Post
Topic
Board Economics
Re: Money as a store of value...
by
posi
on 13/05/2023, 13:15:32 UTC
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.

This ability to store value over time is one of the critical functions of money in an economy.
Money surely can serve as a store of value but it is not always going to maintain its worth in the long run, since some currencies lose value when there is an economic crisis within a region, so it will surely do the work of storing the value but it might not be able to maintain that value and your wealth is likely to lose value over time.

I believe assets like gold and silver and cryptocurrencies like Bitcoin can provide better opportunities for transferring buying power from present to future since they will maintain or even increase the value of your money over time.

It can be said that money used to be a reliable store of value, but with increasingly unstable economic development creating a crisis, money is no longer a safe store of value. Money still plays an important role in the commodity exchange system of the worl d economy, but it shouldn't be considered a store of value these days.
I agree with you, metals, real estate, or bitcoin are more suitable than money as a store of value because, over time, they not only maintain the value of our assets but can even profit for us so that we can resist the devaluation of the currency.