Chapter 6:
Bitcoin's Impact on Finance
Section 1: Bitcoin as a Store of Value and Digital Gold
Bitcoin has gained recognition as a potential store of value and a digital equivalent to gold. Here's a closer look at how Bitcoin functions in these roles:
- Store of Value: Bitcoin's limited supply and decentralized nature make it an attractive store of value for individuals seeking an alternative to traditional fiat currencies. Some proponents argue that Bitcoin's scarcity and deflationary properties make it a hedge against inflation.
- Digital Gold: Bitcoin's properties, such as divisibility, portability, durability, and fungibility, resemble those of gold. Bitcoin's fixed supply, combined with its decentralized nature and inherent digital characteristics, position it as a potential digital equivalent to gold.
