Cryptocurrency is a digital or virtual token that uses cryptography to secure its transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.
One of the key benefits of cryptocurrency is its potential as a store of value. A store of value is an asset that can be used to store wealth over time. Cryptocurrencies have a number of characteristics that make them well-suited for this purpose, including:
Scarcity: Bitcoin, the most well-known cryptocurrency, has a fixed supply of 21 million coins. This scarcity gives Bitcoin value, as it cannot be inflated by governments or central banks.
Durability: Cryptocurrencies are digital assets that cannot be lost or stolen without the owner’s private key. They are also resistant to counterfeiting.
Portability: Cryptocurrencies can be easily and cheaply transferred anywhere in the world.
In addition to these characteristics, cryptocurrencies are also becoming increasingly accepted by businesses and governments. This growing acceptance makes cryptocurrencies more attractive as a store of value, as they can be more easily used to purchase goods and services.
As mentioned above, Bitcoin has a fixed supply of 21 million coins. This means that the total supply of Bitcoin will never increase, which helps to preserve its value. In contrast, fiat currencies are subject to inflation, which means that their value decreases over time.
Other cryptocurrencies, such as Ethereum and Litecoin, also have limited supplies. However, their supplies are not as fixed as Bitcoin’s, as they can be increased through mining. Nevertheless, the limited supply of cryptocurrencies is a key factor that makes them attractive as a store of value.
Cryptocurrencies are digital assets that cannot be lost or stolen without the owner’s private key. This makes them more durable than physical assets, such as gold and cash.
Cryptocurrencies are also resistant to counterfeiting. This is because they are secured by cryptography, which is a very difficult code to break.
Cryptocurrencies can be easily and cheaply transferred anywhere in the world. This makes them more portable than physical assets, such as gold and cash.
To transfer cryptocurrency, all you need is the recipient’s public address. You can then send the cryptocurrency using a cryptocurrency wallet. The transaction will typically be confirmed within minutes.
4. Growing acceptance
Cryptocurrencies are becoming increasingly accepted by businesses and governments. This growing acceptance makes cryptocurrencies more attractive as a store of value, as they can be more easily used to purchase goods and services.
For example, a number of major retailers, such as Overstock and Microsoft, now accept Bitcoin as payment. And a number of countries, such as El Salvador and the Central African Republic, have adopted Bitcoin as legal tender.
Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. This makes them attractive as a store of value, as they are less likely to be affected by government or financial crises.
For example, if a government collapses or a bank defaults, fiat currency depositors may lose their money. However, cryptocurrency holders are not at risk of losing their money in these situations.
Cryptocurrencies have a number of characteristics that make them well-suited as a store of value, including scarcity, durability, portability, growing acceptance, and decentralization.
As cryptocurrencies become more widely accepted and used, they are likely to become even more attractive as a store of value.
It is important to note that cryptocurrencies are still a relatively new asset class, and their prices can be volatile. This means that they may not be suitable for all investors.
However, for investors who are looking for an alternative to fiat currencies, cryptocurrencies offer a number of potential advantages.
The Top 5 Cryptocurrencies to Store Value
If you are looking for a way to preserve your wealth in the volatile world of cryptocurrencies, you might be interested in crypto assets that can store value over time. These are coins that have a low inflation rate, a high demand, a strong network security, and a stable price relative to fiat currencies or other assets.
In this blog post, we will review the top 5 crypto assets that can store value, based on their market capitalization, popularity, and performance. We will also explain what makes them attractive as a store of value and how you can buy them.
1. Bitcoin (BTC)
Bitcoin is the original and most widely used cryptocurrency in the world. It was created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto. Bitcoin runs on a decentralized network of computers that validate transactions using a proof-of-work algorithm. This means that no central authority can control or manipulate the supply or the price of Bitcoin.
Bitcoin has a limited supply of 21 million coins, which makes it scarce and deflationary. As of September 2023, there are about 19.5 million bitcoins in circulation, and the last bitcoin is expected to be mined around the year 2140. Bitcoin’s inflation rate is currently around 1.8% per year and will gradually decrease until it reaches zero.
Bitcoin is widely regarded as the first and most reliable store of value in the crypto space. It has a high demand from investors, traders, institutions, and even governments. It has also proven to be resilient and adaptable to various challenges, such as technical issues, regulatory pressures, and market crashes.
Bitcoin’s price has increased exponentially since its inception, reaching a record high of over $64,000 in April 2021. As of September 2023, Bitcoin’s price is around $26,000, with a market capitalization of over $500 billion.
You can buy Bitcoin from various platforms, such as exchanges, brokers, ATMs, or peer-to-peer platforms. Some of the most popular platforms to buy Bitcoin are Coinbase, eToro, Binance, and Uphold.
2. Ethereum (ETH)
Ethereum is both a cryptocurrency and a blockchain platform that enables smart contracts and decentralized applications (DApps). It was launched in 2015 by Vitalik Buterin and other co-founders. Ethereum uses a proof-of-work algorithm similar to Bitcoin’s, but it is planning to transition to a more energy-efficient proof-of-stake algorithm called Ethereum 2.0.
Ethereum has an unlimited supply of coins, but it has a predictable inflation rate that is determined by the network’s demand and usage. As of September 2023, there are about 117 million ether in circulation, and the annual inflation rate is around 4.4%.
Ethereum is considered as the second most important store of value in the crypto space, after Bitcoin. It has a high demand from developers, users, and investors who use its platform to create and access various DApps, such as decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, social media, and more.
Ethereum’s price has also increased significantly since its launch, reaching a record high of over $4,000 in May 2021. As of September 2023, Ethereum’s price is around $1,600, with a market capitalization of over $190 billion.
You can buy Ethereum from the same platforms that offer Bitcoin, as well as from some DApps that allow you to swap other tokens for ether.
3. Tether (USDT)
Tether is a stablecoin that is pegged to the value of the U.S. dollar. It was launched in 2014 by Tether Limited, a company that claims to hold reserves of fiat currency or other assets to back up each tether token. Tether runs on several blockchain platforms, such as Bitcoin’s Omni Layer, Ethereum’s ERC-20 standard, Tron’s TRC-20 standard, and more.
Tether has a variable supply of coins that changes according to the demand and the availability of reserves. As of September 2023, there are about 83 billion tether tokens in circulation, with a market capitalization of over $83 billion.
Tether is one of the most popular stablecoins in the crypto market because it offers stability and liquidity for traders and investors who want to hedge against volatility or move funds between different platforms. Tether is also widely used in some countries where access to fiat currency or banking services is limited or restricted.
Tether’s price is designed to stay close to $1 at all times, but it may fluctuate slightly depending on the market conditions and the confidence in its reserves. You can buy Tether from most crypto platforms that support it as well as from Tether’s own platform.
4. Binance Coin (BNB)
Binance Coin is a utility token that powers the Binance ecosystem, which includes the Binance exchange, the Binance Smart Chain, the Binance DEX, and more. It was launched in 2017 by Binance, one of the largest and most popular crypto exchanges in the world. Binance Coin runs on the Binance Smart Chain, a blockchain platform that is compatible with Ethereum’s smart contracts and DApps.
Binance Coin has a limited supply of 200 million coins, but it undergoes a periodic process called “burning”, where Binance uses its profits to buy back and destroy some of the coins, reducing the supply and increasing the value. As of September 2023, there are about 154 million BNB in circulation, and the last coin is expected to be burned by 2032.
Binance Coin is a valuable store of value for users and investors who use the Binance ecosystem. It offers various benefits, such as discounts on trading fees, access to exclusive services and features, governance rights, and more. It also has a high demand from developers and users who use the Binance Smart Chain to create and access various DApps, especially in the DeFi and NFT sectors.
Binance Coin’s price has grown rapidly since its launch, reaching a record high of over $600 in May 2021. As of September 2023, Binance Coin’s price is around $210, with a market capitalization of over $32 billion.
You can buy Binance Coin from Binance’s own platform or from other platforms that support it.
5. Cardano (ADA)
Cardano is a blockchain platform that aims to offer a more scalable, secure, and sustainable alternative to Ethereum. It was launched in 2017 by Charles Hoskinson, one of the co-founders of Ethereum. Cardano uses a proof-of-stake algorithm called Ouroboros, which claims to be more energy-efficient and faster than proof-of-work algorithms.
Cardano has a limited supply of 45 billion coins, of which about 32 billion are currently in circulation. The remaining coins are allocated to a treasury system that funds the development and maintenance of the platform. Cardano’s inflation rate is currently around 2.4% per year and will gradually decrease over time.
Cardano is considered as one of the most promising store of value in the crypto space because of its potential to challenge Ethereum’s dominance in the smart contract and DApp space. It has a high demand from investors who believe in its vision and roadmap, which includes launching smart contracts, DApps, decentralized governance, interoperability, and more.
Cardano’s price has also increased significantly since its launch, reaching a record high of over $3 in September 2021. As of September 2023, Cardano’s price is around $2.5, with a market capitalization of over $80 billion.
You can buy Cardano from various platforms that support it, such as Coinbase, eToro, Binance, and Uphold.