Summary
TLDR: Bitcoin has become known as digital gold and is seen as a hedge, store-of-value, means of payment, beta trade, bet against fiat, and development platform. However, its main function over the past decade has been to absorb excess liquidity.
Key Points
1. Bitcoin is often described as “digital gold” due to its perceived value as a hedge, store-of-value, means of payment, beta trade, bet against fiat, and development platform.
2. Despite these various descriptions, over the past decade and a half, Bitcoin has primarily excelled at sopping up excess liquidity.
3. There is a mishmash of ideas about Bitcoin because people want it to be everything all at once, but in reality, it has primarily served as a store of value and hedge against traditional currencies.