According to AMB Crypto reported on April 29, Bitcoin, the world's largest cryptocurrency market capitalization, has exceeded $5,000 and has remained at this price for some time. However, due to a series of negative news from Bitfinex recently, the market value of Bitcoin has indeed been affected. The volatility of the bitcoin market has caused many people to question the value of cryptocurrencies.
Bitcoin's early evangelist Jimmy Song said in a recent talk about the volatility of bitcoin prices that bitcoin is a "value store."
(Source: newsbtc )
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Although many people in the Bitcoin community want bitcoin to replace the status of the French currency, due to the volatility of bitcoin prices, most people will not compare this cryptocurrency with the largest market value to the legal currency. In a recent video broadcast by Jimmy Song, Bitcoin is a means of value storage, just like real estate and stocks. In addition, he also pointed out that Bitcoin, like any other "value-storing asset", has price volatility, but it does not weaken its monetary status.
Jimmy Song compares Bitcoin with real estate and stocks, as well as some traditional methods of storing value assets. While the volatility of these markets is obvious, it does not affect the public's use of these assets for stored value:
We all know that although the value of stocks fluctuates every day, there are certain risks in investing in stocks, but people still choose to invest in this way. Bitcoin works in a similar way to stocks, and Bitcoin, like real estate, has continued to appreciate in the past 10 years.
The bitcoin evangelist also compares bitcoin to the dollar and says that in many countries, people are more willing to hold bitcoin than the dollar. Jimmy Song said that the inflation rate of the general currency is 6-7%, which is a real inflation indicator. The reason people suspect Bitcoin is mainly due to the considerable capital flows in the Bitcoin ecosystem, and the price changes are very similar to those in the financial markets.
However, Jimmy Song did not mention Bitcoin's bull market in the video. In the bull market in 2017, the price of bitcoin soared to $20,000 and then fell to a level slightly above $5,000.