Is Bitcoin a store of value?

There are many reasons to be interested in Bitcoin - and we outline the most common ones here - but it is undeniably the price that attracts the most attention. This is natural because people are always looking for ways to grow their wealth.

Bitcoin has so far proven itself a spectacular way to grow wealth over time. With an annualized return of 230% over the last decade, it performed 10 times better than the Nasdaq 100. But Bitcoin has also suffered from high volatility. For example, in 2014, it lost 58% of its value. In 2018, it dropped by 73%. Further, just because Bitcoin has performed well over the last decade, there's no guarantee it will continue to do so.

In recent years, the meme that Bitcoin may work as a "store of value" has gained traction. This has led to more and more people buying Bitcoin with the intention of holding it for a medium-to-long period. In this article, we will explore the store-of-value meme as it relates to Bitcoin, looking at the key arguments for and against it.