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Is Bitcoin’s store of value narrative under threat from CryptoPunks?

is-bitcoin’s-store-of-value-narrative-under-threat-from-cryptopunks?

Bitcoin’s major point of sale over the past few years is that the cryptocurrency is a store of value. However, is this position now under threat from another digital asset?

NFT collector thinks CryptoPunks are a threat to Bitcoin

For as long as possible, Bitcoin has been considered (and is still considered by many) as the ultimate store of value in the cryptocurrency space. It is the first cryptocurrency that was ever developed, it is the most valuable in terms of price and market cap, and it has the highest adoption rate.

In recent years, we have seen numerous corporate entities like Tesla, SpaceX, and several others add Bitcoin to their balance sheet. Ethereum has always been thought to be the major threat to Bitcoin, and many believe it will eventually flip Bitcoin to become the number one cryptocurrency in terms of market cap.

However, Bitcoin might be facing another threat to its throne as the store of value in the cryptocurrency space. According to Danny, a popular cryptocurrency investor, advisor and NFT collector, CryptoPunks are eating away at Bitcoin’s store of value position.

Delisting #8348 at $200M

CryptoPunks are eroding the store of value narrative from Bitcoin. If you think @Visa is the last company to add a CryptoPunk to their balance sheet, think again

This is the beginning of a digital paradigm shift and I’m in possession of the Mona Lisa

— DANNY (@seedphrase) August 23, 2021

CryptoPunks are nonfungible tokens (NFTs) on the Ethereum blockchain, and they are developed by American studio Larva Labs. These digital collectibles have become popular and have gained adoption amongst art lovers globally. Some CryptoPunks have been auctioned by popular auction house Christie’s a few months ago.

Visa’s CryptoPunk acquisition is just the start

Leading payment company Visa spent $150,000 to purchase CryptoPunk #7610. Visa believes that NFTs would play a huge role in the future, and the purchase implies that it believes in CryptoPunks.

Danny is confident that more companies will start holding CryptoPunks on their balance sheet. This would imply that the companies believe CryptoPunks is a store of value. He said he had delisted CryptoPunk #8348, valuing the digital art at $200M.

It might still be early to know if CryptoPunks would dethrone Bitcoin as the ultimate store of value in the cryptocurrency space. However, it is important to keep in mind that the cryptocurrency and blockchain industry is still in its early stages, and so many innovations will appear over the coming years.

What do you think?

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