Digital gold (store of value)

"Digital gold" is the idea that bitcoin can work as a store of value much like gold: a scarce asset that people hold to preserve wealth over long periods, rather than mainly to spend. A store of value is any asset expected to keep its purchasing power without decaying or being diluted.

Supporters point to bitcoin's fixed supply of just under 21 million coins, its predictable issuance, the fact that no government or company controls it, and how easily it can be stored and moved across borders compared with physical gold. The launch of spot bitcoin ETFs in the US in January 2024 and the adoption of bitcoin by some companies' treasuries have strengthened this narrative.

Critics note that bitcoin is far more volatile than gold, has a much shorter history and has sometimes moved in line with risky tech stocks. Whether it is a reliable store of value depends heavily on your time horizon.