Can Bitcoin Really Be A Store Of Value? What Pension Funds Are...

As pension funds evaluate Bitcoin’s scarcity, resilience and inflation behavior, a core question emerges: Can BTC become a true institutional store of value?

Gold has long met store-of-value standards, while fiat currencies lose purchasing power over time. Bitcoin now meets several of the same store-of-value benchmarks.

With a hard cap of 21 million coins and around-the-clock global trading, Bitcoin offers digital scarcity, durability supported by network security and liquidity that rivals many traditional assets.

Concerns remain, including short-term volatility, inconsistent global regulations, cybersecurity risks, limited historical data and challenges integrating Bitcoin into traditional investment models.

Still, rising inflation, geopolitical tension and weakening confidence in some fiat currencies are prompting pension funds to explore Bitcoin as part of a long-term strategy.

A key question has followed Bitcoin (BTC) since it gained prominence: Can it reliably act as a store of value? The idea has long intrigued individual investors, and now even pension funds are beginning to explore it. They are assessing whether Bitcoin can preserve value over time, potentially alongside or even competing with traditional safe assets such as gold.

This article examines what defines a store-of-value asset and how pension funds are approaching Bitcoin. It compares Bitcoin with established store-of-value assets and explores how crypto exposure for pension funds may expand beyond BTC.

A store-of-value asset maintains its purchasing power over long periods. It typically has four main qualities:

Scarcity: A limited supply that is difficult to expand

Liquidity: The ability to be easily exchanged for goods or other assets.

Source: CoinTelegraph