The argument of the reserve of values is important because it answers the biggest question that surrounds Bitcoin: How much is it worth?
A stock store is worth what people will pay for it. Although gold has some use as an industrial metal and in jewelry, it would not be sold at US $ 1,300 per ounce according to those uses only. It is worth US $ 1,300 per ounce because people are willing to pay US $ 1,300 per ounce as a value reserve.
If you accept Bitcoin as an emerging value reserve, you can look at the current price and argue that it is cheap. The current limit of the Bitcoin market, the value of all Bitcoin in existence, is US $ 143 billion. The current limit of the gold market is around US $ 7.5 trillion. In other words, Bitcoin is storing around 2% of the gold's wealth.
Let's put it to 10 years: as the digital world becomes a growing part of our lives, and millennials reach their main age range to save, it is not hard to imagine a world in which Bitcoin has 1 / 10 of the value of gold. That would imply a price increase of 500%, from current levels of around US $ 8,000 to around US $ 40,000.
Could the value of Bitcoin be equal to gold? That would suggest a figure of at least US $ 400,000.
Do not listen to people who say that Bitcoin will never be a store of value. In fact, Bitcoin is on the right track, following in the footsteps of all the other significant value stores that have come into the world. There is no guarantee that you will stay on that path, but if you do, the opportunities are endless.
I like your take on this. However, bitcoin would need to be accepted by the entire world as a commodity before it can be considered something similar to gold. I am not sure if that will ever happened because of all the flaws it is currently facing... I am sure that some type of cryptocurrency could become similar to gold, but we would also need to figure out a new energy source to sustain the blockchain anyways. Too many problems right now to make any bold claims...
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Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://www.forbes.com/sites/matthougan/2018/05/23/what-golds-history-teaches-us-about-bitcoin-as-a-store-of-value/