[kart23]

I agree that Bitcoin is never going to be used for payments again. But I still don't know about value store. Its hard to convert back to fiat (without paying taxes) unless you're going completely P2P with cash, which likely isn't feasible for large scale transactions. Is bitcoin's value negatively affected by difficulty cashing out, or am I overthinking it?

[briefcomment]

Overthinking imo. Compared to a bar of gold, it’s a breeze.

Convertibility to fiat is kind of a low priority for a store of value. Auditability, barriers to rehypothication, and ability to self custody are probably much more important for a store of value.

[benhurmarcel]

But virtually no individual puts his money into bars of gold. Gold isn't a good store of value for most people, and it's not because it's inconvenient. It's just that there are much better options out there.

So being a better store of value than gold isn't hard.

[briefcomment]

Gold stores $10 trillion. If only half of that moved to Bitcoin, a Bitcoin would be worth a quarter million.

Housing is sometimes a store of value. Bitcoin is probably more liquid, and way less of a hassle than some housing. Expect some of that to move over.

Fine art is primarily a store of value. A lot of it sits in airport warehouses. Bitcoin is just as scarce, but much more convenient.

Stocks are certainly being used as stores of value for many people. At some point, Bitcoin will become more reliable than index funds.

Idk much about bonds, but I'm sure some of that will flow to Bitcoin, as bonds become a less attractive investment.

[tootahe45]

> Is bitcoin's value negatively affected by difficulty cashing out

If people can't sell isn't that positive for the price? The whole 'hodl' thing is to stop people cashing out. Since crypto has no inherent value, the price is reliant on more people cashing in than out.