Bitcoin is store of value?

You pull over at a petrol station, fill your sixty litre tank with unleaded, and drive home. The next day, the needle shows that you only have thirty litres left in the tank. You suspect a leakage. However, after examining the car, the mechanic concludes that there is nothing wrong with the tank. "It simply fluctuated in volume overnight, as they tend to do". But you know that the petrol tank does not and cannot fluctuate; by the very definition of being sixty litres in volume, it will hold sixty litres of petrol. Because that is what store of value means: being of a certain size, capable of holding and storing a certain volume of liquid. It is simply common sense. In the past year, Bitcoin exploded in volume by six hundred percent, then all of a sudden, in the past six weeks, almost halved in value. A few weeks ago, one Bitcoin was worth more than one kilogram of gold. Today, it is worth five hundred grams. Where did your gold disappear to? Well, if you ask your financial adviser, who got you into Bitcoin in the first place, he would tell you the same bullshit that idiot car mechanic told you: "things fluctuate over time, hang in there, it will bounce". Which could be true, no one knows what the future brings. But we do know that STORE OF VALUE - whether that is a sixty litre petrol tank, a meter stick containing one thousand millimetres, a kilo of gold, or your 4 bedroom house - remain very constant over time. Houses don't grow in size. Land does not shrink or fluctuate. Clock dials will always show sixty seconds per minute. For that reason, we call them 'store of value'. Bitcoin is not a store of any value whatsoever. It is a speculative 'asset'. A pyramid scheme designed to suck you in. Surely, some gamblers will get rich in the process, but that is not because Bitcoin is store of value. Of course, every real asset from gold, land, houses to petrol, could also be manipulated and hyped. Here is what happened on the weekend: some lunatic just bought a fibro house in St Marys (suburb of Sydney near Penrith) for $1.81 million dollars!

Cheers.