Because store of value must be backed by something, and bitcoin is backed by nothing, so it can't ever become one. It's a meme designed to entice people to buy - the narrative thing. It's a negative sum game, so people who mistakenly think it has value continue to lose wealth in aggregate. This can last for years but not indefinitely.
For eth, it's possible, because it's going to generate income, but it's what I meant by the "premium for being the only big yield asset that doesn't rely on law to enforce property rights" bit. In the short run it can go much higher, but I doubt the ability to sustain >100x PE ratios over decades.
The likely reply to this is "gold", so let me preempt it. Gold is sustained mostly by jewelry demand (cultural reasons mostly in Asia) and industrial demand. Speculation pumps it on top of that, but without the non-speculative demand gold would collapse during market crashes, killing future speculative demand too. Even with that it appears to be going out of fashion among speculators - gold isn't money for several decades now and the 'gold is money' meme is finally losing power. That's after literally thousands of years when gold was used as money, showing how weak even the strongest meme 'backing' is.
For eth, it's possible, because it's going to generate income, but it's what I meant by the "premium for being the only big yield asset that doesn't rely on law to enforce property rights" bit. In the short run it can go much higher, but I doubt the ability to sustain >100x PE ratios over decades.
The likely reply to this is "gold", so let me preempt it. Gold is sustained mostly by jewelry demand (cultural reasons mostly in Asia) and industrial demand. Speculation pumps it on top of that, but without the non-speculative demand gold would collapse during market crashes, killing future speculative demand too. Even with that it appears to be going out of fashion among speculators - gold isn't money for several decades now and the 'gold is money' meme is finally losing power. That's after literally thousands of years when gold was used as money, showing how weak even the strongest meme 'backing' is.
https://goldbroker.com/media/image/cms/media/images/global-g...