"Bitcoin is not a store of value because it can drop 20% within a day."
You have heard this argument so many times.
It's bitcoin denier's last resort, it's his/her last line of defence... 😀
That's true, bitcoin's daily volatility is high compared to gold's.
However, the denier "forgets" to mention that a few days (or even a day) afterwards the -20% dip, bitcoin pumps by +30%...
My point is, bitcoin's daily volatility is irrelevant, let me repeat this:
Bitcoin's daily volatility is irrelevant.
The reason is very simple:
you don't want to preserve your money's value for a single day, but in the long run...
So, let's look in the following chart, how well a US dollar's value has been preserved so far by bitcoin and gold since bitcoin's inception in 2009.
1$ value of 2010 was preserved by bitcoin with $48,821,300 in 2021.
While, 1$ value of 2010 was preserved by gold with $1.79 in 2021...
And they still tell you bitcoin is not a store of value, because of its high daily volatility...
What's the problem with deniers?
But, why deniers carry on repeating this ridiculous argument?
They certainly are not stupid.
I strongly believe the explanation is psychological.
They need an excuse to justify themselves for not buying bitcoin at an earlier stage.
This excuse gives them a false feeling of mental stability.
Especially those deniers who have an educational background in economics exhibit this condition in a more severe way than others.
I seriously consider this behaviour as a soft mental illeness...
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I am not writing this article to mock these people.
Mental conditions (however soft) deserve to be treated with respect.
So, if you have friends in this category, you can do something to cure them.
Try gifting them bitcoin on their next birthday.
Buy a hardware wallet, it won't cost you more than $50, buy bitcoin of (let's say) $50 worth, store it in the wallet and hand it over to them.
That's the best you can do for your friends mental stability!
PS. If you would like to, you can follow me on:
🚩 twitter: https://twitter.com/cryptovios1
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🚩 3Speak: https://3speak.co/user/cryptovios
🚩 Torum: https://torum.com/u/cryptovios
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