I am a fan of crypto, donāt get me wrong, but in my thinking for something to be a store of value its has to be at least more stable than the stock market.
btc lost 5x compared to stock market when it last crashed. And now, couple months later climbing to record highs. This is hardly a stable store of value. But I believe one day it might become
This is probably the most interesting question Iāve ever seen posted on this forum.
This could be an expensive time for savers and anyone with a bank account really.
Iām genuinely interested in the outcome to this question.
It will be interesting to see.
Iāve still got a current account that pays a whole 0.6% (down from 1.0% before October). Then the person I live with has a mortgage at base rate +0.15% so is currently paying 0.25% on it
A lot of the high street banks have already suggested an ongoing charge for current accounts may be implemented if rates are dropped further.
Even this is unacceptable given the amount of fees charges we are already open to.
A switch to an investment account to protect savings seems like a good idea in theory, does the fca protect the surplus cash in the account aswell as the investments made though?
If banks do go ahead with this - then it will just mean people migrate over to fixed rate bonds with building societies - 1yr 3yr 5yr etc / crypto / stocks / cash under bed.
I can see why they would want to encourage this agenda though. The more pressure they can put on people to move their money, the more people will spend and thereby more people will pay tax. Big cycle really.
They want all the cash to be spent thatās the idea, if they can force people to buy its the added stimulus the country needs.
Actually, you can. There are different card offers in crypto and inclusive few bank with IBAN and everything.
Bitcoin is right now being mass adopted by big institutional companies and investors.
Donāt want to volatility?
DAI and USDC are just few of the stablecoins options available, that you can easily gain from 3% up to almost 10% interest by just holding them.
Finally itās over, crypto won and now itās slowly starting to replace fiat in some scenarios, but it will still need few years to mass adoption.
I know uninvested cash in an S&S ISA is FSCS protected. Iām not sure on GIAs, though I assume it is too but probably not up to the usual Ā£85k limit.
I think the (currently) inescapable endpoint here is that you canāt pay your taxes in crypto.
Given that government is not going to give up that control, crypto will never phase out cash unless the gov allows it.
I donāt think this will prevent widespread crypto adoption but I donāt see how itās not going to be aggressively regulated.
Agreed. Back in March BTC lost 40% in one day - cannot possible call that a store of value. But I think that volatility comes from the fact BTC and crypto in general is not used en masse yet, once it is much of that volatility should subside.
There is a lot of exaggeration over the doom and gloom of these negative interest rates.
With bank savings they tend to only apply to low value bank accounts, for example negative interest exemption applies if you have a minimum value in the account or minimum value paid in every month, this is probably to offset the cost of maintaining inactive accounts and get people to close them down or pay what is essentially an inactivity fee.
Same as many stocks, even some index, how much S&P500 drops in few weeks?
Store of value is not only about not being volatile.
Didnāt get your point about the taxes 
Simply that taxes are a blocker on full crypto usage. As you will always eventually have to convert crypto to cash to meet a tax obligation. So the rise of crypto will still drag cash with it to some degree.
I think, Iām not a crypto expert. Have some minor holdings though.
Depends, what do you consider BTC as?
If it is alternative to fiat currency, well then during crash it was relatively bad alternative. Dropped your Net worth significantly, while fiat currency grew stronger due to ability to buy more of other assets.
If it is form of diversification, that is different story, but whole crypto discussions are usually fiat vs cryptoā¦
Yes but people arenāt arguing for penny stocks or the S&P to be used as a main form of currency.
If you can wake up one morning and find suddenly you canāt afford payments on your house/car because your ācurrencyā is now worth 40% less than it was the day before - it isnāt a good store of value.
Note: Definitely not doubting the role crypto will play in the next 10-15 years, just saying right now there are significant issues preventing that.
Every robinhood trader this year 
Got your point. Indeed, for many years, fiat will still be necessary in some degree in the crypto world.
Believe me, millions of people are on this for decades in multiple countries, fiat currencies owned by government has zero security for you, we have centuries of history showing that.
Bth, I lived in Brazil on times of 4 digits inflation rate, yes, 4 digits.
But I got your point, and for that DAI and other stablecoins are here to stay.
Store of value 
and donāt forget, our fiat currencies are digitals as any other crypto currency, but not well designed like them 