Post
Topic
Board Economics
Re: Hi Excuse me Are currencies a "store of value
by
Betwrong
on 02/12/2019, 18:44:37 UTC
Hi i'm monolicaคาสิโน
A quick history of currencies and paper money shows that money began as a deposit of a certain value of gold/silver and then turned into a representation of the promises of those who issue it.
Looking at the US dollar, it has lost more than 90% of its value, making all paper currencies a bad example of a "store of value." "I do not want to mention the scenario that happened in the state of Venezuela or Germany after the war."sagame

When you are talking about something losing its value, please specify the time frame, because it looks confusing otherwise. US dollar has lost 95% of its purchasing power since 1799. But, on the other hand, can you name a currency which has performed better than that? Also, with regard to the economy, inflation isn't a bad thing, rather its an intrinsic part of of the economic growth the modern world has been experiencing.

Regarding your question, currencies must be used as a medium of exchange, in the first place. The more people use them as an asset, the worse for the economy.