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This rising credibility as a medium of exchange supports Bitcoin values.Yet Bitcoin is not exactly a stable store of value.
It should be a stable store of value, enabling users to tuck some away and come back later to find its purchasing power more or less intact.
They point out that the euro is still untried, and that markets will need time before they trust it as a stable store of value.
William Dudley, president of the Federal Reserve Bank of New York, recently said he remained cautious about the digital currency, saying it was not a "stable store of value and it doesn't really have the characteristics that you'd like to have in a currency". Yet, he said, "it is something we are starting to think about: What would it mean to have a digital currency?
For it to be real money, Bitcoin must be a viable and stable store of value.
Even given that inherent flaw, it has been the most stable store of value for millennia.
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When inflation was soaring in the late 1970s, the search for stable stores of value led to a few legitimate, and many illegitimate, operations that lured retail investors into diamonds.
A stable crypto store of value enables streamlined trading without incurring dry-powder volatility risk".
They are aiming to develop a service that will provide the most trusted, stable storage of value on the blockchain.
Just to move the discussion one small inch forward (or backward, depending on your perspective): Bitcoin might eventually work as money, but not now: Speculators looking for quick profits have poured into the currency lately, leading to wild price swings that make it pretty much useless as a store of value or a stable currency.
A functioning monetary system must comprise three features — a unit of account that allows price comparisons for goods and services, a medium of exchange accepted as payment by buyers and sellers alike, and a store of value that remains stable over time.
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Justyna Jupowicz-Kozak
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