The concept of store of value (SoV) has been grossly misunderstood. Investors and enthusiasts have been led to believe that SoV is a standalone feature. However, this couldn’t be further from the truth.
The idea that limited supply or fixed emission alone can create value is a myth. It’s a myth perpetuated by those who seek to create a false sense of scarcity, in an attempt to drive up prices and reap the benefits. The truth is, there is no shortage of fixed supply tokens, and quadrillions are created ever day. Without utility, a SoV is nothing more than a Ponzi.
The Gold Standard
Gold, often cited as the ultimate store of value, is a prime example of an asset that has been misunderstood. While it’s true that gold has been used as a store of value for centuries, it’s not just because of its limited supply, pretty appearance, or mere scarcity. Gold has a multitude of utility applications that underpin its worth, including its antimicrobial properties, conductivity, anti-corrosion properties, technological applications, and even radiation shielding.
In other words, gold is not just a pretty metal that we’ve assigned value to; it has real-world uses that make it valuable, and as technology advances, the utility value of gold continues to increase. The continuous emergence of utility and technological applications has enabled gold to maintain its value over time, despite fluctuations in supply and demand.
The Bitcoin Enigma
Bitcoin, the world’s first decentralized digital currency, is another asset that has been misunderstood. While many view Bitcoin as simply a store of value, it’s so much more than that. Bitcoin is a decentralized data settlement layer, capable of storing data – immutably and securely. It’s a platform that has never been hacked, despite being open-source and having immense liquid value.
Bitcoin’s utility values are numerous, especially its ability to store zk-proofs. It’s a platform that’s accessible from anywhere, by anyone with an internet connection. And, just like gold, new technological utility applications for the Bitcoin blockchain continue to emerge and increase its value.
The Zenon Revolution
Zenon Network is mirroring the Bitcoin model and is designed to work in symbiosis to improve and scale Bitcoin. By building upon the foundation laid by Bitcoin, and incorporating cutting edge smartDAG technology, Zenon aims to interoperate with Bitcoin to create a more robust and scalable decentralized system with enhanced functionality and quantum resistant security.
With Zenon, users will be able to enjoy feeless transfers, faster transaction times, Turing completeness, perpetual dApps, and improved decentralization. Zenon is designed to work in harmony with Bitcoin, and it’s this complimentary approach that will ultimately lead to a civilization-grade decentralized information system.
Conclusion
The next time you see the mention of “digital gold”, remember that gold and Bitcoin both have inherent utility values that underpin their worth, and it’s their utilities that have enabled them to maintain their value over time. Store-of-value is a secondary benefit.
Bitcoin + Zenon Network = the internet of everything.
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