BTC value has recorded a 9% loss over the past day. However, Jeremy Allaire says that the digital currency will come out as the winner in the long run. The chief executive of Circle stated yesterday on the Reddit AMA that BTC might transform into a more substantial store of value, instead of merely being a protocol for payments and settlements. He forecast that there are going to be millions of various digital currencies in the future and every one of them will have a specific function. Fiat currency assets and stablecoins, for example, will be utilized for transactions while commodity assets will serve as a fuel for using protocols, platforms, and apps.
According to various critics, BTC would become anything except the store of value in the event that it does not gain stability. Ex-chief of the Federal Reserve, Janet Yellen, stated in 2018 that the currency was not an effective method for transaction processing. Allianz, a financial service company, has also disregarded BTC in its last year’s report, stating that the digital currency offers no intrinsic value as opposed to such assets as sovereign bonds, equities and paper money.
Nevertheless, advocates use their counterarguments, claiming that even the USD does not have an intrinsic value, and the only reason behind people trusting this fiat currency is that they are believers in their government. This also helps to point out the nostalgic sentiment around the Gold standard, when the government papers possessed their supply measured by the amount of the gold they owned.
KPMG, one of the Big Four audit companies also stated that BTC might attain a store of value asset, in the event that organizations begin supporting it in large scale. However, until then, the digital currency will most probably stay speculative given its wider exposure to unstable retail marketplaces.