【Systematic Deduction of the Constant Characteristics of Gold and Bitcoin II】
II. Failure of Currency Functions and Market Fragmentation
1. Failure of Value Measurement
Currency Function / Bitcoin Performance / Comparison with Gold
Medium of Exchange / Transaction Speed 7 Transactions/Second (Visa is 24,000 Transactions/Second), High Congestion Fees Exceed $50 / Physical Delivery is Slow but High Liquidity After Financialization
Unit of Account /2021 Tesla Model 3 Price 0.8 BTC, 2025 Same Model Only Requires 0.08 BTC, Merchants Cannot Stabilize Pricing / Gold Product Pricing Requires Frequent Adjustments
Store of Value / 53% Drop in a Single Week in 2021, Over 20% Daily Volatility in 2024 / Annual Volatility Rate About 15%-20%
2. Controversy Over Hedging Properties
The Correlation Between Bitcoin and the S&P 500 Index Rose from 0.3 in 2020 to 0.7 in 2024, Falling Simultaneously During a Crash in the U.S. Stock Market (e.g., -37.2% in June 2022), Deviating from the “Digital Gold” Narrative.
Local Hedging Scenario: Only Shows Alternative Fiat Function in Countries with Hyperinflation (e.g., Venezuela, Turkey), but Trading Volume is Very Small.