Oops, "My Store of Value" Is Broken..
Since Bitcoin is largely speculative and hasn't really turned into the fast, safe, cheap, means to exchange value, many in the crypto-markets have started to refer to it as a "Store of Value".
Store Of Value
What is a 'Store Of Value'
A store of value is an asset that maintains its value without depreciating. Gold and other metals are good stores of value as their shelf lives are essentially perpetual, whereas a perishable good (e.g., milk) is a poor store of value due to its propensity to decay. Interest-bearing assets, such as U.S. Treasury bonds (T-bonds), are very good stores of value because they generate interest income and their principal balances are backed by legal contracts.
Read more: Store Of Value https://www.investopedia.com/terms/s/storeofvalue.asp#ixzz5XPgEMq2Y
In my opinion, this thinking came about because more people are holding Bitcoin then actually using it. For many of us, as a means of transaction, BTC doesn't work that well. Not many places accept it, it is difficult to use and it is definitely not cheap. Especially for those of us who do most of our financial transactions in USD.
In addition, many do not spend Bitcoin because no one wants to buy a bicycle for $300 worth of Bitcoin when the expectation is that Bitcoin might be worth $3000 dollars next month or next year.
So, we HODL it, and in 2017 the value went up non-stop, but in 2018 as a Store of Value, Bitcoin and most of the Crypto-currencies have made a pretty poor Store of Value.
I love the original idea of Bitcoin as a currency that is everywhere and nowhere, which allows me to transact with anyone, any place, any time. No banks or exchanges required. While this hasn't been achieved in the manner I pictured, I am not giving up on the idea.
This post was inspired by @meno's post here:
https://steemit.com/bitcoin/@meno/extreme-opinions-richard-heart
Is any crypto useful?
The reason I've been so hard on Bitcoin is because I think as a means of exchange it's a total dog - if a means of exchange is needed Dash smokes it. So does Steem.
And if a store of value is needed there is gold or silver bullion, certified currency in a safe - that's it - everything else is a gamble or a scam - mostly both.
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Mr. Market has to do his thing.
If this is Cycle wave IV from the top, tecnically BTC could go down back to $1000.
I wouldn't be surprised.
Bitcoin is still fine as a medium of infrequent large value transfer. It's more secure than almost any other coin. Less volatility is key if more adoption is to be expected.
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It will be back with all it's lovely volatility next year.
yes now cryptocurrency is on RED
we used to have gold backed currencies now we have BTC backed alt coins...to my new noob eyes the issues seems like that the market is too small and any decent size whale can tank it or pump it...
Bitcoin was fine in what it was doing, it is the greed which has killed the market.
No matter the use case, adoption is needed. Short term it makes sense that store of value is the stronger value but speculation continues to be a large part of the price which is why the market continues to be volatile.