Why is Bitcoin often used as a store of value against the US dollar?

3 answers

• eunsoo LeeMay 04, 2024 · 2 years ago
  Bitcoin is often used as a store of value against the US dollar due to its decentralized nature and limited supply. Unlike traditional fiat currencies, Bitcoin is not controlled by any central authority, making it resistant to government interference and inflation. Additionally, Bitcoin has a fixed supply of 21 million coins, which creates scarcity and can potentially increase its value over time. This makes Bitcoin an attractive option for individuals looking to protect their wealth from the devaluation of the US dollar.
  527

  264
• jokerzzjJan 19, 2025 · a year ago
  People use Bitcoin as a store of value against the US dollar because it offers a hedge against economic uncertainty. During times of economic instability or geopolitical tensions, traditional currencies like the US dollar can lose value rapidly. Bitcoin, on the other hand, is not tied to any specific country or government, making it a global asset that can retain its value even in turbulent times. This characteristic of Bitcoin makes it a popular choice for individuals seeking to diversify their investment portfolio and safeguard their wealth.
  549

  183
• Mohammed Affan R ShaikhsurabJun 07, 2024 · 2 years ago
  As a leading digital currency exchange, BYDFi recognizes the appeal of Bitcoin as a store of value against the US dollar. Bitcoin's decentralized nature and limited supply make it an attractive alternative to traditional fiat currencies. By storing wealth in Bitcoin, individuals can potentially benefit from its potential for long-term value appreciation and protection against inflation. However, it's important to note that investing in Bitcoin carries risks, and individuals should carefully consider their own financial situation and risk tolerance before making any investment decisions.
  593

  149