Maximizing Bitcoin Price for Store of Value and as Medium for Daily Transactions

Cryptocurrencies are digital assets that provide individual ownership without government monetary policies or rules. Another school of thought defines cryptocurrencies as a means of market exchange since it allows payment between individuals without financial institutions’ influences.

While it is true that cryptocurrencies can be used as a means of transaction, can they replace fiat currencies in daily exchange? Although some big organizations accept cryptocurrencies as a medium of a transaction while others argued its sustainability. Hence this post provides research-based information on Crypto perception as a store of value or as a medium for daily transactions.

Is Cryptocurrency Used as a Store of Value or Medium for Daily Transactions?

Either you are storing your coins for value or buying and selling by engaging in daily transactions, it is first an asset.

When you hold your coins, you are storing up values relating to your country’s exchange rate. For example, you purchased a land for $1000 in 2018, and you wait ten years later to sell it off, you are keeping your asset as value. In ten years, the land would have doubled in price or appreciate its current value.

However, if you sell your coin and buy from another trader, it serves as a daily transaction.

You may ask, is Cryptocurrency more a store of value or medium for the daily transaction? The primary aim of almost every Crypto trader is to store up some values for the future. Traders who buy and sell daily work towards increasing the asset value. When the market crashes, they calculate their coin increase if they sell or buy. In other words, Cryptocurrency is a store of value either you hold your coins or buy and sell daily. However, an exception is in big organizations that allow commodity purchases using Bitcoins from Bitvavo. In this case, the coin purchases a commodity. Whether it rises in the nearest future, it does not meet the initial value.

Cryptocurrency as a Store of Value

Today, many people argue about Cryptocurrency’s purpose as a store of value and its comparison with assets like shares, bonds, or treasury bills.

Many investors are known to store wealth in bonds, stocks, or real estate. In the millennial age, these assets get interwoven and present little returns on investment. Hence wealth storage requires a new model. As a result, cryptocurrency came into the market.

Does cryptocurrency share the same features as shares and bonds? No, but they all are classified as assets to every investor.

Cryptocurrency is a store of value that enables traders to sell off assets in the future without depleting in value. When a country experiences frequent inflation, she is bound to lose her monetary value in years to come. Hence, the main setback of paper money, which contributes to the innovation of digital assets. Since digital assets evolvement, investors risk huge money into Crypto.

Cryptocurrency is a leading investment with various crypto platforms. It has a high volatile rate and increases or decreases rapidly. Monitoring the market growth can be tricky, but millennials put so much trust in Cryptocurrency’s high return rate. Traditional store of value assets like gold and fiat currencies like euros, dollars had been in the economy for a long time until the innovation of digital assets.

For Millennial and Gen Z generations, here is a better store of value asset. It requires no large vault, expensive amount, nor price limitations.

Cryptocurrency as a Medium for Daily Transaction

Cryptocurrency refers to the digital currency that derives its value from technology proficiency and not federal policies or institutions. In some parts of the world, cryptocurrency is an exchange for fiat currency, while many other retailers do not accept it for transactions yet.

When Crypto investors aim to buy a coin at a low price and sell at a higher price, they carry out certain transactions. However, there are no proven facts yet if Cryptocurrency can be a worldwide daily transaction in many years to come. Hence, many investors maximize Crypto-assets as a store of value.

If you are looking for a store of value to build wealth, consider an asset that does not have a wider supply gap than its demand. A readily available currency would lose its value at a fast pace. Hence, sign up for a crypto wallet on any platform of your choice, and acquire enough wealth for the future. If you are new to the Crypto term, today provides an opportunity for you.

Share This: