Hi Excuse me Are currencies a "store of value - page 5.

Getmon

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Quote from: romiio00 on December 02, 2019, 01:04:37 AM

Hi i'm monolicaคาสิโน
A quick history of currencies and paper money shows that money began as a deposit of a certain value of gold/silver and then turned into a representation of the promises of those who issue it.
Looking at the US dollar, it has lost more than 90% of its value, making all paper currencies a bad example of a "store of value." "I do not want to mention the scenario that happened in the state of Venezuela or Germany after the war."sagame

Fiat currencies could never be considered store of value because their value is decreasing. If someone will hide a big amount of fiat under the ground to make sure he has something to spend after a decade or so, he will most probably have so little to buy with that same amount by the time he digs it up. The problem with fiat is that it is not valuable in itself unlike gold or even Bitcoin to a certain extent. Fiat is just a piece of paper without value.

cutesgirl

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Quote from: teosanru on December 10, 2019, 03:10:49 PM

Quote from: romiio00 on December 02, 2019, 01:04:37 AM

Hi i'm monolicaคาสิโน
A quick history of currencies and paper money shows that money began as a deposit of a certain value of gold/silver and then turned into a representation of the promises of those who issue it.
Looking at the US dollar, it has lost more than 90% of its value, making all paper currencies a bad example of a "store of value." "I do not want to mention the scenario that happened in the state of Venezuela or Germany after the war."sagame

Actually you are right the traditional money is not at all a store of value because the value that it stores doesn't remains consistent but actually what the makers meant by "store of value" was that it would retain it's value in absolute terms not in terms of purchasing power parity. It means a dollar 1 bill would remain dollar 1 bill in 50 years but it never meant what you could buy with this $1 50 years from today. I think you are a bit mistaken here.

Almost all local currency always have lower value every year although with USD, last year you can buy one pack candies with $1 maybe next year you have added $2 to buy one pack candies, its called with inflation with local currency and bitcoin can increase your saving value and keep profitable if you want make bitcoin as currency digital payment and you can get much profit every time.

btcmurat

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States should invest in bitcoin to keep their economies strong. I'm not surprised. I don't think states that can't get bitcoins are managing their economies right. Bitcoin is a value storage tool. They do not have to officially announce that they have received Bitcoin. But they need to take precautions.

teosanru

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Quote from: romiio00 on December 02, 2019, 01:04:37 AM

Hi i'm monolicaคาสิโน
A quick history of currencies and paper money shows that money began as a deposit of a certain value of gold/silver and then turned into a representation of the promises of those who issue it.
Looking at the US dollar, it has lost more than 90% of its value, making all paper currencies a bad example of a "store of value." "I do not want to mention the scenario that happened in the state of Venezuela or Germany after the war."sagame

Actually you are right the traditional money is not at all a store of value because the value that it stores doesn't remains consistent but actually what the makers meant by "store of value" was that it would retain it's value in absolute terms not in terms of purchasing power parity. It means a dollar 1 bill would remain dollar 1 bill in 50 years but it never meant what you could buy with this $1 50 years from today. I think you are a bit mistaken here.

agentx44

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Quote from: romiio00 on December 02, 2019, 01:04:37 AM

Hi i'm monolicaคาสิโน
A quick history of currencies and paper money shows that money began as a deposit of a certain value of gold/silver and then turned into a representation of the promises of those who issue it.
Looking at the US dollar, it has lost more than 90% of its value, making all paper currencies a bad example of a "store of value." "I do not want to mention the scenario that happened in the state of Venezuela or Germany after the war."sagame

This kind of changes with the store value of a certain currency happens when the country's economy is unstable wherein inflations can be greatly observed since they have no choice but to do that to cope up with their falling economic status. There are instances wherein an event causes the store value to fall down and it can't be avoided with currency like fiat. Cryptocurrency is clearly a decentralized one, its store value doesn't change that much no matter what is happening making it a better currency that what most of the countries in the world have.

NavI_027

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Quote from: Cherylstar86 on December 10, 2019, 09:51:22 AM

In general, any currency should fulfill the function of storing value, another thing is that they perform this function in different ways, depending on many factors. Paper money of states periodically and gradually lose their value due to inevitable inflation.
A decentralized cryptocurrency can hardly be attributed to good value storages due to its very high price volatility. And it seems that she will always have high volatility.

Well, that's normal tho. Inflation of market when it come to centralized and ATH in the world of crypto seems ideal for me already. Some of you might say that word "ideal" is too much, okay fair enough, I say so because in reality it's very rare to see such conditions Grin

. I guess the best thing we could do is to pray for the best and get used to it at the same time — less expectations, less hurt. If you will ask me to choose one, I would probably choose the high volatilty. At least you still got chance of sudden price spike compare to slow but constant inflation.

Cherylstar86

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Quote from: Argoo on December 08, 2019, 12:18:47 PM

In general, any currency should fulfill the function of storing value, another thing is that they perform this function in different ways, depending on many factors. Paper money of states periodically and gradually lose their value due to inevitable inflation.
A decentralized cryptocurrency can hardly be attributed to good value storages due to its very high price volatility. And it seems that she will always have high volatility.

It really make sense to think that each of us want an easy and fast transaction. Basically, we just use fiat as a paper money as a common way of transaction for the different stores or any store establishments around us in our community. Having these crypto currency nowadays it make us comfortable by doing a good way of transaction.

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Quote from: Betwrong on December 08, 2019, 10:35:48 AM

people in countries with unstable economies use USD, EURO, GBP and maybe some other strong currencies exactly as a store of value, never using them in any other way.

It is a fact that people living in unstable economic situations are using stable currencies and they are doing so considering it as a store of value.
The majority of the first world currencies mainly USD is used in many countries to transact if you are a tourist the merchants would certainly like to transact in USD than in their local currency but the only problem is that they charge more for tourist Grin

.

error08

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Every fiat currency that affected by inflation loses its value over time which means do not store your wealth in those fiat currencies if you don't want its value is continuously decreasing. Some solid-form assets and investments are more reliable than fiats such as gold, land, properties, or any business that generates income.
How about bitcoin as a store of value? We know that the value of bitcoin continues to increase rather than lose its value in the long-term, considering the usability and acceptance in the future, bitcoin still has plenty of room to grow bigger, so at this point, bitcoin is a better way to store value than fiat currency.

Argoo

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In general, any currency should fulfill the function of storing value, another thing is that they perform this function in different ways, depending on many factors. Paper money of states periodically and gradually lose their value due to inevitable inflation.
A decentralized cryptocurrency can hardly be attributed to good value storages due to its very high price volatility. And it seems that she will always have high volatility.

Betwrong

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Quote from: mu_enrico on December 04, 2019, 11:16:01 AM

Quote

Currency is a medium of exchange for goods and services.

Source: https://www.investopedia.com/terms/c/currency.asp

Who told you (OP) that currency is a store of value? You should read about "liquidity preference theory"
https://www.investopedia.com/terms/l/liquiditypreference.asp

Tl;dr people hoard cash because of its liquidity, not because of its ability to store value.

And yet millions of people in countries with unstable economies use USD, EURO, GBP and maybe some other strong currencies exactly as a store of value, never using them in any other way. I think we should keep that in mind, never forgetting, at the same time, that those currencies wouldn't be so good as a store of value if they weren't used by most of the people around the world as a medium of exchange for goods and services.

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Quote from: Vishnu.Reang on December 06, 2019, 11:40:09 AM

The only fiat currency which can be used as a store of value in my opinion is the Japanese Yen. During the past 3-4 decades, the purchasing power of JPY has remained more or less constant, although more recently it has started to behave more like the other fiat currencies. Apart from the JPY, almost all the other fiat currencies are vulnerable to inflation, and therefore unsuitable for usage as store of value

Personally, I would go for the Swiss franc

Japan is depending massively on both imports from and exports to US. If the American economy sinks, Japan will follow. The Swiss are the world bankers and have been so since long ago. They definitely know how to run the money. Apart from that, the Swiss franc is one of the most protected (difficult to fake) currencies in the world (with the British pound being the most counterfeited currency among major currencies)

fiulpro

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Hello
It actually depends on which currency you are making this statement on , if it is actually bitcoins because let's be honest they are also a currency contrary to what people might believe.
When you talk about dollar and other things they have some value which is backed up by the banks of the respective country , so yes they can be taken as a backed up value and a store of value but I don't think this stable store of value is any beneficial for the investment purposes , because if you wanna earn from it you need to actually invest a lot.

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Quote from: Mometaskers on December 08, 2019, 02:04:50 AM

Quote from: Linkkoin on December 06, 2019, 11:37:45 AM

Quote from: Mometaskers on December 06, 2019, 10:03:34 AM

Quote from: Linkkoin on December 06, 2019, 04:58:41 AM

This is the reputation of a state giving the value to the paper. The stronger the state (its economy being reliable etc.), the better the reputation its currency has. Remove that reputation and like the currency of Zimbabwe - banknote is worth less than a single leaf of a toilet paper.

Well not only that but the government can just declare your money useless, like what India did to its bills. The government can screw your money in various ways.

Exactly. They can even seize the physically existing store of value assets, like a bag of gems, golden coins or bars of gold. Another big advantage of cryptos, because you can make a cold wallet even from a piece of rock if you know how (and there are many guides on how to do so in existence). Even your own body can become one!

Well, that is one reason to diversify into crypto and also have some saved in a software wallet aside from a hardware wallet, which can be confiscated. Then when you flee you can just access your crypto on a new device. Of course don't save a majority of your asset as crypto, exchanges can get hacked, hardware wallets can fail, the grid can shutdown, etc.

the steps taken are clearly very risky if all your money you buy crypto currency, Bitcoin has gone up 5,475.65% this is too risky,
if you try with some money I think it's okay with that, and indeed bitcoin is an instrument or digital asset, you can invest here

Mometaskers

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Quote from: Linkkoin on December 06, 2019, 11:37:45 AM

Quote from: Mometaskers on December 06, 2019, 10:03:34 AM

Quote from: Linkkoin on December 06, 2019, 04:58:41 AM

This is the reputation of a state giving the value to the paper. The stronger the state (its economy being reliable etc.), the better the reputation its currency has. Remove that reputation and like the currency of Zimbabwe - banknote is worth less than a single leaf of a toilet paper.

Well not only that but the government can just declare your money useless, like what India did to its bills. The government can screw your money in various ways.

Exactly. They can even seize the physically existing store of value assets, like a bag of gems, golden coins or bars of gold. Another big advantage of cryptos, because you can make a cold wallet even from a piece of rock if you know how (and there are many guides on how to do so in existence). Even your own body can become one!

Well, that is one reason to diversify into crypto and also have some saved in a software wallet aside from a hardware wallet, which can be confiscated. Then when you flee you can just access your crypto on a new device. Of course don't save a majority of your asset as crypto, exchanges can get hacked, hardware wallets can fail, the grid can shutdown, etc.

Xxmodded

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Quote from: Linkkoin on December 06, 2019, 11:37:45 AM

Quote from: Mometaskers on December 06, 2019, 10:03:34 AM

Quote from: Linkkoin on December 06, 2019, 04:58:41 AM

This is the reputation of a state giving the value to the paper. The stronger the state (its economy being reliable etc.), the better the reputation its currency has. Remove that reputation and like the currency of Zimbabwe - banknote is worth less than a single leaf of a toilet paper.

Well not only that but the government can just declare your money useless, like what India did to its bills. The government can screw your money in various ways.

Exactly. They can even seize the physically existing store of value assets, like a bag of gems, golden coins or bars of gold. Another big advantage of cryptos, because you can make a cold wallet even from a piece of rock if you know how (and there are many guides on how to do so in existence). Even your own body can become one!

Many feature bitcoin than gold as investment assets and give much profit later, maybe some people look not want to get big risk by investing with gold but hope can get much profit, gold only raise change price about 5% and bitcoin or altcoin investment can do it just few second for raising to %5 but have big risk when price down more than 10% just few minutes.

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Quote from: AniviaBtc on December 07, 2019, 01:50:46 AM

Quote from: panganib999 on December 02, 2019, 01:01:34 PM

Quote from: alyssa85 on December 02, 2019, 05:54:17 AM

The only thing that really keeps it's value is property. Even gold has been known to lose it's vale (see early 1990's).

Well yes. But property isn't generally used to help the economy restore itself, but rather gold. Gold has been known to be one of the steadiest properties that have not seen any huge changes in its price in the recent years. With Fiat currently collapsing literally on us, gold would still be the best choice instead of properties. Sad to say about how America has been printing money though. They know what is the issue but they refuse to address it and is instead preparing for another economic crash like the last time.

Everything loses its values but the real question is "how long will it store its value?". Gold really has a very stable value and the changes in its price is slower than the currencies. Fiat is very unstable that year by year or months by months, it changes its value depending on the economy of one's country.

Gold is the best choice but soon, it will also have the down price, not now but sooner.

If you are trying to look at the history of money from the physical cash, It goes into a digital currency that becomes online money it is the same from the physical money, but it has an advantage like less hassle to pay for your bills, secured and easy to transfer money than in traditional of that it takes a lot of time. Today the use of digital currency is slowly replacing real money because came from the other country. They are now accepting the use of coins to make their land more productive and adapting to technology.many people are trying to invest in the cryptos because they know it gives them a lot of profit, not like in real money.

davinchi

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Anything can be a store of value. You can make use of the US dollar or the UK Euro, lands, gold, silver, etc. Any one of them you want can definitely be a store of value for you. I know people that stores their value with USD. So, the same way you can make use of BTC to store your value, and that's if you're ready to take the risk that are involved.

If you check the growth rate of Bitcoin since it was created there is a huge percentage, and anyone that HODL $100,000 from then till now will have a lot of money even if the price should drop down to $1000 per BTC. So it's up to you what you want to use in storing your value, a lot of people prefer to use stable assets, that way they wouldn't have to take high risk.

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Quote from: panganib999 on December 02, 2019, 01:01:34 PM

Quote from: alyssa85 on December 02, 2019, 05:54:17 AM

The only thing that really keeps it's value is property. Even gold has been known to lose it's vale (see early 1990's).

Well yes. But property isn't generally used to help the economy restore itself, but rather gold. Gold has been known to be one of the steadiest properties that have not seen any huge changes in its price in the recent years. With Fiat currently collapsing literally on us, gold would still be the best choice instead of properties. Sad to say about how America has been printing money though. They know what is the issue but they refuse to address it and is instead preparing for another economic crash like the last time.

Everything loses its values but the real question is "how long will it store its value?". Gold really has a very stable value and the changes in its price is slower than the currencies. Fiat is very unstable that year by year or months by months, it changes its value depending on the economy of one's country.

Gold is the best choice but soon, it will also have the down price, not now but sooner.

Vishnu.Reang

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The only fiat currency which can be used as a store of value in my opinion is the Japanese Yen. During the past 3-4 decades, the purchasing power of JPY has remained more or less constant, although more recently it has started to behave more like the other fiat currencies. Apart from the JPY, almost all the other fiat currencies are vulnerable to inflation, and therefore unsuitable for usage as store of value.

Topic: Hi Excuse me Are currencies a "store of value - page 5. (Read 1846 times)