Is Bitcoin a store of value?

submitted by frankielc from wasteofserver.com

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[–]ImHereForFinance 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (2 children)

Its a mirage that holds value in the eyes of its supporters. The only reason that bitcoin is worth money is because its supporters believe that its worth money and are willing to convert a bitcoin to cash which can then be exchanged for good produced by companies.

Companies are actually producing the value. Bitcoin supporters are merely allowing you to exchange the fruits of their labour( the value that they produce as components of companies), for the goods that companies produce.

Companies are the only item of true value. If cash did not exist , companies would still be worth value. A barter economy would develop and the blenders a company produced might be traded for the potatoes a farmer produced.

Seize the means of production!!! --A filthy communist

[–]frankielc[S] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

are actually producing the value. Bitcoin supporters are merely allowing you to exchange the fruits of their labour( the value that they produce as components of companies), for the goods that companies produce.

Companies are the only item of true value. If cash did not exist , companies would still be worth value. A barter economy would develop and the blenders a company produced might be traded for the pot

Bitcoin needs the work of people mining. Wouldn't there be a parallelism with Gold? Mind you that I don't believe we can say Bitcoin is a store of value. Not yet, at least, I'm just trying to ascertain that some things other than legal tender have value and can be a store of such. Would you agree?

[–]ImHereForFinance 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

Yes to some extent. I like bit coin. Speaking in terms of supply and demand: It is super cool as a concept as it fights fiat currency which constantly deflates in value after an inflation in the currency supply. Bitcoin supply is static and superior to cash as a the bitcoin supply is constant. As demand for it increases the price will inflate and the supply will stay constant. Stock constantly generate a profit and are even better than either. Profitable stocks are even better than bitcoin but are a poor means of convenient exchange. Crypto is superior as a means of exchange and for that reason I think stock market backed cryptocurrency would be the most beneficial hybrid currency. A money that pays you to hold it that can easily be exchanged.