Unveiling Bitcoin’s True Potential: The Power of Movement

Michael Saylor’s shift in focus from store-of-value assets to Bitcoin as the only non-defective asset highlights an important aspect of the market. While store of value assets like real estate can be beneficial for maintaining purchasing power, Bitcoin’s true power lies in its function as a medium of exchange.

The current financial system has increasingly separated the functions of money, but this does not mean that it should be that way. Bitcoin’s potential as a medium of exchange should not be underestimated, as it is a crucial aspect of its value proposition. By solely focusing on Bitcoin as a store of value, it runs the risk of being pigeonholed as “digital gold 2.0,” limiting its utility and adoption.

The importance of a medium of exchange cannot be overstated. Without the ability to transact and move Bitcoin easily, its value as a store of wealth diminishes. Consider losing access to your Bitcoin due to a lost private key – the inability to transact renders the store of value aspect useless. The market value of Bitcoin is predicated on its ability to serve as a medium of exchange, enabling it to retain value and liquidity.

In essence, Bitcoin’s value lies in its dual function as both a store of value and a medium of exchange. Viewing it solely as a store of value asset neglects its fundamental utility as a means of exchange. Embracing Bitcoin’s potential as a medium of exchange opens up new avenues for growth and adoption, ensuring its relevance in the evolving financial landscape. It is essential for investors and stakeholders to recognize this duality and leverage Bitcoin’s true power as a dynamic and versatile asset.