Bitcoin is a ‘store of value’ and why it is compared to ‘digital gold.’
A store of value is any commodity or asset that normally retains purchasing power into the future and is the function of the asset that can be saved, retrieved, and exchanged at a later time and be predictably useful when retrieved. The purpose of any store of value is to manage risk by ensuring a consistent demand for the underlying asset. Money, currency, or a commodity such as a precious metal or financial capital have been the most common stores of value in modern times. Money is one of the best stores of value due to its liquidity, or the ease with which it can be exchanged for other goods and services. The total of all stores of value, including both monetary and nonmonetary assets, constitutes an individual’s wealth.