Would Bitcoin or another crypto other than stablecoins shifting towards a store of value be a chicken and egg situation, or a self stabilizing effect?
Its volatility range needs to tighten drastically for it to be considered in the same way gold bullion is as a safe long term storage value. Last price sets the value though for crypto, whereas gold price is set by the IBA based on a variety of sophisticated factors. I don’t think something with a price that changes based on instant market movement is where one wants to put significant amounts of money with expectation of conservative price movements over a wider timescale. They want history of stability. Bitcoin can’t give history of stability until it’s dead or on long term life support.
There’s already stablecoins pegged to fiat, not without their own range of issues and negative risk factors, but a gold equivalent crypto currency pegged to the price of physical gold could be interesting if executed and backed correctly. Who gets to create this though, sounds problematic.
It’s estimated there is currently 2.5 billion ounces of gold bullion worldwide, estimated to be worth 5 trillion USD. Bitcoin’s market cap is currently just shy of one trillion. I think bitcoin’s market cap is too high for it to operate as a storage value even when disregarding the pricing issue. That’s too big of a mountain of speculator money seeking profits to move over to a stability side. While holders add stability against value decreases, majority have take profit targets converging with their living timeline. They’ve got eyes for gold jewelry, gold filled electronics, and travel in gold filled aeronautical equipment to pay for.
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