$BTC Digital Gold**: Bitcoin is often compared to gold due to its finite supply (21 million coins) and decentralized nature. Its scarcity and resistance to inflation make it an attractive hedge against fiat currency devaluation.
- **Volatility**: Despite its potential, Bitcoin remains highly volatile, with prices fluctuating dramatically in short periods. This volatility can deter mainstream adoption as a stable store of value.
---
### **2. Bitcoin as a Medium of Exchange**
- **Adoption**: While Bitcoin was originally envisioned as a peer-to-peer electronic cash system, its use for everyday transactions has been limited due to scalability issues and high transaction fees during peak times.
- **Layer 2 Solutions**: Technologies like the Lightning Network aim to address these challenges by enabling faster, cheaper transactions, potentially reviving Bitcoin’s utility as a payment system.