What is a Store of Value?

A store of value is an asset or currency that serves as a safe for your purchasing power due to its power to hold value without depreciation. Some examples are real estate, gold, and other powerful currencies, which can withstand economic uncertainties and inflation.

To consider an asset as a store of value, it should either be worth the same or worth more than its price or value in the future. 

Why BTC is a good Store of Value

Bitcoin (BTC) is a good store of value because it shares key characteristics with gold, such as scarcity and durability. Like gold, Bitcoin is limited in supply, with only 21 million BTC ever to be created, ensuring it remains rare and valuable. BTC’s fixed supply prevents inflation, unlike physical cash and fiat currencies, which can be printed in unlimited amounts, thus a possible negative impact on its value.

Additionally, Bitcoin's digital nature ensures its durability and security through blockchain technology, making it a reliable means to preserve wealth over the long term.

Disclaimer: The information provided in this research paper is for educational and informational purposes only. It does not constitute financial advice, investment guidance, or any solicitation to buy or sell financial instruments. The views expressed herein are those of the authors and do not necessarily reflect the opinions of Kollectiv.