Replying to Avatar LogicallyMinded

Is #Bitcoin a good store of value? Store of value can be ranked according to the six following properties:

- Scarcity: yes, Bitcoin has hard-coded scarcity.

- Stability: stability increases after each cycles but overall, Bitcoin isn’t a stable asset. You can’t buy bitcoin at any time and expect its value to remain around the same level relative to an index tracking inflation.

- Durability: yes, although hack and key mismanagement presents a risk of loss.

- Portability: great portability.

- Divisibility: yes, but currently fixed and hard-coded. May require to be updated as prices keep on rising.

- Acceptability: good but not as good as fiat currencies within a country of acceptance. Also this property is being challenged by AML/KYC procedures.
Avatar
LogicallyMinded 1y ago

Is #Cash a good store of value? Store of value can be ranked according to the six following properties:

- Scarcity: no-capped supply and no predictability of the supply over time.

- Stability: continuously loose value against an inflation index but quite stable over short period of time.

- Durability: good durability, hard to lose, not indestructible.

- Portability: good portability, except for online payments and cross border migration.

- Divisibility: good divisibility but not flexible. Loss of value against inflation guarantees that current divisibility will suffice.

- Acceptability: great acceptability within national borders except for online payments. Used as a unit of account.

Reply to this note

Please Login to reply.

Discussion

No replies yet.