Bitcoin Store of Value

Definition ∞ Bitcoin store of value refers to Bitcoin’s capacity to maintain its purchasing power over extended periods. This attribute is supported by its fixed supply schedule, decentralized nature, and resistance to inflation through its programmed scarcity. Many investors hold Bitcoin with the expectation that it will retain or increase its value, similar to traditional assets like gold. Its digital scarcity and global accessibility contribute to its appeal as a long-term wealth preservation tool.
Context ∞ The debate surrounding Bitcoin’s effectiveness as a store of value frequently appears in financial news, particularly during periods of economic uncertainty. Critics point to its price volatility, while proponents highlight its limited supply and increasing institutional adoption as evidence of its enduring value. Future news will likely focus on Bitcoin’s performance during market downturns and its continued acceptance by major financial entities.