Long-Term Store of Value

Definition ∞ A Long-Term Store of Value is an asset that retains its purchasing power over extended periods, resisting inflation and economic volatility. Traditional examples include gold and real estate, valued for their scarcity and durability. Bitcoin is often proposed as a digital alternative, valued for its decentralized nature and limited supply.
Context ∞ The current discussion centers on Bitcoin’s effectiveness as a hedge against inflation and its increasing acceptance among institutional investors as a portfolio diversifier. A key debate addresses the volatility inherent in cryptocurrencies compared to traditional, less liquid assets. Future developments depend on continued network security, broader market adoption, and regulatory clarity influencing its stability and perceived reliability.