Topic: Hi Excuse me Are currencies a "store of value - page 8. (Read 1806 times)
It is a store of value but it doesn't mean store of value is the primary function of money. there are many things that store value more effectively than money for example houses. It is that in order for money to function in it's primary capacity, which is to provide the market with liquidity, it must also store value, otherwise no one would want to hold it and therefore accept it as a medium of exchange. Money gets it's value from the market within which it is used as a medium of exchange.
Dollar did lose its value and it shows that it would have been a bad store of value.
I think that depends on how long a time period you're talking about. The USD isn't a horrible store of value over the course of maybe a year, but you wouldn't want to hold dollars without earning interest on them, because obviously inflation would eat away at the value. But yes, fiat currency is a store of value even if it's not an ideal one. I agree with your assessment of gold & silver which are both traditionally considered better stores of value than fiat. Even with price fluctuations they tend to hold up well over time (though not if you bought either one in, say, 2011).
People tend to ask this question a lot about cryptocurrencies, and I tend to think they aren't good places to store value--at all. You might make a good profit or you might lose money, but what you won't get is stability. Gold, silver, and even fiat currencies like the USD can provide that more so than something like bitcoin. If you need a safe-haven asset, the worst thing you could turn to for that is bitcoin, and certainly not any altcoin.
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
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
Currencies were a store of value earlier when the world economy was following Gold standard! With the abolishment of Gold standard, currencies are not anymore a store of value. It can be better described as a promissory note where the issuing authority takes care of the value and it is now backed by the debt papers! No wonder why it has started loosing its purchasing power!
Well, dollar lost its value because of the over printing done by the banks. They did it to stimulate the growth of the economy they said, but it was over done. It has far exceeded the purpose of stimulation which resulted in the global debt of the world reaching an astronomic amount. This was why a lot of analysts have released their ideas that gold/silver is increasing in importance right now, and even banks have ideas of hoarding gold and silver so in case of an economic crash, they could fall back to it.
The USA is targetting inflation of 2% per annum. That means by definition the currency loses purchasing power of 2% per annum. Compounded this means severe loss of value over time.
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, dollar lost its value because of the over printing done by the banks. They did it to stimulate the growth of the economy they said, but it was over done. It has far exceeded the purpose of stimulation which resulted in the global debt of the world reaching an astronomic amount. This was why a lot of analysts have released their ideas that gold/silver is increasing in importance right now, and even banks have ideas of hoarding gold and silver so in case of an economic crash, they could fall back to it.
the government decides the value of currencies which is why its not volatile as it is. the government also decides its volatility by not or printing more of it. now that we know 90% of its value were lost, what was lost in BTC when its growing exponentially over the years of existence? due to it people are already considering BTC as investment not even a currency. the adoption had helped it grow.
Dollar did lose its value and it shows that it would have been a bad store of value.
Now the good thing about gold/silver is that they are tradeable anywhere in the world and since they are noble metals gold>silver, they would not get stains and remain pure for long periods making it a good source of gifting to the next generation. It is thus inheritable.
Added to this and leaving out the "loss of purity" is bitcoin, making it more advantageous than gold for store of value. But using bitcoin and storing it has it own problems. You need to be somewhat tech oriented and know how to keep your keys safe and your devices safe.
Contrary to others, I do no consider any single asset to be "ideal" each of them has their own pros and cons, so choose what you feel is good. Remember that storing your assets in different forms is also a good option, but will carry more workload.
Now the good thing about gold/silver is that they are tradeable anywhere in the world and since they are noble metals gold>silver, they would not get stains and remain pure for long periods making it a good source of gifting to the next generation. It is thus inheritable.
Added to this and leaving out the "loss of purity" is bitcoin, making it more advantageous than gold for store of value. But using bitcoin and storing it has it own problems. You need to be somewhat tech oriented and know how to keep your keys safe and your devices safe.
Contrary to others, I do no consider any single asset to be "ideal" each of them has their own pros and cons, so choose what you feel is good. Remember that storing your assets in different forms is also a good option, but will carry more workload.
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
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
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