I'm not questioning the PP theory or the store of value concept. I'm a Bitcoin believer.vincent_c wrote: ↑Mon Aug 23, 2021 12:55 pmThey don't have to, but investors who would have stored value into gold historically may be moving those funds into bitcoin.
The concept behind the PP is a theoretical one, the concept of a store of value is also theoretical, so you just have to go with theory. In 10 years you can backtest and "prove" whether this was correct or not.
What is unclear to me is the relationship between Bitcoin and gold, specifically the assumption that one is eroding the other. As you say, an investor "may" move funds from gold to bitcoin as a store of value play, but it is just not possible to say the degree to which that is happening. Because the universe of bitcoin investors is not limited to gold investors. So to forecast bitcoin's growth in market cap as a transfer of gold's market cap may not be sound. To use your term, the correlation is theoretical at this point and can only be proven through backtest some time in the future.
Personally, I think there is probably some competition between gold and bitcoin going on, but I also believe the majority of bitcoin investment is completely independent of the gold market despite the natural tendency to compare the two assets as non-fiat stores of value and inflation hedges.