If Crypto Prices Are so Volatile, Why Do People See Crypto as a Store of Value?

You’re jumping into the chaos and wondering why folks think it’s a treasure chest, right? Well, buckle up. People see crypto as a store of value for a couple of spicy reasons.

First off, there’s the whole decentralization thing. Crypto is not tied to any government or central bank, which makes it appealing to those wary of traditional financial systems. It’s like the rebellious teenager of the financial world, flipping off the establishment.

Then, there’s the magic of scarcity. Take Bitcoin, for instance: only 21 million coins can ever exist. So, it’s sort of like digital gold—people think it’s going to be valuable just because you can’t print more of it willy-nilly.

Who sees Crypto as a Store of Value?

The US government and others are now showing Bitcoin that same respect in the form of ETFs. Bitcoin has been traded in the commodity market for years before that. Like gold, it usually works as a hedge against inflation.

Next up, we’ve got the tech enthusiasts who are betting big on blockchain’s bright future, they are hoping it’ll be the digital backbone of tomorrow. Beyond crypto as a store of value, they see crypto as having intrinsic value because it powers this nifty tech.

Of course, there are the thrill-seekers drawn to the rollercoaster of crypto’s price swings—the volatility is more of an adrenaline rush than a deterrent for them. Yes, prices fluctuate. So do the prices of stocks, gold, and houses. Every market fluctuates. Crypto just does it a lot. It’s a blooming financial market, but it’s so much more than that.

People who are new to this space, just like you, are trying to find the element that means the most to them. There are many reasons to view crypto as a store of value, and more are popping up all the time as developers find more use cases for the tech.

Crypto is a store of value.