


When looking for investments, it is essential to invest in assets that will not depreciate in the future. With its limited supply, fungibility, portability, and divisibility, Bitcoin merits consideration as a good store of value.
Introduction to Asset Value
Let us consider the entire market structure. If asked to pick an asset whose value would appreciate with time, the first options that would come to mind would probably be the precious metals, Gold or Silver. This would not be out of place since these assets have established themselves in the industry for years. Besides, they dominate the stock market.
Arguments are ongoing on whether Bitcoin should be classified with these precious metals as a reliable asset. Recent price increase suggests that Bitcoin may seem to be a good asset, but critics point to its high volatility. In this write-up, we will discuss Bitcoin, as a good store of value. However, we are keeping in mind other stores of values.

Store of Value Explained
A store of value is an asset that can retain its value over time. This means that any asset that maintains its value without depreciating is a store of value.
When you purchase an asset, you would expect that it would retain its value or increase in the future. However, many assets fall short when it comes to this description.
The question now is, "How does one decide on the assets to buy with the hope that they increase or retain value in the future"? Read along, as we will enlighten you on detecting an asset with a good store of value.
What is a Good Store of Value?

It is important to know the factors that make an asset a poor store of value. This will be key in detecting a good store of value. Consider fruits, for instance; people need fruits like bananas, oranges, and watermelons because of their obvious health benefits. If these fruits become scarce, their value will increase. However, the sudden increase in value due to scarcity is not the criterion for being a good store of value. This is because if you keep these fruits, they will not increase in value. Instead, they will depreciate, as fruits tend to spoil when preserved for long. This does not obey the definition of a good store of value, given that its quality depreciates with time.
Even if fruits are scarce, it does not make it a good store of value. But, scarcity is an important requirement. Let us illustrate this with another example. Pasta is a product that is cheap to produce and will last for a longer period. It is easy for anyone to produce, but it may need to be relatively scarce for its value to increase. Here is the logic: as many people produce pasta, its price tends to drop because there is enough pasta to satisfy consumers' needs and even more in circulation. For its value not to drop, it needs to be sought-after. This is where scarcity comes into play.
Like pasta, the value of traditional currencies like the U.S Dollar tends to depreciate as more units are in circulation. Many people may consider these traditional currencies as good stores of value, but if you save a currency such as Euro in the bank, it does not retain its value over time. What €2000 can get you now could get much more just a few years ago. The fact that these currencies are readily available implies that they are very cheap to produce. Therefore, the steady supply of traditional or fiat currencies will lead to consistent inflation in the prices of goods.
Knowing what makes an asset a bad store of value makes it a good store of value? As stated earlier, scarcity is a good agent of increase in value. Consider gold, for example. Its availability is limited because, unlike money, it is complicated to produce. When people demand large quantities of gold to it may take some time before the demand is met. Gold is a good store of value as its supply is limited, and it can be saved without deteriorating in value.
Bitcoin as a Store of Value

The world has gone digital, and we now have digital currencies. One digital currency that is dominating the market is Bitcoin. Many people have coined it "digital gold" because of its importance.
The theory of Bitcoin as a store of value came because it has witnessed unprecedented growth. Bitcoin's value has not depreciated since its inception, which strongly supports the theory. Bitcoin, like every other cryptocurrency, can be quite volatile. The value of one Bitcoin can swing downwards by as much as 15% in the space of some minutes, yet it is still widely regarded as a great asset. All that needs to be noted is that Bitcoin was one dollar 10 years ago, and it is now trading above $50,000.
Why is Bitcoin Seen as a Good Store of Value
The high rate of volatility suggests that Bitcoin is an inferior asset. However, some of the reasons why it is regarded as a good store of value are as follows:
● Scarcity
The supply of Bitcoin is limited. Just like gold, Bitcoin can be 'mined' by computer hardware that performs some cryptographic calculations to obtain fresh coins. However, the total minable quantity of Bitcoin is limited to 21 million Bitcoins. This means that any percentage you acquire will remain the same. Even if you buy 10% of the entire supply from the market, you will still have 10% in the next five years.
● Bitcoin is Decentralized
By this, we mean that Bitcoin is more like a natural resource than something that is easily manipulable. Therefore, holders of the cryptocurrency can rest assured that the supply is fixed and cannot be amplified.
Advantages of Bitcoin as a Good Store of Value

Bitcoin has many advantages as a good store of value, but we will narrow them to these two.
- Bitcoin is very portable: This means that Bitcoin is straightforward to transport. It is not easy to move other assets around like Bitcoin. For instance, moving assets like oil or even fruits require a lot of effort.
For a currency to be portable, it needs to have a small form. It needs to be movable with ease when required for making transactions.
Bitcoin, unlike other precious metals, is more significant in this aspect. You can move several million dollars worth of Bitcoin from one place to another using a computer. To transport other metals from one place to another, one has to pay immense transportation costs. Millions of Bitcoin can be easily transferred for much lesser fees.
- Bitcoin is divisible: Bitcoin is made of smaller units called Satoshis. This makes it easier for small-scale investors to buy minute quantities.
Closing Remarks on Bitcoin's Value
Many investors believe that Bitcoin is a good store of value. However, its volatility places a huge question mark on the minds of analysts. Towards the end of 2020, head of Fidelity Digital Assets, Tom Jessop termed the asset as a "potential store of value." In spite of its volatility, Bitcoin, with its limited supply, fungibility, portability, and divisibility, merits consideration as a good store of value.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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Related News

Explore the comparative analysis between Bitcoin and Pi Network, two prominent networks shaping the future of decentralized finance. Uncover their differences in mining, scalability, market acceptance, and community dynamics.
TL;DR:
- Bitcoin and Pi Network are compared in terms of their foundational principles, mining methods, scalability, market acceptance, and community dynamics.
- Bitcoin operates as a decentralized digital currency, while Pi Network focuses on accessible mining through mobile devices.
- Bitcoin mining relies on computational power for security, while Pi Network utilizes a mobile mining approach with lower energy consumption.
- Bitcoin faces scalability challenges, while Pi Network needs to address scalability as it aims for widespread adoption. Market acceptance and value differ between the two networks.
Cryptocurrencies have opened new avenues for financial transactions, decentralized networks, and innovative technologies. Bitcoin, the first and most well-known digital asset, has paved the way for a digital revolution.
However, newer players like Pi Network are entering the market with unique propositions and aiming to challenge the status quo. This article will conduct a comparative analysis of Pi Network and the Bitcoin network to understand their similarities, differences, and potential implications for the future of Decentralized Finance (DeFi).
Foundational Principles
Bitcoin, introduced in 2009 by the pseudonymous Satoshi Nakamoto, was designed to be a decentralized digital currency that operates on a peer-to-peer network. Its foundational principles include security, transparency, and scarcity. Bitcoin's blockchain technology enables secure transactions without intermediaries or central authorities.
Pi Network, on the other hand, was founded by a team of Stanford graduates in 2019. It creates a digital currency, $PI, that can be mined using mobile devices, making it accessible to the masses.
Mining and Network Security
Both Pi Network and Bitcoin utilize mining as a fundamental process, but they employ different approaches. Bitcoin mining involves solving complex mathematical problems through computational power to validate transactions and add new blocks to the blockchain. This process ensures network security and prevents double-spending.
In contrast, Pi Network's mobile mining aims to provide an alternative approach that allows users to mine using their smartphones. It utilizes a consensus algorithm that doesn't require massive computational power or energy consumption. However, it's important to note that Pi Network is still in the enclosed mainnet phase, and the security and decentralization of its network are not as established as Bitcoin's.
Scalability and Transaction Speed
Scalability has been a significant challenge for Bitcoin. The network can handle a limited number of transactions per second, leading to congestion during peak periods and higher transaction fees. Various solutions, such as the Lightning Network, have been proposed to address these scalability issues and enhance transaction speed.
Pi Network, a relatively new project, has not yet faced the same scalability challenges as Bitcoin. However, as Pi Network aims to achieve widespread adoption, it must address scalability concerns to support a growing number of transactions and users when the open mainnet goes live.
Market Acceptance and Value
Bitcoin has gained widespread acceptance and recognition as a digital asset and a medium of exchange. It has attracted institutional investors, retail traders, and merchants worldwide. Bitcoin's value is determined by market demand, and its price has experienced significant volatility over the years.
In comparison, Pi Network’s enclosed mainnet phase means that its native currency has not yet been listed on major exchanges. Its value and market dynamics are not freely tradable or well-established. Pi Network's success in gaining market acceptance and establishing value will depend on user adoption, utility, and listing on reputable exchanges.
Community and Ecosystem
Bitcoin has a robust and active community of developers, enthusiasts, and supporters. Its open-source nature has allowed for the development of various applications, platforms, and services built on top of the Bitcoin network. The Bitcoin community has played a vital role in its growth and adoption.
Pi Network, as a newer project, is also building its community of users and supporters. It has attracted many early adopters enthusiastic about its vision of accessible mining. The Pi Network team actively engages with the community, providing updates and addressing concerns. Building a solid and engaged community will be crucial for Pi Network's success and future development.
Conclusion
The comparative analysis between Pi Network and the Bitcoin network highlights their differences in approach, mining methods, scarcity, scalability, market acceptance, and community dynamics. Bitcoin, as the pioneer in the cryptocurrency space, has established itself as a widely recognized and accepted digital asset. Its decentralized nature, security, and growing ecosystem contribute to its value and market dominance.
Pi Network, on the other hand, is a newer project that aims to bring mining to the masses through mobile devices. It introduces a unique consensus algorithm and focuses on accessibility and user-friendliness. However, Pi Network is still in its early stages, and its network security, scalability, and market acceptance are yet to be fully established.
Both Pi Network and the Bitcoin network contribute to the continuous innovation and evolution of decentralized finance. While Bitcoin remains the leader in market acceptance, value, and ecosystem development, Pi Network's vision of accessible mining and user-friendly approach could have implications for making cryptocurrencies more inclusive and widespread.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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