Store of value
One of the three classic functions of money: it should keep its value over time so that you can save today and spend later. Whether bitcoin fulfils this role is disputed.
AlsoSoVvalue storestore of wealthstore-of-value asset
According to the European Central Bank, money has three functions: medium of exchange, unit of account and store of value. The last means you can put money aside and it keeps its value.[1] For that, it has to be durable, hard to multiply and exchangeable at any time. Traditionally, gold fulfils this role; cash only to a limited extent, because inflationGlossaryInflationA general rise in prices that makes money lose purchasing power. The ECB aims for 2% a year over the medium term for the euro area.On the learning path: Stage 2 · Step 1 – Money, inflation & trust →In the glossary → slowly eats away at its purchasing power.
Is bitcoin a store of value?
+What supporters say
- The supply is capped at just under 21 million BTC, and issuance follows a fixed schedule.
- Nobody can create new bitcoin at will or change the rules on their own.
- Bitcoin can be held in self-custody and taken across borders.
−What critics say
- The price fluctuates strongly; declines of more than 50% have happened several times.
- Bitcoin has no intrinsic value and generates no income.
- Many small investors have lost money with bitcoin.
The Bank for International Settlements backs up the last point: from August 2015 to December 2022, the majority of crypto app users in almost all the countries studied lost money on their bitcoin.[2]
What this means for you
Within months, the price can halve; over several years, it has so far mostly ended higher than where it started – but that is no guarantee for the future.[3] As a store of value, bitcoin is therefore only an option with a long investment horizon and only for money you won’t need in the meantime. Bitcoin isn’t suitable for your emergency fund: Financial foundations first. The full picture: Digital scarcity.
Related terms
These terms are closely connected.
- This termStore of value
- InflationA general rise in prices that makes money lose purchasing power. The ECB aims for 2% a year over the medium term for the euro area.
- Fiat moneyMoney that isn’t backed by gold or other physical assets but rests on government decree and trust – such as the euro and the US dollar. Most of it is created by commercial banks, for example through loans.
- VolatilityA measure of how strongly a price fluctuates, usually given as annualised standard deviation in per cent. Bitcoin fluctuates much more than a broad stock index or gold – up and down.
- 21 million (Bitcoin’s supply cap)Under the network’s rules, there will never be more than just under 21 million bitcoin. The cap follows from the issuance schedule: new bitcoin per block halve every 210,000 blocks until none are created, around 2140.
- Stock-to-flow (S2F)A measure of scarcity: the existing stock divided by annual new production. A 2019 price model based on it became very popular, but was far off the mark and is no use for forecasts.
Explained in depth
These articles go into more detail:
- Deep dive · Stage 2Digital scarcityWhy Bitcoin is considered scarce, how it compares with gold and why scarcity alone delivers neither a safe store of value nor a price forecast.
- Stage 2 · Step 3Criticism & risksPrice crashes, crime, quantum computers, bans, concentration and criticism from the ECB and Bundesbank: the main objections to Bitcoin, with data and context.
- Deep dive · Stage 3Saving & preserving valuePreserving purchasing power with Bitcoin? Which money it may suit, what historical savings plans show and why emergency funds and fixed-date goals don’t belong in it.
More from „Money & economics“
Sources3 sources · 3 publishers
The superscript numbers in the text refer to these sources.
- What is money? – European Central Bank (accessed 28/09/2026)
- Crypto shocks and retail losses (BIS Bulletin No 69) – Bank for International Settlements (BIS), 20.02.2023 (accessed 28/09/2026)
- Historical Bitcoin prices (API) – mempool.space (accessed 28/09/2026)
This entry is for education only and is not investment, tax or legal advice.