Bitcoin – The Ultimate Store of Value

Is Bitcoin truly a store of value? Absolutely!  And we will begin this article with a real-life example to help you grasp a better understanding of Bitcoin and how it can offer a better future for you and your loved ones.

Back on September 5, 2020, I was sharing information about Bitcoin with a childhood friend.  During our discussion, I gave him $100 cash and $100 worth of Bitcoin. Feel free to verify the Bitcoin transaction for 0.0096929 on the mempool. On that day, the price of Bitcoin was fluctuating between $9,880 and $10,500 and at the time I sent the payment, the amount was about $100 in Bitcoin.

Now here we are today (nearly 4 years later), with a Bitcoin price of approximately $60,000.  And the result?  The 0.0096929 Bitcoin that I gave my friend 4 years ago is now worth about $575.  And this while the $100 in cash that I gave my friend would be about $78.50 due to inflation.  See the screenshot below from www.usinflationcalculator.com for reference.

When we recognize and understand that the purchasing power of the US Dollar has dropped by 21.5% over the past 4 years, we can do an apples-to-apples comparison between Bitcoin and the Dollar. And depending on which asset my friend held, he would have a value of $78.50 if he kept the cash and $575.00 if he retained the Bitcoin. HUGE DIFFERENCE! This stark contrast highlights why Bitcoin is often considered a store of value, as well as digital gold.

By definition, a store of value is an asset that maintains its value rather than depreciating. Throughout history, the US Dollar and other fiat currencies have steadily and consistently lost value, a trend that is unlikely to reverse in our lifetimes. In contrast, Bitcoin has proven to be a reliable store of value, offering protection against inflation and depreciation.

The current debt-based monetary system we live under was designed to systematically extract wealth and limit earning potential. Henry Ford captured this sentiment when he said, "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.". The powers that be exploit the laziness and ignorance of the masses, creating a deeply flawed system. However, Bitcoin provides a promising solution—a way to preserve and even grow wealth in the face of these systemic issues.

Let’s briefly revisit the Bitcoin payment I sent to my friend back in 2020. The value of that Bitcoin today is over five times the amount that was gifted, thanks solely to Bitcoin’s price appreciation. Now imagine how much more that value could have grown if there had been a way to earn compounding interest on Bitcoin. A modest 5% APY could have increased the valuation from $575 to $710. At the time, no systems existed to offer returns on Bitcoin, but today, high-yield Bitcoin wallets are available that provide returns of 30% or more. These bitcoin wallets are now accessible, making it easier than ever to grow your Bitcoin holdings.

If the current price of Bitcoin feels intimidating, don’t let that deter you. Even at $60,000, you can purchase as little as $20 worth of Bitcoin and allow it to grow in value. Recall the $100 in Bitcoin I sent to my friend when Bitcoin’s price was around $10,000. That $100 alone has grown to nearly $600, demonstrating how even small investments can lead to significant returns without additional effort. Once you understand the asset, you can make informed decisions to secure your financial future.

With a new wave of innovation, cryptocurrencies are now much easier to acquire and use. In addition to this, cryptocurrencies can be extremely profitable if researched and managed appropriately. At Digital Crypto Solutions, we are here to support you on your crypto journey.

Whether you're new to cryptocurrencies and unsure how to get started, or a seasoned crypto enthusiast seeking low-risk, high-reward solutions to gain Bitcoin, contact us to schedule a consultation.