By definition store of value means "its ability to purchase other assets in the future without rapidly losing its purchasing power" yet bitcoin has in instances halved it's value. So, no not a store of value.
It’s true that, due to its volatility, Bitcoin is currently not a good store of value, at least in the short term. There’s an underlying truth, though, which is that Bitcoin is a potential store of value. In particular, it has all the necessary qualities of a monetary good, among them durability, divisibility, portability, verifiability, and above all scarcity.
Buying Bitcoin right now involves speculating that others will also see this potential, which is why it’s accurate to describe it for the moment as a speculative asset. The reason buying Bitcoin is a smart bet is that its monetary properties are so good that it has the potential to store a significant percentage of the world’s savings. Once that happens, its volatility will be much lower, so it will be a good store of value. And of course its purchasing power in current U.S. dollars will be much, much higher, which is why it’s a good idea to buy some now.
Namer of tau and founder of Tau Day. Author of the Ruby on Rails Tutorial and cofounder of Learn Enough (acquired 2022). YC alum (W08). Find me online at michaelhartl.com, on Twitter at @mhartl, or via email at michael@michaelhartl.com.
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Buying Bitcoin right now involves speculating that others will also see this potential, which is why it’s accurate to describe it for the moment as a speculative asset. The reason buying Bitcoin is a smart bet is that its monetary properties are so good that it has the potential to store a significant percentage of the world’s savings. Once that happens, its volatility will be much lower, so it will be a good store of value. And of course its purchasing power in current U.S. dollars will be much, much higher, which is why it’s a good idea to buy some now.