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Topic: Money as a store of value... (Read 799 times)

legendary
Activity: 1946
Merit: 1100
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May 16, 2023, 01:04:59 PM
Money is widely accepted as a store of value, but is it the best option? I don't think so. Because overtime, with inflation and other things, its value decreases. You have mentioned Gold and Silver. Yes they can be a good option for storing value. Because its value is going to increase slowly but surely. Values are determined based on demand and supply. Gold supply is getting lower and demand is getting higher. So the price is going to go up. That's not the case with Money. The system itself is broken. All they need to do is print more. And when they do just that, the value is going to go low. This is the reason why I think money is never the best option when it comes to store value. I don't know what others think about this. If you think I am wrong at this, be sure to let me know.
Bucks, the king of convenience, ain't flawless, folks. Inflation? Like a sneaky rat, stealing your spending might. And we're left craving a hardier option. Cue the metal heroes, gold and silver, standing tall through centuries!

Cash, it's a flirt with instability. But these shiny metals? They're steadfast. Think of them as turtles in a world of ADHD rabbits. Value takes its sweet time, sure, but it's climbing, believe me! Supply and demand tell a wild story: gold supply? Vanishing. Demand? Doing a crazy salsa!

Tragicomedy alert: our system's a laughable mess. Money, with its printing press band, playing a tune of dropping value. What a joke! More printing, more sinking. It's worse than the Titanic, folks!
hero member
Activity: 1750
Merit: 589
May 16, 2023, 12:56:16 PM
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.
So uhh, what was the point of this post exactly?

I suppose everyone with half a brain to figure out how bitcoin works is a little informed about stores of value and what they are, so I don't see the point of having a post like this really. Like okay I guess thank you for the comprehensive explanation of what store of value is, but what's next? Where's the discussion to be made?
well sadly gold is coming back in the future as a store value that is a thing that's going to happen, even though right now our currency is paper money. but at this time inflation continues, until now for paper currencies to continue to experience inflation it does not happen on purpose but that is what happens to unstable money circulation. I hope that in the future they realize it to also start investing some money in a form that is not easy to experience inflation.
how is that a sad thing? Gold has been the prime standard of store of value in the planet since our ancestors knew how to read and write. I don't see why it's "sad" cause this has been the case for a couple of millennia now. Paper money is nothing but a faith-based economic system with nothing to really back it, especially USD. You mean to say you'd pick that over an asset that has proven and well-established value system?
member
Activity: 499
Merit: 16
May 16, 2023, 10:17:15 AM
You've provided a comprehensive explanation of the concept of a store of value. Money, gold, and silver are examples of assets that can serve as stores of value. By accepting money in exchange for goods and services, individuals and businesses can efficiently transfer purchasing power from the present to the future through bank accounts.
sr. member
Activity: 1008
Merit: 366
May 16, 2023, 05:35:43 AM
Money is widely accepted as a store of value, but is it the best option? I don't think so. Because overtime, with inflation and other things, its value decreases. You have mentioned Gold and Silver. Yes they can be a good option for storing value. Because its value is going to increase slowly but surely. Values are determined based on demand and supply. Gold supply is getting lower and demand is getting higher. So the price is going to go up. That's not the case with Money. The system itself is broken. All they need to do is print more. And when they do just that, the value is going to go low. This is the reason why I think money is never the best option when it comes to store value. I don't know what others think about this. If you think I am wrong at this, be sure to let me know.
hero member
Activity: 2408
Merit: 584
May 15, 2023, 02:09:34 PM
More precisely, basically Fiat money is a storage of value we know about it, but indeed the fiat money cannot maintain its value because the supply is always increasing which makes its value continue to decline, whether its use for saving the crisis or whatever is intended in the goal so that it print money In addition and then circulated, it will make the Fiat currency decrease in value because the supply of money is a lot, while the demand for money is only relatively stagnant that makes a currency decrease in value. Therefore, even though Fiat is a storage of values, but it is not effective in the long run because based on the situation above.

Gold, Bitcoin, Silver and others as a storage of values that are effective now also depending on the market demand, because most people already believe in gold or other noble minerals as a storage of values so that makes it worthy of a storage of value.
That is what it is. Even if it can store your wealth, a currency cannot be trusted for the long run considering there can always be different waves of economic crisis over the course of let's say 10 to 20 years, and when there is an economic crisis, there is inflation with it and we all know what happens with some currencies when there is inflation and more currencies being created in the background.

So it is basically useless to store your wealth in liquid or fiat currencies, instead, one should choose commidities and assets and store their wealth in those, just like Gold and real estate, Bitcoin is also good but has higher risks due to its volatility.
full member
Activity: 672
Merit: 100
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May 14, 2023, 03:45:56 PM
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.

I agree with your opinion that money as a medium of exchange for services and others and gold and silver money can be a store in the past and the future but money? I'm not sure about gold and silver. I agree that it can be a storage device in the future, but I don't think money is because day by day the nominal value of our money continues to decrease because it's called inflation because money is continuously being printed without any valuable backups. Money is only backed up with trust. So if money is said to be storage in the future I don't agree but as an efficient medium of exchange I agree
hero member
Activity: 980
Merit: 947
May 14, 2023, 08:37:07 AM
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.
sr. member
Activity: 1190
Merit: 268
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May 14, 2023, 08:27:35 AM
Gold is like a shield against inflation because it has an inherent value of its own. Besides, demand for gold is not dependent on economic . Apart from specific uses in industry, gold is primarily used for ornamental and investment purposes. While inflation can negatively impact demand for goods and services and ultimately hurt and debt markets, gold's unique supply and demand side makes it relatively immune to the negative effects of inflation. Also can protect investments from any decline in financial purchasing power.
full member
Activity: 649
Merit: 100
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May 14, 2023, 07:52:47 AM
#99
well sadly gold is coming back in the future as a store value that is a thing that's going to happen, even though right now our currency is paper money. but at this time inflation continues, until now for paper currencies to continue to experience inflation it does not happen on purpose but that is what happens to unstable money circulation. I hope that in the future they realize it to also start investing some money in a form that is not easy to experience inflation.
sr. member
Activity: 2106
Merit: 282
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May 14, 2023, 07:41:54 AM
#98
actually it is still less effective but because money becomes a storage value for exchanging goods it also makes it easier for people to carry them. I believe that the existence of paper money now is how they find a solution to exchange goods for the better. it doesn't have to be a barter system anymore. but having money as a medium of exchange makes it more convenient to carry around because it's smaller. but inflation is the main problem.
hero member
Activity: 1036
Merit: 625
BTC, a coin of today and tomorrow.
May 14, 2023, 07:16:31 AM
#97
One of the functions of money in an economy is that it's serves as a store of value.
Yea, money is in no doubt a store of value but it is not a good store of value because it loses its value over the time. Not many people will want to store their value in money rather they would like to use money for exchanges of value rather than to store the value.

     While money is an asset that can store value, and also Gold and silver for example, acts as store of value.
Gold and other valuable assets are good store of value especially gold because it is in appreciation value over the years. Bitcoin can be a good store of value because it is a hedge against inflation unlike fiat money.
Money can indeed be a store of value if it is only to be kept for a short time. but Money cannot be a store of value in the long term. Because inflation continues to undermine the value of the currency itself from year to year.

Money really can't retain its value in the long run. In contrast to Gold, whose actual value has never been affected by inflation. And gold continues to be able to maintain its value over time even for decades or more.

For Bitcoin I prefer to think of it as the best place to invest in this digital age. But for a store of value it is still very risky to do.
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.
sr. member
Activity: 1022
Merit: 252
May 13, 2023, 11:39:25 PM
#96
Money is the main thing that is required for smooth functioning of day to day chores and the basic medium of transaction is money  so yes money is the store of value along with certain things like gold and stuff  .
The frequency with which value of money I'd fluctuating is the reason people are reluctant to save money for future infant they are looking for different new and profitable options to secure their future.
I recognize your point on the need of money for everyday uses and its function as a store of value. It is true that changes in the value of money over time might make it difficult for some people to save money for the future. Some people might be hesitant to hold onto significant sums of cash savings because of the possibility of inflation and changes in the state of the economy devaluing money's ability to buy things.
Even if the value of money may change, it is still crucial to preserve money for the future. There are numerous strategies to save money, invest money, and produce returns over time while reducing the impact of inflation. These can comprise choices like stock investing.
legendary
Activity: 2072
Merit: 1023
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May 13, 2023, 10:59:32 PM
#95
One of the functions of money in an economy is that it's serves as a store of value.
Yea, money is in no doubt a store of value but it is not a good store of value because it loses its value over the time. Not many people will want to store their value in money rather they would like to use money for exchanges of value rather than to store the value.

     While money is an asset that can store value, and also Gold and silver for example, acts as store of value.
Gold and other valuable assets are good store of value especially gold because it is in appreciation value over the years. Bitcoin can be a good store of value because it is a hedge against inflation unlike fiat money.
Money can indeed be a store of value if it is only to be kept for a short time. but Money cannot be a store of value in the long term. Because inflation continues to undermine the value of the currency itself from year to year.

Money really can't retain its value in the long run. In contrast to Gold, whose actual value has never been affected by inflation. And gold continues to be able to maintain its value over time even for decades or more.

For Bitcoin I prefer to think of it as the best place to invest in this digital age. But for a store of value it is still very risky to do.

If compared to be a store of assets, gold will be the number 1 choice because of its stability and safety, whether the world changes or enters the digital world, gold will always be the most reliable physical asset. Bitcoin is too volatile, and its future is uncertain as it is not as widely recognized as gold, so to say it is a safe store of value is not entirely true, I agree with your thinking. A store of value means stability and safety are required, whereas bitcoin is unstable and volatile asset, it is more suitable for investment than as a store of value.
hero member
Activity: 630
Merit: 611
May 13, 2023, 10:30:20 PM
#94
One of the functions of money in an economy is that it's serves as a store of value.
Yea, money is in no doubt a store of value but it is not a good store of value because it loses its value over the time. Not many people will want to store their value in money rather they would like to use money for exchanges of value rather than to store the value.

     While money is an asset that can store value, and also Gold and silver for example, acts as store of value.
Gold and other valuable assets are good store of value especially gold because it is in appreciation value over the years. Bitcoin can be a good store of value because it is a hedge against inflation unlike fiat money.
Money can indeed be a store of value if it is only to be kept for a short time. but Money cannot be a store of value in the long term. Because inflation continues to undermine the value of the currency itself from year to year.

Money really can't retain its value in the long run. In contrast to Gold, whose actual value has never been affected by inflation. And gold continues to be able to maintain its value over time even for decades or more.

For Bitcoin I prefer to think of it as the best place to invest in this digital age. But for a store of value it is still very risky to do.
hero member
Activity: 2576
Merit: 579
May 13, 2023, 06:53:00 PM
#93
Now all countries have used money as a legal means of transaction, and money has indeed been relied on as a stable store of value, and now everything we need must use money as a means of payment, but in the past there was barter between one item and another and this was already common among the public because at that time there was no special provision from the government in using a certain currency to get an item, And I believe money will continue to be a store of value for the foreseeable future.
Times have changed so much that there is no need to talk about bartering goods for goods that happened in the past before money existed. Because it has become history in this world where before there was money exchange and trade also happened through one item with another.

And this is actually not much different and almost the same as we exchange coins for other coins in an all-digital market at this time. So now is the era when money must be seen as an important tool that can be used to measure the price of goods, store the value of assets and buy the things we need.
hero member
Activity: 1036
Merit: 625
BTC, a coin of today and tomorrow.
May 13, 2023, 03:24:00 PM
#92
One of the functions of money in an economy is that it's serves as a store of value.
Yea, money is in no doubt a store of value but it is not a good store of value because it loses its value over the time. Not many people will want to store their value in money rather they would like to use money for exchanges of value rather than to store the value.

     While money is an asset that can store value, and also Gold and silver for example, acts as store of value.
Gold and other valuable assets are good store of value especially gold because it is in appreciation value over the years. Bitcoin can be a good store of value because it is a hedge against inflation unlike fiat money.
legendary
Activity: 2534
Merit: 1338
May 13, 2023, 02:38:50 PM
#91
Money is the main thing that is required for smooth functioning of day to day chores and the basic medium of transaction is money  so yes money is the store of value along with certain things like gold and stuff  .
The frequency with which value of money I'd fluctuating is the reason people are reluctant to save money for future infant they are looking for different new and profitable options to secure their future.
Money should be a store of value as this is part of its history, before money as we know it existed commodities were used to barter, then commodity currencies appeared and they derived their value from their usefulness and as such they were a store of value, finally with the advent of coinage money as we know it was born with the creation of gold and silver coins, however fiat currencies have distorted this and instead of being a store of value they steal it, and it is one of the main reasons why bitcoin was created at all by Satoshi.
hero member
Activity: 1680
Merit: 505
May 13, 2023, 01:47:00 PM
#90
Money is the main thing that is required for smooth functioning of day to day chores and the basic medium of transaction is money  so yes money is the store of value along with certain things like gold and stuff  .
The frequency with which value of money I'd fluctuating is the reason people are reluctant to save money for future infant they are looking for different new and profitable options to secure their future.
hero member
Activity: 658
Merit: 524
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May 13, 2023, 11:31:54 AM
#89
I don't agree if you say money is a store of value. I agree more with gold, and land as a store of value. this is because the value of gold always has a stable value, even if the price of gold falls not as badly as the value of money collapses, the same goes for land, every year it always has an increasing value, and land also depends on the area owned by a person.
therefore I prefer gold and land as a store of value

I can say that the things you have preferred are really stores of value and assets because they create more value for investment purposes and also generate income. Money can also still be referred to as a store of value because the purchasing power of money can buy you more assets of value, like the land and gold you talked about. You use money to do so many things that money can cost, so without the money, you can definitely not acquire land and gold unless you date back to the olden days when there was trade by barter, but since the introduction of monetary policy, bank notes are now respected for their purchasing power to buy things in the market. Despite the devaluation of money, the idea of money cannot be permanently eradicated, as its value may reduce more than it does now unless there is a solution that will make it gain more value. But normally, keeping just cash in one place without doing anything with it will either make the money just remain like that or reduce its purchasing power, but when you use the money to buy an asset that can create more value for yourself, then you have realized the purpose of money, which is to buy us more value.
hero member
Activity: 1400
Merit: 674
May 13, 2023, 11:10:28 AM
#88
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.

More precisely, basically Fiat money is a storage of value we know about it, but indeed the fiat money cannot maintain its value because the supply is always increasing which makes its value continue to decline, whether its use for saving the crisis or whatever is intended in the goal so that it print money In addition and then circulated, it will make the Fiat currency decrease in value because the supply of money is a lot, while the demand for money is only relatively stagnant that makes a currency decrease in value. Therefore, even though Fiat is a storage of values, but it is not effective in the long run because based on the situation above.

Gold, Bitcoin, Silver and others as a storage of values that are effective now also depending on the market demand, because most people already believe in gold or other noble minerals as a storage of values so that makes it worthy of a storage of value.
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