Jimmy Song, a rather well-known name in the Bitcoin trading circuit and a developer himself has recently aired his own views about Bitcoin’s much discussed volatility (the quality of Bitcoin’s price moving so much). In commenting about the same, he has referred to this cryptocurrency as a “store of value”. He even compared this form of asset to real estate.
Although Bitcoin was built as a crypto “currency”, something that would act as an alternative to fiat currency or regular money, a large number of economists and experts claim that Bitcoin does not qualify the traits of money and is way too volatile to be able to take over fiat.
However, in a Off the Chain video, Jimmy Song has recently argued that Bitcoin is much like real estate of stocks in that it is a “store of value asset”. Just because Bitcoin is volatile, it is not to be written off as a legitimate currency.
To substantiate his argument, Jimmy Song drew parallels between Bitcoin, real estate and stocks. Real estate and stocks are the usual ways to store value and he thinks Bitcoin is quite similar to them.
He said that volatility was a common feature in these traditional ways to store value as well, and that had posed no problem as far as their popularity was concerned. Considering that the common people are already quite used to saving money by investing in stocks and real estate, there is no reason why they should not use Bitcoin as well.
He also pointed out how Bitcoin, like real estate, had seen a value augmentation over the last few years, making it a rather suitable choice for investment. In fact, Jimmy Song believes, Bitcoin has the potential to take on the US dollar so far as effectiveness as a store of value is concerned. In countries having “bigger monetary base inflation”, it might actually manage to outrun the US dollar itself.