Post
Topic
Board Economics
Re: Money as a store of value...
by
Gyfts
on 06/04/2023, 22:27:33 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.

What's the point that you're making? That paper money has value?

I'm sure we could look at the global economy over the last hundreds of years to recognize that paper currency has value. It's not that anyone is challenging that. You may mention where that value comes from, though. The value of any currency originates from the government. The paper within itself is inherently worthless. In fact, you could have millions of units of currency and have the net worth of zero if you don't find someone that holds the currency attributable to the same value you do. Gold and silver at least have some inherent value so they're not comparable but they're often lumped together with currency.