What Happened To Bitcoin: A Store of Value - Cryptocurrency Reporters - A Light To Cryptocurrency World

Friday, 6 April 2018

What Happened To Bitcoin: A Store of Value


What Happened To Bitcoin: A Store of ValueIf you look at the BTC/USD chart, you see an unmistakably distinct shape. A trickling upwards leads leads to a sharply slowed exponential curve, followed by an equally steep decline.The amount of BTC in existence is knowable/known by the market at any particular point in time. This is really to say that we know the amount of BTC in existence is finite.As such, to see the shape that we see there likely at least means one thing: The rate of asset inflow into BTC must have increased. People were increasingly desiring to exchange other assets for BTC.But why?Some may have liked the fact that it could be used on sites like SilkRoad. Some may have coveted the anonymity it may provide.But weren't we talking about the rate increasing? Yes. So why did the rate of asset inflow into BTC increase?My hypothesis: People began to look at BTC not for its qualities as a currency, such as anonymity or ease-of-illicit-use, but as a store of value.The increase came from people beginning to believe that it was a good store of value. The increase is not from increased use of BTC as a currency, but its use as an instrument to store value.And what an at least initially so promising one?But there are good reasons to doubt that its that anonymous, and governments are increasingly attempting to make it a financially regulated asset like any other.In other words, there are now serious reasons to doubt it's value as a good store of value; perhaps it's just a currency, and if so you can expect the BTC price to drop back to levels from before you see the massive inflow assets.However; I think BTC should embrace a path that leads to being a store of value. via /r/Bitcoin https://ift.tt/2GFWOaQ

If you look at the BTC/USD chart, you see an unmistakably distinct shape. A trickling upwards leads leads to a sharply slowed exponential curve, followed by an equally steep decline.

The amount of BTC in existence is knowable/known by the market at any particular point in time. This is really to say that we know the amount of BTC in existence is finite.

As such, to see the shape that we see there likely at least means one thing: The rate of asset inflow into BTC must have increased. People were increasingly desiring to exchange other assets for BTC.

But why?

Some may have liked the fact that it could be used on sites like SilkRoad. Some may have coveted the anonymity it may provide.

But weren't we talking about the rate increasing? Yes. So why did the rate of asset inflow into BTC increase?

My hypothesis: People began to look at BTC not for its qualities as a currency, such as anonymity or ease-of-illicit-use, but as a store of value.

The increase came from people beginning to believe that it was a good store of value. The increase is not from increased use of BTC as a currency, but its use as an instrument to store value.

And what an at least initially so promising one?

But there are good reasons to doubt that its that anonymous, and governments are increasingly attempting to make it a financially regulated asset like any other.

In other words, there are now serious reasons to doubt it's value as a good store of value; perhaps it's just a currency, and if so you can expect the BTC price to drop back to levels from before you see the massive inflow assets.

However; I think BTC should embrace a path that leads to being a store of value.

If you look at the BTC/USD chart, you see an unmistakably distinct shape. A trickling upwards leads leads to a sharply slowed exponential curve, followed by an equally steep decline.The amount of BTC in existence is knowable/known by the market at any particular point in time. This is really to say that we know the amount of BTC in existence is finite.As such, to see the shape that we see there likely at least means one thing: The rate of asset inflow into BTC must have increased. People were increasingly desiring to exchange other assets for BTC.But why?Some may have liked the fact that it could be used on sites like SilkRoad. Some may have coveted the anonymity it may provide.But weren't we talking about the rate increasing? Yes. So why did the rate of asset inflow into BTC increase?My hypothesis: People began to look at BTC not for its qualities as a currency, such as anonymity or ease-of-illicit-use, but as a store of value.The increase came from people beginning to believe that it was a good store of value. The increase is not from increased use of BTC as a currency, but its use as an instrument to store value.And what an at least initially so promising one?But there are good reasons to doubt that its that anonymous, and governments are increasingly attempting to make it a financially regulated asset like any other.In other words, there are now serious reasons to doubt it's value as a good store of value; perhaps it's just a currency, and if so you can expect the BTC price to drop back to levels from before you see the massive inflow assets.However; I think BTC should embrace a path that leads to being a store of value.

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