Prominent trader Peter Brandt has recently said that Bitcoin is a store of value just like gold, silver or any other precious metals. Along with this, he also said that all the precious metal holders need to have Bitcoin as well. This cannot be denied that due to the scarcity and decentralization of Bitcoin, it is counted as a store of value. The major feature of Bitcoin that contributes is its portability and along with this, its nature of appreciation.
— Peter Brandt (@PeterLBrandt) September 27, 2020
Views of Brandt Shadowed By Gresham’s Law
It has been seen that people are talking about Bitcoin adoption and are also moving rapidly towards other digital currencies as well. However, there are a lot of people out there who are quite skeptical about the scalability and volatility issues related to Bitcoin. Another major reason is Gresham’s law that is keeping them away from Bitcoin adoption and shadowing the views of Brandt regarding Bitcoin.
According to this law, bad money drives out the good money and because of this, they are unable to give up on their traditional money. Michael Saylor, CEO of MicroStrategy, has recently acquired $425 million worth Bitcoins. He does not care whether people are able to purchase anything using Bitcoin or not. This is because according to him, Bitcoin is not meant to be a medium of exchange.
Gold Has Been Store of Value Since Thousands of Years
Even though Bitcoin is having a huge potential as a store of value, there are several gold bugs who oppose this idea. It has been seen that gold as a precious metal has remained as a store of value since thousands of years. Moreover, with the COVID-19 pandemic, there is a huge threat to the global status of Dollar as the world’s largest reserve currency. In this regard, Brandt has agreed that Bitcoin is not in a position to serve this role already.