Coinspeaker
Should We Expect Bitcoin to Replace Gold as Store of Value?

Over the years, people have often converted traditional money to gold and other types of commodities to deal with inflation. In recent years, many have turned to digital assets as stores of value because they feel more confident about investing in innovative commodities.

Stores of value are defined as asset classes that maintain their value in the long run but are more volatile than fiat money. Traditional currencies are the best solution for daily transactions and work as mediums of preserving value in the short term, but they fail to retain value in the long run. Fiat money tends to lose value fast in periods of high inflation, which can lead to monetary systems breaking down.

More investors have become interested in countering the effects of inflation and have identified assets like gold, real estate, bonds, stocks, and blockchain-based commodities as the ideal mediums for the purpose. It’s wise to choose an asset that could appreciate in value over time. Stores of value are superior to traditional currencies and go through boom-and-bust phases. It’s essential to note that market conditions influence all of them; hence, their values are interrelated.

Seasoned investors know that they must add assets immune to market fluctuations to protect their wealt...