Store of values are strange beasts when you really look at them, often defying standard economic labels. People tend to treat Bitcoin less like a functional currency and more like a permanent ornament because you are essentially expected to hold onto it for life. As explored in The value of non-tangible things, this behavior aligns more with the display of precious assets than with transactional money. This is why some researchers argue that Should We Compare Bitcoin to Gold? Lessons From the Last Financial Crisis is a necessary starting point for understanding its true utility.
The core misunderstanding arises when people insist on categorizing this asset strictly as a currency, despite the fact that you can’t even buy anything with it in a practical sense. It fails as a medium of exchange, yet it thrives as a social artifact. This dynamic is closely related to The Subtleties of Social Signaling: Beyond the Price Tag, where the value is derived entirely from what others are willing to pay for it. Experts have pointed out this tension, noting Why Bitcoin Is Increasingly Being Treated Like Digital Gold as a way to bridge this gap in perception.
Ultimately, value is simply a matter of consensus—what we collectively agree something is worth. When we strip away the technical jargon, it becomes clear that Bitcoin functions as an alternative store of value rather than a tool for daily commerce. This perspective shifts how we view its long-term purpose, forcing us to consider if we are dealing with a new form of digital heirloom. Much like the ideas found in The 10x Price Thought Experiment: Elevating Value and Brand, the price remains tied to our shared belief in its scarcity.
By viewing it as jewelry, we move past the frustration of its failure as a currency and recognize it for what it is. There are valid criticisms of this transition, specifically regarding The Case Against Bitcoin as Sound Money, which highlights the risks of relying on consensus alone. Still, as long as people assign worth based on their willingness to hold these digital tokens indefinitely, the comparison to fine jewelry remains the most accurate way to frame its place in the world.