a Bitcoin City. In other countries of the world they break up their economic position with gold or other precious metals. But El Salvador is the only country where Bitcoin is used to break up their economic status. And by using Bitcoin they are enjoying all the benefits and leading the country towards economic development. In that case we can say Bitcoin is a store of value where people can invest their money and earn good profits. Bitcoin is a virtual currency held by people believing it to be a future asset.

The government of El Salvador seems to have bought bitcoin at a high, possibly much higher than current prices, so to say that they are benefiting and their economy is growing on bitcoin is inaccurate. I am not saying they failed because adoption will take longer, but they are not very successful in accepting bitcoin and bitcoin is not the only official currency there, El Salvadorans still use USD in their daily lives.

Many people say that bitcoin is a store of value but I still doubt it, because bitcoin's volatility is so great that it is not suitable as a store of value. Assets like gold or real estate are more stable, so they can be said to be suitable for storing value. As for bitcoin, it is more suitable as an investment, IMO.