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> Bitcoin as a digital store of value is fine. It is not. It has multiple >70% drawdowns over the last ~decade: * https://newhedge.io/terminal/bitcoin/price-d

> Bitcoin as a digital store of value is fine. It is not. It has multiple >70% drawdowns over the last ~decade: * https://newhedge.io/terminal/bitcoin/price-drawdown https://newhedge.io/terminal/bitcoin/price-drawdown During the 1930s US stock market crash, things went down 90% and, a century later, has never been that bad. Bitcoin has had multiple Great Depression equivalent drops in one-tenth the time. Something that is a good store of value should not be volatile: it should keep it's value, or at least be fairly predictable in the rate of decay.

gobindoriu 2y ago
How does a new thing become a store of value? Could it be that there is a path to medium of exchange ->store of value? -> unit of account? That could explain the volatility while the market prices it correctly
- throw0101d 2y ago
  > That could explain the volatility while the market prices it correctly Even if we grant that, Bitcoin has probably not reached that point (yet?).
bufferoverflow 2y ago
> Something that is a good store of value should not be volatile If it mostly goes up, it's still a good store of value, even if the volatility is high. So far it outperformed every fiat currency on the planet.
- throw0101d 2y ago
  > If it mostly goes up, it's still a good store of value, even if the volatility is high. So does the stock market, but if I want to buy a house in 2025, I don't keep my downpayment savings in the stock market but rather in a savings vehicle that protects the principal. I don't want something that goes down (or up) regularly if I want to store value: I want something that is predictable so when I go back to it to spend it (the whole point of currencies) I have a rough idea of what I'll have to work with. > So far it outperformed every fiat currency on the planet. The point of currencies is not performance but stability.

gobindoriu 2y ago

How does a new thing become a store of value? Could it be that there is a path to medium of exchange ->store of value? -> unit of account? That could explain the volatility while the market prices it correctly

throw0101d 2y ago
> That could explain the volatility while the market prices it correctly Even if we grant that, Bitcoin has probably not reached that point (yet?).

bufferoverflow 2y ago

> Something that is a good store of value should not be volatile If it mostly goes up, it's still a good store of value, even if the volatility is high. So far it outperformed every fiat currency on the planet.

throw0101d 2y ago
> If it mostly goes up, it's still a good store of value, even if the volatility is high. So does the stock market, but if I want to buy a house in 2025, I don't keep my downpayment savings in the stock market but rather in a savings vehicle that protects the principal. I don't want something that goes down (or up) regularly if I want to store value: I want something that is predictable so when I go back to it to spend it (the whole point of currencies) I have a rough idea of what I'll have to work with. > So far it outperformed every fiat currency on the planet. The point of currencies is not performance but stability.