The Economics of Bitcoin: Store of Value

The video discusses the similarities and differences between gold and Bitcoin as store of value assets. Both are limited in supply and secure, but are speculative investments. Their value is largely based on collective agreement rather than intrinsic utility. Gold has a long history as a recognized asset, while Bitcoin is relatively new. Market events like Brexit and trade wars have influenced their prices similarly. Bitcoin needs to prove its value over a longer period to be taken seriously as a store of value.

What is a common characteristic of both gold and Bitcoin as mentioned in the video?

• They both have values determined by profits.

• They are both unlimited in supply.

• They are both secure ways to store wealth.

• They are both part of traditional banking systems.

Why are gold and Bitcoin considered speculative investments?

• Because their values are determined by interest payments.

• Because they are both used as homes.

• Because their values are mostly based on people's agreement.

• Because they are both used in industrial applications.

What was the original intended use for both gold and Bitcoin?

• As a speculative investment.

• As a traditional banking asset.

• As a form of jewelry.

• As a means of exchange.

How long has gold been recognized as an asset compared to Bitcoin?

• Gold has been recognized for over 3000 years.

• Gold has been recognized for over 2000 years.

• Gold has been recognized for over 1000 years.

• Gold has been recognized for over 500 years.

What does Bitcoin need to do to be taken seriously as a store of value?

• Be used more in industrial applications.

• Become part of traditional banking systems.

• Prove itself over a longer timeframe.

• Increase its supply.