Since 2010, bitcoin has died 377 times at the hands of experts and popular media outlets. At the height of the bear market in 2018, bitcoin was declared dead a total of 90 times.
We are hurtling towards the end of 2019 and bitcoin is doing so well that it managed to carve a niche in today’s financial system. We talked to crypto traders, blockchain executives and researchers and they all agree that the cryptocurrency offers a strong value proposition. This unique quality enables the digital coin to overcome a number of its shortcomings.
Since its inception in 2009, the king of cryptocurrencies has grown by nearly 164,000%. This is why distributed ledger technology (DLT) expert The Crypto Oracle was certain that bitcoin has proven itself as a solid store of value. The researcher told CCN.com,
I would argue that Bitcoin has proven a good store of value if viewed over a long time frame. Since its existence, it’s been the best performing asset in the world.
The DLT researcher added,
It’s on the way to being the only non-correlated store of value (SOV) asset in the market, something that is especially valuable in such financial uncertainty around the world.
Speaking of financial uncertainty, Enzo Villani, chief strategy officer of Transform Group, agrees that bitcoin has become a strong SOV in times of indiscriminate quantitative easing. He said,
The World Bank and its members are discussing global quantitative easing, and we are at a point where printing money is now a common practice globally and coordinated by governments.
The executive then emphasized,
One more huge crisis and we will see a shift toward bitcoin by major money.
In terms of growth, Robert Beadles, president of Monarch, echoed The Crypto Oracle’s statement. He said,
If you look from the conception of bitcoin through today, it has proven itself as one of the most profitable asset classes of all time.
On the topic of being a proven store of value, many crypto traders see bitcoin’s potential. Hans HODL, senior quantitative researcher at Ikigai, is one of them. He said,
Bitcoin has the potential to become one of the greatest stores of value of all time.
Galen Danziger, CTO and co-founder of full-service blockchain accelerator MouseBelt, shares the same thoughts as he said,
Bitcoin has proven itself as a store of value. While it is less predictable in buying power compared to the US dollar on a short time frame, it is a strong alternative to other currencies and gold.
Sean Barger, managing director of CPUcoin has the same line of thinking. He told CCN.com,
People are using [bitcoin] every day en mass. I believe more and more people are starting to realize the store of value and speed of liquidity & transfer, which is generally the benefit of all cryptocurrencies which will drive buying demand.
Bitcoin is far from perfect. Even those in the cryptocurrency industry see the digital coin’s flaws. For instance, Cole Garner thinks that bitcoin is still quite young. The analyst told CCN.com,
The infrastructure needed to make bitcoin a usable medium of exchange has a long way to go, but it’s getting there.
Jonathan Zeppettini, international ops lead for Decred, mentioned another shortcoming. He said,
What bitcoin has failed to do is offer a means of preventing minority forks that fracture the network and the community. The inability to give holders a legitimate means of participating in the process of defining Bitcoin means that groups will keep splintering off.
On top of that, Trader Max doesn’t think that bitcoin is a reliable payment solution yet. The trader said,
Did it successfully become a payment network? Not yet.
Sure, the number one cryptocurrency has a few deficiencies. However, these imperfections do not matter because bitcoin has proven to be the best store of value over the last decade.
Disclaimer: The above should not be considered trading advice from CCN.com. The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Last modified: May 20, 2020 12:08 PM UTC