Bitcoin [BTC], the largest cryptocurrency, crossed $5,000 and managed to stay above it for a long time. The coin’s value did take a hit due to the Bitfinex-Tether fiasco. The ups and downs in the market caused many to question the value of crypto in general, however, Jimmy Song, prominent Bitcoin influencer, talked about the volatility of Bitcoin and called it a ‘store of value.’
Even though the Bitcoin community hopes to replace cash with BTC, the non-adopters of crypto and even certain adopters do not equate the largest cryptocurrency with money due to its volatility. Song, in his recent Off the Chain video, tried to argue that Bitcoin is a store of value, like real estate and stocks and he noted that like any ‘store of value asset’ Bitcoin, too, was volatile but that did not make it less of a currency.
Song drew an analogy between Real Estate and Stocks, the traditional store of value assets, and Bitcoin. The volatility in the aforementioned markets was visible and the general public used these assets to save money.
The value of stocks fluctuates every day and there are certain levels of risk involved, however, people choose to make and store money. Bitcoin works in a similar fashion, according to the host, and stated that like real estate, Bitcoin has grown in value over the past 10 years.
The bitcoin influencer also equated Bitcoin to the US dollar and said that in many countries Bitcoin was held above the dollar. In terms of volatility, monetary inflation in the country was noted to grow by 6-7%, which is a true indicator of inflation, informed Jimmy. The skepticism with Bitcoin exists due to decent money flowing in its ecosystem and the change in its price is similar to the inflation that exists in the financial market.
However, he did not address the raging bull run that led to the surge in the price of Bitcoin to $20,000, and then its subsequent fall to its current value of just above $5k.
At press time, BTC had noted a fall of 0.30% in the past seven days and was valued at $5,301.53 with a market cap of $93.68 billion. The 24-hour trading volume of the coin was $12.58 billion and noted the growth of 0.62% over the past day. The coin continued to go up by 0.24% within the past hour.