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      While Bitcoin’s first goal, to be a currency, has failed, Bitcoin has a new purpose and value to many people: as a store of value such as gold. There has been a lot of attention to this new use of Bitcoin in the past year, and it is right that there is a lot of focus on it, because Bitcoin is an amazing store of value.

The qualities of a store of value, and how Bitcoin is great at all of them

1. Liquidity All stores of value must be fairly liquid, the more the better. Because Bitcoin is not a physical resource like gold it is fast to exchange. While the Bitcoin network has slowed down recently, there is a lot of room for Bitcoin to slow, as other stores of value also do not have very high liquidity.
2. Security Another important thing for stores of value is security. A store of value must be secure, so people know that their money is safe and cannot be stolen, hacked, etc. Bitcoin is extremely secure, and its only weakness is that if someone loses their private key, they lose all their Bitcoins, with no way to get them back. This can be solved by using multisignature wallets or other similar techniques.
3. Chance of Appreciation Most stores of value appreciate over time, and appreciation is a nice bonus to people wanting to store their money, because even beating the rate of inflation is uncommon in bank accounts. As I’m sure you all know well, Bitcoin has massively appreciated in value over time (though it would be nice if it stabalized a bit)

But who is going to exchange their gold for Bitcoin?

      While not many older adults are going to exchange their gold and bonds for Bitcoin, Millennials will be the main generation using Bitcoin as a store of value. A survey here has shown that 1/4 of Millennials prefer investing in Bitcoin over stocks, bonds, gold, etc. Plus, we are at the time where Millennials are really starting to save their money in stores of value like Bitcoin. This logic shows that we are on the brink of a massive explosion in Bitcoin buying! If Bitcoin takes up just 1% of the total market cap of stores of value like gold (100 trillion), every Bitcoin will be worth $50,000! While being a currency has brought Bitcoin this far, Bitcoin will transform to being a store of value and bring its price to new heights, with greater gains than ever before.

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