I've been trying to understand Bitcoin’s role in today’s economy. Many people describe it as a hedge against inflation, but with its frequent price fluctuations, I sometimes wonder how reliable that claim is.
Now that interest rates are rising globally and liquidity is tightening, is Bitcoin still considered a dependable store of value, or is it more of a high-risk asset?
I’d really appreciate hearing from long-term holders how do you currently view Bitcoin in terms of financial stability?
One thing you need to understand about bitcoin is that it is a volatile asset, and you need to consider it as a long-term investment. Bitcoin is a good store of value only if you can hodl it for a long time. If the investment is a long-term investment, there is a guarantee of making a good profit in bitcoin. If you really want to understand how bitcoin is a store of value, you can do your research and check the price of bitcoin over the years. You can compare the price of bitcoin with fiat and other assets since bitcoin was created; you would see the difference and the reason why bitcoin is considered a good store of value.
Understand the value of bitcoin from previous years. The volatility of bitcoin doesn't make it a less valuable asset. The way volatility plays a role in the decrease of the price of bitcoin is the same way it increases the price of bitcoin.