Bitcoin is a store of value, similar to Gold

Gold is a better store of value than bitcoin simply because it’s not as volatile. However, bitcoin (while not the best) is a store a value, at a time when mankind needs more value stores.

Gold is considered a great store of value because it’s been the most trusted one for thousands of years, and will go on to be the most trusted store of value for thousands more.  However, for the sake of comparing it to Bitcoin, there must be a clear distinction between gold’s use as a store of value, and it’s intrinsic value based on the economic demand for the metal.

You can sell gold to people that are going to use it, and you can sell gold to people wanting to store value.  These are two completely different use cases, and bitcoin only competes with the later.

You can’t do anything with bitcoin other than sell it to someone looking to store value.

There is a huge demand of people looking to store value.  Gold doesn’t have a 7 trillion dollar market cap because of the economic demand for it in jewelry, dentistry, or circuit boards.  It’s mostly value storing.

What we store our value in always seems to accrue in value over time (metals, real estate, stocks) that’s not because these are always good investments, it’s because the fiat currency we use to buy these value stores simply gets devalued over time.

2 thoughts on “Bitcoin is a store of value, similar to Gold”

  1. Other stores of value do not perform the function better than bitcoin due to similar reasons. As explained earlier, the supply of resources like gold continues to rise due to the use of improved technology in mining them. The slim possibility of scientists coming out with a cheap way of replicating the chemical composition of gold can also not be ruled out. The door to an entirely new supply of such precious metals could also be opened if they are found on other planets.

  2. Hey there just wanted to give you a quick heads
    up. The words in your post seem to be running off the screen in Opera.
    I’m not sure if this is a format issue or something to do with browser compatibility but I figured I’d post to let you know.
    The design and style look great though! Hope you get the issue resolved soon. Kudos

Leave a Comment

Your email address will not be published. Required fields are marked *