Post
Topic
Board Economics
Re: Money as a store of value...
by
Inwestour
on 14/05/2023, 12:37:07 UTC
Apart from money losing some value due to inflation on the long run, money could totally turn to be a bad store of value if there is redesign of currency. You might have saved your money locally and have a long journey, after so many years you will discover that there is a change in currency denominations or design and this will render all the money in your possession useless.
I have to also agree with you that bitcoin is not a good store of value because of its volatility, but it can be used as a hedge to inflation.
This situation is far from reality, who leaves their savings and go on a trip for several years? If this is really possible in your case, then just leave these funds in US dollars, their design does not change as often and they are not as highly subject to inflation as most national currencies. And in this case, bitcoin will certainly have an advantage, because in a few years it can not only save your money from inflation, but also can bring good profits.