Bitcoin
is increasingly attracting the attention of investment circles, both for a more profitable investment and for the trading of goods and commodities. This is similar to the adoption process of asset classes such as gold, real estate or bonds. In this sense, it is possible to say that bitcoin has become the new investment class, especially for the Y generation.
Demand – Supply Balance
To understand whether Bitcoin is a store of value, it is necessary to evaluate a few of its main benefits. Bitcoin does not require cost, time to be managed by individuals, government and banks. The second important issue is the time spent buying, selling, or exchanging bitcoin for local currency. You can perform all of these operations in a matter of seconds. The global use of bitcoin, the increasing number of uses day by day, the fact that it is a secure and anonymous store of value makes bitcoin even more popular. Third, bitcoin
Since it
is blockchain-based, the security of personal information is ensured at a high level when making transactions. This also makes the control of any central authority such as the government or corporation quite ineffective, meaning that bitcoin is a decentralized platform. For example, while governments can impose sanctions on bank accounts, this is not the case with bitcoin. In other words, there is no control, managing, controller, or agent for the system. The system consists only of interconnected computers and volunteer participants.
Everything is clear on the Bitcoin network. All computers are open source and all run the same program, everyone on the network sees all the transactions that take place, and they can even keep records if they want. In addition, financial decisions by governments (such as demand or restriction of money) can affect the value of money in the bank (inflation and deflation). There is no such situation in Bitcoin, there is no external demand for money in the system, so there is no inflation. The money supply in the system is given as a reward to the miners.
Fourth, the set cost to pay for transactions is low or free of charge, as opposed to using a card. Therefore, there is a growth in the demand for bitcoin, but the amount of bitcoins to be produced is limited. While the number of bitcoins produced so far is 18.5 million, the total number of bitcoins that can be produced is limited to 21 million. So bitcoin can be produced up to 21 million units.
Countries and institutions have also realized the importance of all crypto coins, especially bitcoin, and blockchain technology and have started to make breakthroughs in this direction. Central bank digital currencies may be just one example for these breakthroughs.
As a result, it is possible to say that bitcoin is a store of value. The reason for this is the blockchain technology, which brings many revolutionary new technologies underlying crypto coins to our lives. When we load value as a technology, we can say that the future of bitcoin and other coins is bright and these values will take more place in our lives.
