Bitcoin

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 <p>$20,000 worth of Bitcoin (BTC) in 2017 is worth around $24.9k today, which is very close to current price levels. Adjusted for inflation, the value of BTC has somewhat remained the same over the last six years. Hence, its store-of-value property received a little bit of credibility at press time.</p> 
 <p>BTCGandalf, a crypto-centric X account, mentioned that<strong> “Bitcoin is barely above the 2017 market peak.”</strong> However, other X users have pointed out that the value might actually be lower.</p> 
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    <p lang="en" dir="ltr">In inflation adjusted dollars, <a rel="noopener noreferrer nofollow" title="bitcoin" href="https://thebittimes.com/tag/bitcoin.html">bitcoin</a> is barely above the 2017 market peak pic.twitter.com/TwY0vkh7nU</p> 
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    </div> — GANDALF (@BTCGandalf) August 23, 2023 
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 <p><strong>Also Read: Bitcoin: Bond Market Volatility Could Help BTC Rebound</strong></p> 
 <p>Taking into consideration real inflation, SmileyGnome, another BTC-focused user, says that the BTC’s peak in 2017, at $18,500, is now worth $28,500. The figures further demonstrate Bitcoin’s (BTC) capacity to serve as a store of value.</p> 
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    <p lang="en" dir="ltr">This is actually wrong. <br><br>It’s worse than that. It’s $18,500 (BTCs ATH in 2017) is now worth $28,500 today.<br><br>You have to calculate real inflation rate of M2 money supply. https://t.co/gYMh8448tX</p>— SmileyGnome BTC 🏧 (@SmileyGnome) August 24, 2023 
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 <h3 class="wp-block-heading" id="h-is-bitcoin-s-scarcity-decreasing">Is Bitcoin’s scarcity decreasing?</h3> 
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  <img decoding="async" width="1024" height="683" src="https://cdn.thebittimes.com/images/2023/08/25/d803fbad59be5b86cfa302b51e935180.webp" alt="Bitcoin Rangebound Below $29K As Traders Uncertain on Fed’s Rate Path" class="wp-image-107371" srcset="https://cdn.thebittimes.com/images/2023/08/25/d803fbad59be5b86cfa302b51e935180.webp 1024w, https://cdn.thebittimes.com/images/2023/08/25/d803fbad59be5b86cfa302b51e935180.webp 300w, https://cdn.thebittimes.com/images/2023/08/25/d803fbad59be5b86cfa302b51e935180.webp 768w, https://cdn.thebittimes.com/images/2023/08/25/d803fbad59be5b86cfa302b51e935180.webp 380w, https://cdn.thebittimes.com/images/2023/08/25/d803fbad59be5b86cfa302b51e935180.webp 550w, https://cdn.thebittimes.com/images/2023/08/25/d803fbad59be5b86cfa302b51e935180.webp 800w, https://cdn.thebittimes.com/images/2023/08/25/d803fbad59be5b86cfa302b51e935180.webp 1160w, https://cdn.thebittimes.com/images/2023/08/25/d803fbad59be5b86cfa302b51e935180.webp 1260w" sizes="(max-width: 1024px) 100vw, 1024px"> 
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    Source: Forkast News 
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 <p>The Stock-to-Flow ratio (S2F) describes BTC’s scarcity. It is calculated by dividing the total supply by the annual issuance of new coins. A higher S2F ratio indicates higher scarcity, and vice versa.</p> 
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 <p>As per a report by Glassnode, <strong>“We see a relatively lower scarcity rate in modern times.”</strong> This is attributed to lesser investors losing their coins and the market maturing over time. This, according to Glassnode, has resulted in a more mobile coin supply. Moreover, it has led to <strong>“a preference amongst investors trading for fiat-denominated returns.”</strong></p> 
 <p><strong>Also Read: JPMorgan Predicts Limited ‘Crypto Downside’ as Bitcoin Holds $25,000</strong></p> 
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 <p>Glassnode noted that adjusted S2F was initially very high but has diminished relative to nominal S2F.</p> 
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  <img decoding="async" width="1024" height="586" src="https://cdn.thebittimes.com/images/2023/08/25/2350df5610bc377201954471a48f17d4.webp" alt="" class="wp-image-108780" srcset="https://cdn.thebittimes.com/images/2023/08/25/2350df5610bc377201954471a48f17d4.webp 1024w, https://cdn.thebittimes.com/images/2023/08/25/2350df5610bc377201954471a48f17d4.webp 300w, https://cdn.thebittimes.com/images/2023/08/25/2350df5610bc377201954471a48f17d4.webp 768w, https://cdn.thebittimes.com/images/2023/08/25/2350df5610bc377201954471a48f17d4.webp 380w, https://cdn.thebittimes.com/images/2023/08/25/2350df5610bc377201954471a48f17d4.webp 550w, https://cdn.thebittimes.com/images/2023/08/25/2350df5610bc377201954471a48f17d4.webp 800w, https://cdn.thebittimes.com/images/2023/08/25/2350df5610bc377201954471a48f17d4.webp 1160w, https://cdn.thebittimes.com/images/2023/08/25/2350df5610bc377201954471a48f17d4.webp 1514w" sizes="(max-width: 1024px) 100vw, 1024px"> 
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    Source: Glassnode 
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 <p>Despite the adjusted S2F decline, Bitcoin (BTC) continues to be a good store of value. As per a recent report by Pantera Capital, BTC could rise to a high of $148k after its halving event next year. As per the investment firm, BlackRock’s ETF filing, if approved alongside the halving event in 2024, might push BTC to a new all-time high.</p> 
 <p>As seen in the graph above, S2F has gradually increased as BTC’s price has gone up. Going by that notion, the S2F, or scarcity of BTC, might also see an increase.</p> 
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Bitcoin Remains a 'Store of Value' During Inflation Concerns

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