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ClarkLK
@daniewl
Bitcoin's price volatility significantly impacts its role as a store of value. While it’s often compared to digital gold, its sharp price swings—sometimes exceeding 20% in days—undermine the stability expected from a reliable store of value. Investors seeking wealth preservation prioritize predictability, but Bitcoin’s speculative nature, driven by market sentiment, regulatory news, and macroeconomic shifts, introduces high risk. Data shows Bitcoin’s 30-day volatility index often surpasses 50%, far exceeding gold’s typical 10-15%. This volatility can erode confidence for long-term holding, as sudden drops wipe out gains. However, proponents argue that Bitcoin’s finite supply and decentralized nature ensure value retention over time, despite short-term fluctuations. Yet, until volatility stabilizes, its store-of-value narrative faces skepticism, pushing it closer to a speculative asset than a dependable hedge against inflation.
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