AN ASPIRATIONAL STORE OF VALUE
Bitcoin can be described as an aspirational store of value-creating value as it matures into a store of value.
An analogy is that investing in bitcoin today is akin to investing in Facebook when it had 50 million users with the potential to grow to the more than 2 billion users it has today.
“Bitcoin is the most significant innovation in finance since the Medicis invented double-entry accounting.”
– BRIAN KELLY, BKCM
This is driven by the idea that bitcoin offers asymmetric upside. If bitcoin is widely adopted by retail and institutional investors as a store of value, the upside may be substantial relative to the initial upfront investment.
Today, bitcoin is relatively nascent and has a narrow base demand compared to a global store of wealth such as gold. Stakeholder perception of its value and potential is also still evolving.
However, the rationale of investors for establishing exposure now is that it will be a much larger market if it is widely used as a store of value in the future.