Post
Topic
Board Economics
Re: Money as a store of value...
by
Mpamaegbu
on 03/04/2023, 06:10:46 UTC
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.
This is why you shouldn't write on sensitive stuff like this from the top of your head without making your research. It's really absurd to classify money (fiat) as a store of value. It's obviously not. Anything that depreciates in the presence of inflation can't be quantified as such. We can say Gold is. Bitcoin is. But not fiat. For instance, a few years ago in my country N100 was $1 in 2008. Today, N745 exchanges for $1. Inflation has beaten the hell out of the local currency with virtually no corresponding value to show for the difference. N100 in 2008 had a better purchasing power than the current N745 of today. Every Nigerian know this.