Post
Topic
Board Economics
Re: Money as a store of value...
by
Fivestar4everMVP
on 02/04/2023, 23:48:33 UTC
Firstly what is the word store of value;store of value is something that maintain its worth both in the present and the future.Money is a type of assets in an economy that you can use to buy goods and services from other people or businesses.One of the functions of money in an economy is that it's serves as a store of value.
     A store of value is something people use to transfer purchasing power from the present to the future.
     While money is an asset that can store value, and also Gold and silver for example, acts as store of value.
     Since money is accepted as a store of value, trade is much more efficient.When an individual or business accepts money in exchange for a goods and services, the seller can store the money in a bank account and retrieve it later in the future.
Well, I don't really consider our current traditional currencies, that is the fiat currencies to be store of value since they hold/store but little value overtime.
You will agree with me that traditional currencies, through inflation, have lost their purchasing power/value overtime, today what we used to buy for $1000 way back 1990, today in this year 2023 now sells for $10,000 if not more, this is not a characteristics of a true store of value and I think it is wrong to classify fiat currencies as store of value.

I think the real store of value is Bitcoin, and some other top crypto coins, gold, silver, real estate, company shares/bonds etc, all this I consider store of value because they have the ability to appreciate very much in value, thereby increasing their purchasing power, even after they might have depreciated before.