Store of Value
Asset that preserves purchasing power over time — digital gold.
Store of value is an asset that can be saved, retrieved, and exchanged in the future without loss of value.
Classic stores of value:
•Gold — thousands of years, limited supply, physical
•Real estate — geographically limited, but rental yield
•Bonds — yield but inflation risk
Bitcoin as digital store of value:
•Limited supply: 21 million BTC
•Decentralized — not subject to censorship or confiscation
•Easily transferable globally
•Divisible to 8 decimal places (1 satoshi = 0.00000001 BTC)
•Verifiably scarce (on-chain)
Criticisms:
•High volatility — poor store of value short-term
•Short history (2009) vs gold (thousands of years)
•Regulatory risks
Long-term hypothesis: BTC gradually becomes more stable as market cap grows.