Does bitcoin need to be a medium of exchange to maintain long-term store of value?
nostr:nprofile1qqsz39wrxrpr7wp3jmqwlxydumdg8wpmgkp76huurmds54vuangljqqpr9mhxue69uhhyetvv9ujumtfdej8xtnrdakj7mn0wvq3gamnwvaz7tmjv4kxz7fwdeek2cewv9c8q5m4xsk has a great take on this.
Full episode: https://youtu.be/cjjDc9A6xL0
Yes. The monetary demand for a monetary commodity strengthens its purchasing power. Lose that demand, and it eventually follows the same path as silver (but without the industrial use). Bitcoin, without a medium-of-exchange function, will eventually go to zero. That’s why it’s crucial for Bitcoiners to start spending their coins despite the accounting hurdles. Governments figured this out long ago—you don’t kill Bitcoin by banning it; you kill it by redefining its purpose in the mainstream narrative.
Very good point but let's do not also forget about freedom aspect of it. Even if bitcoin price appreciates due to institutional demand etc. as long as you are forced to use USD or peso (it will be in digital form as cbdc), then you need permission to spend your own money for things that the government allows. So what is the value of "store of value" if you cannot buy things you want (sorry your co2 limit has been reached, no meat for you)!
