What does store of value mean? Can bitcoin be a store of value?

in cryptocurrency •  7 years ago 

In the words of Wikipedia;

A store of value is the function of an asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved. More generally, a store of value is anything that retains purchasing power into the future.

In other words, things that are generally perceived and somewhat proved to be appreciating in value with time, some known examples would Land, Money, Gold, and other precious metals etc.

Can Bitcoin be a store of value?

It already is a store of value and has consistently proved it. Bitcoin derives most of it’s value from it’s use for two things;

  • Medium of Exchange/Technology
  • And Store of value

Although, Satoshi Nakamoto originally viewed Bitcoin as Peer-to-Peer Electronic Cash Payment System but somewhat it has become a store of value, given it’s first mover advantage and being scarce in supply. And there are people who likes it much as a store of value rather than a Payment system and that’s one of the many reason why we couldn’t get a consensus on block size raise.

Here’s an interesting tweet from the founder of Civic, one of the most coveted man in Crypto world, that I find really interesting and somewhat validates the point I am making here.
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