2020-12-6 00:08 |
Bitcoin is not viable as a store of value.
That’s according to Steve Forbes, Editor-in-Chief of the Forbes Magazine. Apparently, Steve is all for Gold as a long-term store of value. However, he agrees that Bitcoin’s major success stems from the actions of central banks by printing a lot of money and causing inflation. Steve Forbes was sharing his thoughts via his YouTube channel named “What’s Ahead.”
Steve Forbes is the son of Malcolm Forbes who was the publisher of the Forbes magazine, founded by his father B. C. Forbes. As such, Steve grew up in a well-off family and now runs the magazine. Steve Forbes is not an economist, so his beliefs are just personal opinions not backed by any professional analysis.
Too VolatileIn Steve’s opinion, Bitcoin’s volatility makes it not suitable for long-term wealth holding. In that sense, Steve thinks the top coin is not the right choice of an asset to maintain family wealth.
Indeed, Bitcoin’s price has seen quite a few ups and downs over the years, but a look at the larger projections reveal that the crypto has always been increasing in value.
Bitcoin’s current value is way higher than it was 5 years ago. In fact, Bitcoin’s rise in value has made some people billionaires. A case in point is the Winklevoss twins.
BTC’s Supply Limit Hinders Its Future GrowthSteve went on to argue that one of the huge obstacles preventing Bitcoin from becoming a good store of value is its supply limit.
BTC’s supply limit is capped at just 21 million coins. On the other hand, Gold’s global supply increases at a rate of 2% every year.
However, Steve didn’t mention that, just like Bitcoin, Gold’s supply in the world isn’t really as infinite as usually claimed. At one point, its supply will diminish as well.
Steve Forbes wasn’t entirely dismissive of Bitcoin as a store of value. He agrees that the crypto could iron out its quandaries and come out on top at some point in the future, “but that day is not yet here.” Bitcoin could very well evolve into the new Gold.
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