Nostr

The risk of positioning #Bitcoin as a store of value only is that market downturns can trigger a loss of confidence in the belief that #BTC is actually a strong store of value. This happens at each cycle and Bitcoiners have learnt to factor the high volatility in the store of value narrative. However the core assumption that keeps this narrative alive is that the price of Bitcoin goes higher with each cycle and that every cycle correction put on a higher high. However what would happen if Bitcoin was to fail to make a higher high in a cycle uptrend or would put on a lower low in a cycle correction? Wouldn’t the « store of value » narrative be seriously undermined? In this case, what would be left for Bitcoin to sustain the demand and keep the hodlers from getting scared?

How would you react if it appears evident that Bitcoin fails to put on a higher high or put on a lower low in a cycle? Would you still consider Bitcoin as a store of value?

Reply to this note

Please Login to reply.

Discussion

LogicallyMinded 1y ago

* and that every cycle correction put on a higher low

Chuck Langstrumpf 1y ago

Imagine the government would mandate everyone has to store its value on a public, transparent ledger - so everyone, including Feds, criminals, your ex wife and your neighbors can see how much you have and with whom you transacted.

There would be outrage about this retarded idea. Yet, the store of value argument is the last thing BTC holds on to as it has lost almost all properties which made it interesting in the first place. Sad.

ede3d957... 1y ago

If the assumption of higher highs breaks it's an obvious sell.

Bitcoin as a store of value is just narrative if it can't work as a sufficient medium of exchange.

And Monero already is a vastly superior medium of exchange.

As trust in Monero's underlying encryption rises Bitcoins only arguments over Monero dissolve in time and space.

Bitcoin then becomes a great on boarding tool for Monero.

tuco 1y ago

Bitcoin is, among many other things, THE ramp for monero