Cryptocurrency

BTC as a Store of Value useless?

BTC is the Alternative to our ailing financial system. It is currencies of the people, especially prior to the Inflation of the FIAT and the monetary despotism of the States behind it to save. However, in times of a pandemic could not claim Bitcoin against the traditional financial market.The BTC price yesterday slumped briefly by more than 50%. The Coronavirus has also made the crypto market, and the voices are getting louder that BTC as a Store of Value (SoV, store of value) would be suitable and never will be.This is the opinion of all non-represented but certainly. Erik Voorhees, well-known Bitcoin and crypto-expert, is available to the public against the negative opinion in relation to BTC as a potential store of value.In this article, we look at whether Bitcoin is actually not a Store of Value, and never can be.

BTC just had a bad day

The financial market is currently experiencing one of the worst crises in history. The current Situation, if the rate drops as an indicator, is worse than in 2008. Currently there are not then the might suddenly change.The Coronavirus in many countries is on the rise, and negative news from the respective countries could continue to put the markets under pressure. Prior to that, will probably not be able to save BTC. In times of hysteria and panic, people flee from all sorts of Investments in FIAT. Has failed BTC as a store of Value completely?Erik Voorhees, one of the most famous people in the Crypto Space, is against this claim and argued against it. He also adopts Ethereum and DeFi, who also suffer under the current rate burglary.

No, Bitcoin as a store of value is not dead, just because it had a super crappy day. No, Ethereum, and DeFi are not dead, just because they had a super shitty day. In the coming months, the world will see, what is the meaning of anti-fragile.

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Usecase of BTC by that every crisis always clear

The Bitcoin rate burglary cannot be ignored. In the market, speculative money is very much. You saw yesterday, more than clearly felt. Bitcoin is still a market more resilient than the stock.To avoid the complete collapse, is pumped into ailing economies money. The Central banks increase the money supply, and save in the short term, the relevant company with the fresh money, increase the money supply and thus promote the devaluation of our FIAT currency. This behavior promotes the actual Usecase of Bitcoin. In addition, BTC does not need the support of the Central banks in order to survive. The free market decides the price of the distributed Assets.The US Central Bank has just announced another program to the value of 1 trillion USD, to be fed by the quantitative easing in the economy. This decision was made due to the strong slump in the stock market in the last few days.

Market capitalization and insufficient liquidity to blame for the slump

Bitcoin has one of the worst days experienced in his course history. But this does not mean that BTC has failed forever as a possible store of value. That tells us only that the market is still extremely small, and the liquidity is not sufficient to greater sales (and purchases) without a strong price-to withstand fluctuations.Alone the 12 million BTC that were moved to 1 year, take a lot of liquidity from the market. BTC is every single course of the break-in, and technical problems with the time stronger. According to the Motto: “What doesn’t kill you makes you stronger”. Bitcoin is like a living organism, the Anti-body, and thus the next “infection” is no longer such symptoms shows.According to Erik, the Bitcoin is its strength in the coming months to demonstrate. For BTC it was not yesterday, a bitter course of the break-in but for BTC, however, quite atypical. I’ve been to similar climbs and dips several times to witness. At some point you get numb, and sees only the big picture. Theoretically, you can recover the Bitcoin, within a few days or weeks of the Drama of the last days. In the case of stock already it looks a little different.Find the right one for you tax Tool. In our tax tool comparison for Bitcoin & Co, you can find out which providers are there and where are their Strengths and weaknesses lie. Choose currencies for you the optimal Tool for easy and hassle-free tax return for Bitcoin and Crypto. For comparison go.

Store of Value from the table? Certainly not!

The hardest the money in the world will prevail in the long run as a Store of Value. Do the invariant properties of BTC is possible even after such a severe downturn is still unchanged. This crisis strengthens even the Fundamentals of BTC.The devaluation of our FIAT currencies is to think from crisis to crisis is becoming stronger and, eventually, the last begins about possible Alternatives. But for that it needs much more time. BTC is still in the Public a pure object of speculation with no clear. The trust in a purely virtual Assets must rise. Because this is a whole new Asset class, which we had not up to now on the screen.We can’t just expect that after 11 years to become a respected Store of Value like Gold. Gold has been used for thousands of years. We should not, therefore, give BTC some time to prove himself, possibly, as a Store of Value?In addition, the respective time horizon is subjective. Now, if Gold, should, for whatever reason, 10-20% fall, it is not a Store of Value anymore? The Definition of Store of Value is quite clear. Trying to keep his purchasing power for the future or to increase. But here there is no exact period of time.If I should now hold 10 years of Bitcoin, and it has compensated for the Inflation of my FIAT currency in this period, then, for me it is a Store of Value. If someone holding BTC only 2 months and 50% to a negative slip, then it is for those not a Store of Value.You can see that the question of whether something is a Store of Value is not so easy to answer. Yet it is much more difficult but, if we have something that has all the features to be a better Store of Value than Gold, deny darsein permission for a Store of Value after just 11 years. Let us in the next months and years to wait and see if BTC can actually place in this field in a sustainable manner.Bitcoin (BTC) is for you to be a Store of Value or a speculative investment?Come on in to our Telegram Chat and talk with the experts and the Community!
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About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.