Post
Topic
Board Economics
Re: Higher Inflation Is Here to Stay for Years
by
Vishnu.Reang
on 18/07/2021, 12:47:22 UTC
More people say store of value now than ever before, but my point about that would be the same.  An asset needs to have a reliably predictable and steady value to be a store of value.  Bitcoin I wouldn't say fits due to its extreme volatility.

I slightly disagree. An asset needs to have a value that doesn't go down drastically in the long term to be used as a store of value. If the value goes up in the long-term, then it is not an issue. And I don't think that stability and predictability needs to be there. If that is the case, then even gold can't be termed as a store of value. Because during the 2011-16 period, gold prices went down by 40%. If you talk about US treasury bonds, then in fiat terms the value is stable. But the returns are only around 1.1%-1.2% per year, while the current inflation rate is in the 5%-6% range.