Volatility doesn't inherently change whether something is a store of value. E.g. last March stocks plunged ~30% overnight and bounced back quickly. Oil prices are also highly volatile.
I think you're confusing short term volatility with long term value. E.g. cryptocurrency is highly volatile in the short term. If your time horizon is dinner time, it's too volatile to be an effective store of value. If your tine horizon is measured in years, then fiat invariably goes to zero while crypto climbs.
Volatility doesn't inherently change whether something is a store of value. E.g. last March stocks plunged ~30% overnight and bounced back quickly. Oil prices are also highly volatile.
I think you're confusing short term volatility with long term value. E.g. cryptocurrency is highly volatile in the short term. If your time horizon is dinner time, it's too volatile to be an effective store of value. If your tine horizon is measured in years, then fiat invariably goes to zero while crypto climbs.
price vs value vs store of value. if i threw a bitcoin, 100 fiat federal reserve notes and an ounce of gold into the ocean, which would have value to the organism that discovers them in 100 years? 1000 years?
price vs value vs store of value. if i threw a bitcoin, 100 fiat federal reserve notes and an ounce of gold into the ocean, which would have value to the organism that discovers them in 100 years? 1000 years?
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