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Bitcoin Store of Value 2025: How Is It Still the Standard?

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Bitcoin store of value 2025

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Table of Contents

When you stop and think about it, scarcity—or the ability to measure how much of something is lacking—is the single most important economic principle that defines the value of everything in our day-to-day lives.

Think about it. When you dumb down every economic principle there is out there, the single underlying factor to determine the value of something is: how available is this something and how much do people want it?

A 1932 classical guitar made by renowned luthier Antonio Torres and an average regular guitar produced in bulk nowadays all achieve the same purpose, which is to “be’ a guitar. Yeah, the labor process in these two guitars is different, but is it enough to make one cost $300,00 and one close to a million bucks? Nope.

But here’s the catch. Antonio Torres only created a limited amount of guitars, and out of all of those, a very small percentage has survived the 100 years that have passed.

This makes these guitars incredibly scarce, and given the demand that there is to own a guitar by the most important luthier of our lifetime, the combination of these factors can explain why these guitars can cost up to $1,000,000 each.

But why are we talking about guitars if this article is supposed to be about Bitcoin? Well, the example above represents how scarcity can drive the value of something.

Much like Torres’ guitars, Bitcoin is finite. The scarcity inherent of cryptocurrency makes it a reliable investment for those looking to safeguard their funds and protect against inflation.

Why Bitcoin is a Store of Value?

In the investment world, we have assets known as “stores of value”, and they’re also determined by their scarcity and demand. Most notably, gold has been the go-to store of value of the last century, given its limited nature and incredible demand as a precious metal, as well as its excellent conductive properties.

The creation of Bitcoin by our old pal Satoshi completely changed the game. Bitcoin as an asset is extremely scarce and has the most demand out of all cryptocurrencies. For this reason, BTC is often considered to be the “digital gold”, fitting all the checkmarks to serve as a store of value akin to the precious metal.

Bitcoin as Digital Gold

The total amount of Bitcoin that will ever be available in the world is set in stone. 21 million Bitcoins, that’s it. Meanwhile, the total amount of gold out there is approximately 216,265 tonnes. 

But here is the catch: while gold is most definitely a finite resource, we are not at the point of having discovered every single gold mine in the world. Let’s say a new giant gold mine is found in Brazil, estimated to have 20,000 tonnes of gold. What will happen to the value of gold per ounce when this happens? Yep, it will decrease. 

This gives Bitcoin a competitive edge against gold over the years, as there is not a single chance BTC will become less scarce. While the available supply is still at around 19 million BTC, mining will continue to regulate the availability of the currency—managing Bitcoin’s scarcity and volume—ensuring that its value is preserved and potentially enhanced as demand increases.

Bitcoin Value Proposition 2025

While Bitcoin continues to remain as scarce, with mining regulating the available supply, the demand for the cryptocurrency has certainly changed over the years. 

If ten years ago BTC was seen as a sideline currency that shouldn’t be taken seriously, the state of Bitcoin investments today is completely different. Crypto has never been more popular, over 70% of adult Americans own or have owned cryptocurrencies.

Bitcoin is also in its early steps toward becoming a store of value for nations to back their reserves and protect them against inflation. Countries like China own 190,000 BTC and the U.S. not only owns 215,000 BTC but is also on its way to creating a de-facto Strategic Bitcoin Reserve.

Bitcoin vs Traditional Assets

The biggest thing going for Bitcoin is the fact that it is decentralized, meaning the market operates independently from any central authority. Unlike stocks, Bitcoin investments operate 24 hours a day, every day, making it easier for investors to buy and sell coins whenever they please.

In comparison to real estate, Bitcoin is immediately liquid. For example, you may own a $5 million property, but converting that asset to cash requires finding a buyer. In Bitcoin’s case, there is always someone willing to buy and sell at any time, allowing investments to operate seamlessly from BTC to cash.

Bitcoin Long-Term Investment Benefits

The idea behind having a long-investment Bitcoin plan relates back to the scarcity-driven growth we previously spoke about. Its finite supply supports its value over time, as long as the demand for the currency remains high. 

Also, Bitcoin has proven in times of economic uncertainty like the COVID years that it could serve as a hedge against inflation. At a time when the entire globe was facing excruciating inflationary pressures, the world’s largest crypto served a key role as a store of value, alongside gold.

This event marked the first time the crypto served that role, and at the time it passed with flying colors. Given that in 2025 the currency is even more popular and easily accessible, Bitcoin as an inflation hedge will most likely become the norm moving forward.

Bitcoin Dominance in 2025

In 2025, Bitcoin continues to hold a dominant position in the cryptocurrency market, asserting its influence and shaping the landscape for digital assets. With a market dominance of around 61.04% and consistently above 50% since October 2023, Bitcoin remains the most valuable and widely recognized cryptocurrency.

Why is it relevant, you may ask? Well, Bitcoin’s dominance is crucial because it essentially dictates the value of other cryptocurrencies. As the first and most established cryptocurrency, Bitcoin acts as a benchmark for the entire market. When Bitcoin’s price rises or falls, it often triggers similar movements across other digital assets.

For this reason, Bitcoin has been acting as a “safe haven” for investors in the cryptocurrency market for a very long time.

Bitcoin Fundamentals for Investors

Cryptocurrency investors may benefit from allocating part of their unused funds to Bitcoin. As the most established digital asset, BTC is seen as less volatile than altcoins, making it a safer bet for allocating funds. 

Also, not to beat a dead horse but this whole article is about Bitcoin as a store of value—what did you expect? The thing is, Bitcoin’s unique attributes, such as its fixed supply, decentralization, and growing mainstream acceptance, make it a compelling option for long-term holding.

Why Bitcoin Retains Value

  • Widespread adoption: The most owned, and sought-after cryptocurrency.
  • Scarcity-driven: Bitcoin’s fixed supply makes it behave as a finite good, putting the old supply x demand rule to work and potentially benefitting its value growth over time.
  • Global acceptance: Nations all around the world are adding Bitcoin to their reserves, giving the asset a boost in credibility and adoption.

Bitcoin vs Altcoins Store of Value

A couple of years ago Shiba Inu gained recognition as a memecoin when Ethereum co-founder Vitalik Buterin burned almost half of the available SHIB tokens in the market. This event, paired with the notoriety of having the market’s most famous entity (excluding Satoshi), burning tokens, caused SHIB to gain yields upwards of tens of thousands.

Since then, Shiba Inu as a project has been known for developing features and applications that would help burn more SHIB, contributing to making the currency more scarce. 

This happens because the memecoin has a supply of over 589 trillion tokens. Not to say that a supply this large is inherently bad as it is useful for developing applications that require a high volume of transactions and micro-transactions. 

When it comes to storing value, Bitcoin holds an edge against almost all cryptocurrencies due to its limited availability and constant scarcity-driven pressure on demand.

Importance of Bitcoin 2025

Bitcoin adoption as a digital store of value is likely to take place from 2025 forward. The cementing of the currency being used as a hedge against inflation by nations, companies, and the people represents another boost to its credibility and utility in the world. 

This year we are witnessing a growing number of institutional investors, hedge funds, and major corporations adding Bitcoin to their reserves. This is yet another sign that Bitcoin has evolved into a mature investment vehicle.

Wrapping Things Up: Future of Bitcoin Investments

As we look to the future of Bitcoin investments, it’s clear that the cryptocurrency is here to stay. Bitcoin’s unique attributes—its scarcity, decentralization, and growing mainstream acceptance—position it as a reliable store of value. From institutional investors to everyday individuals, the adoption of Bitcoin as a digital store of value is gaining momentum, solidifying its place in the financial landscape.

The importance of Bitcoin in 2025 and beyond cannot be overstated. With nations, companies, and people all recognizing its potential as a hedge against inflation, Bitcoin’s credibility and utility continue to grow. This year has seen a surge in institutional adoption, and the creation of strategic Bitcoin reserves by countries signals a new era for this digital asset.

Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more

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Giovane

My name is Giovane, and I've been covering the world of cryptocurrencies for nearly half a decade. I have a deep passion for understanding how crypto is shaping our future and enjoy diving into the news that highlights these changes. I'm particularly interested in how Bitcoin, Altcoins, and blockchain technology impact economies and societies worldwide.

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