"A key question has followed Bitcoin ( BTC) since it gained prominence: Can it reliably act as a store of value? The idea has long intrigued individual investors, and now even pension funds are beginning to explore it. They are assessing whether Bitcoin can preserve value over time, potentially alongside or even competing with traditional safe assets such as gold."
"A store-of-value asset maintains its purchasing power over long periods. It typically has four main qualities: Scarcity: A limited supply that is difficult to expand Durability: The ability to last without degrading Portability: Ease of transfer and storage Liquidity: The ability to be easily exchanged for goods or other assets. Gold has traditionally met these standards. Fiat currencies, by contrast, lose value over time because of inflation and an expanding money supply."
A store-of-value asset maintains purchasing power over long periods and is defined by scarcity, durability, portability, and liquidity. Bitcoin offers digital scarcity via a 21 million coin cap, continuous global trading, durability supported by network security, and liquidity that can rival traditional assets. Key concerns include pronounced short-term volatility, inconsistent global regulations, cybersecurity risks, limited historical performance data, and difficulty integrating Bitcoin into traditional investment models. Rising inflation, geopolitical tension, and weakening confidence in certain fiat currencies are prompting pension funds to assess Bitcoin as a potential long-term portfolio complement or hedge.
Read at Cointelegraph
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