Bitcoin: Exploration and Reflection on Value Storage

CN
2 days ago

A few years ago, a senior figure in the industry whom I admire casually mentioned (in essence): he believes the future of Bitcoin is somewhat dangerous. Many of the "titles" and "labels" we attach to Bitcoin are actually debatable.

At that time, I was quite shocked to hear this statement and couldn't believe that this senior would say such a thing.

Even today, I don't quite agree with that statement.

However, since then, this statement has often lingered in my mind, prompting me to occasionally think about every detail of Bitcoin.

Recently, a chance case suddenly touched me.

While chatting with a friend, he casually mentioned that several years ago he developed a habit of spending around ten thousand yuan each year to buy some small gold bars or gold nuggets to throw in a corner, regardless of the gold price, whether it rises or falls, to give to his next generation years later.

My friend said he doesn't understand stocks and doesn't dare to invest too much money in financial products. His life is not tight, but he doesn't have much extra money. After thinking it over, he didn't know what to do with the occasional extra money, so he simply decided to take a portion and buy some gold. After all, this amount of money doesn't affect his life at all, and he doesn't expect it to change his life in any significant way.

In his daily life, no one tells him how precious, rare, and valuable gold is, or whether it will appreciate in the future.

But his most straightforward behavior is a true reflection of treating gold as a "store of value."

I guess this might be the awakening of his deep-seated impression of gold, accumulated over 5,000 years of history?

In contrast, most of us in the crypto ecosystem, while loudly proclaiming "Bitcoin is a store of value," when it comes to buying Bitcoin and leaving it for 10 years without any concern, many still complain about "waiting too long" or "the time is too long," and may even secretly worry, "Will it go to zero?"

On one side, there are ordinary people who buy gold without any further concern; on the other side, the vast majority of crypto asset participants who promote Bitcoin daily are constantly watching the price fluctuations of Bitcoin.

Which of these two behaviors truly treats the investment target as a "store of value"?

A comment from a reader in the comment section struck me as very insightful:

"Most people don't dare to buy it (Bitcoin) for value storage; they just want to obtain more fiat currency."

Because of these experiences, I shared some of my recent thoughts on Bitcoin in yesterday's article.

As for the future, I believe more and more people will enter the crypto ecosystem. So when more people join this ecosystem, will Bitcoin's attributes resemble more of a "collectible" or more of a "digital gold as a store of value"?

We'll leave that for time to test.

Personally, I tend to think it resembles more of a "collectible." It is an unparalleled beautiful technological masterpiece created by humanity for the first time using technology. It has created a decentralized world and opened up an on-chain era that has never existed in human history.

Since it is a collectible, its value must be closely related to the ecosystem:

As more people enter the crypto ecosystem and it becomes more prosperous, the value/price of this collectible will increase; but as fewer people enter the crypto ecosystem and it becomes more sluggish, the value/price of this collectible will decrease.

This has little to do with concepts like risk hedging or safe havens.

If we follow this line of thought, we should focus on how to prosper the crypto ecosystem and promote its healthy growth.

To prosper the crypto ecosystem and promote its healthy growth, we must focus on examining products and services that can truly provide service/value and generate cash flow.

I believe the future of this collectible is bright because I believe the crypto ecosystem can provide great services and value, and on-chain giants like Nvidia and Apple will definitely emerge in the crypto ecosystem.

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