Bitcoinization. WHAT IS A STORE OF VALUE AND WHY $BTC COULD IT BE ONE? #Write2Earn

A store of value is an asset that, as its name suggests, maintains its value over time without depreciating significantly. That is to say, people use it to preserve wealth because it does not easily lose value and is resistant to inflation or economic degradation. In that sense, many today bet on Bitcoin (BTC) as a store of value.

-A store of value is used as financial backing and to diversify investments.

-Gold has historically been the main store of value due to its scarcity and durability.

-BTC shares essential properties of a store of value: scarcity, divisibility, and durability.

-Bitcoin offers a digital alternative to traditional stores like gold or cash.

-Large companies like Strategy and Tesla have incorporated Bitcoin into their reserves.

Interestingly, stores of value are very ancient and have existed practically since the beginning of civilization. Since ancient times, gold and silver have been used as a store of value: civilizations such as the Egyptians, Romans, and Mayans employed them not only as currency but as a symbol of wealth.

Today, although fiat money is accepted as a means of payment, its effectiveness as a store of value is quite questionable. For example, countries with uncontrolled inflation (like Zimbabwe or Venezuela) saw how their currencies lost this function.