Topic: Money as a store of value... - page 3. (Read 807 times)
Money is something that everyone really needs, and right now money is the best motivation to get someone excited about life, but we have to understand that managing finances is very important so that it can determine our future, so be careful when we want to use money.
Money can be used as a store of value because it is durable and acceptable for a very long period of time. I hardly see where a fiat stopped to exist because of change of government or something of that nature.
What we will complain about is depreciation in the value or purchasing power of the fiat which is one of the cons of fiat.
On the other hand, cryptocurrency has its own cons which is volatility.
Maybe we could say that the perfect means to store value is gold.
If it's a coin, it is durable but if it's paper money, not it isn't but you can store it in a safe/vault or keep it in the banks. You should only be ready about the risk for doing it because there are so many complaints about the banks lately. In most definitions, money is considered as a store of value but some definition states that a store of value must be an asset or something which can retain its value.What we will complain about is depreciation in the value or purchasing power of the fiat which is one of the cons of fiat.
On the other hand, cryptocurrency has its own cons which is volatility.
Maybe we could say that the perfect means to store value is gold.
I think money isn't like that but it can lose it's value in the long run because of the inflations. We are in the era where cryptos are now popular and use by the many. It might be possible that one day, a fiat will be replaced by them. I better watch out before your money becomes obsolete.
Barter was the beginning of transactions. The first change from the barter system continued with coin or metal currency. Along with the times, the system again changed from coin or metal currency to paper money and applies to this day which is better known as fiat.
Paper or fiat money cannot store value due to inflation and has been proven over the years. So with the progress of the world, it is time to enter a new change related to currency and the world is adjusting to digital and Bitcoin is one of the currencies that can store value.
Refers to a transaction tool that has value, there is also a small possibility of returning to the barter system. But it's also a little difficult because for example using gold, if the transaction is small then it's difficult to solve it.Paper or fiat money cannot store value due to inflation and has been proven over the years. So with the progress of the world, it is time to enter a new change related to currency and the world is adjusting to digital and Bitcoin is one of the currencies that can store value.
I agree that if paper money has a high inflation potential, maybe they will switch to digital currency and bitcoin will be an alternative.
Now is the time for us to face further changes to the economic system including everything related to the economic system such as transactions.
More precisely along with progress and development, Bitcoin is the next change.
Are we ready before the world as a whole implements it?
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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.
Good luck with your money, personally I will choose gold over fiat as the best option. Unlike fiat which will be under the pressure of inflation, gold will protect our money from inflation in long term that's why when there are many negative about a country like a war, bank collapse, etc. people will tend to move their fiat money to gold or other instruments. 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.
Not many people consider that as an option in the world just yet, and most still prefer gold, but there will be time when bitcoin will surpass gold as an option. That won't happen anytime soon, like this year, but in the next 10 years it could happen.
In general, money cannot maintain its value in the long term because the amount of money in circulation continues to increase over time, causing inflation. Inflation occurs when there is too much money circulating in the economy and an insufficient amount of goods and services available for purchase. This can cause the prices of goods and services to increase significantly, thereby affecting the purchasing power of money.
However, inflation is not always bad. Moderate inflation can promote economic growth and provide incentives for consumers and producers to buy and sell goods and services. However, high and uncontrolled inflation can cause huge losses for consumers and investors, and damage the economy as a whole.
Meanwhile, investing in bitcoin assets can provide protection against inflation as their value tends to rise over time. So I thought, By investing in bitcoin type assets, you can minimize the risk of inflation and reduce its negative impact on your finances.
However, inflation is not always bad. Moderate inflation can promote economic growth and provide incentives for consumers and producers to buy and sell goods and services. However, high and uncontrolled inflation can cause huge losses for consumers and investors, and damage the economy as a whole.
Meanwhile, investing in bitcoin assets can provide protection against inflation as their value tends to rise over time. So I thought, By investing in bitcoin type assets, you can minimize the risk of inflation and reduce its negative impact on your finances.
do you think money can retain its value?the amount of money in circulation will continue to increase over time,that is why inflation occurs.
as opposed to something that is a fixed amount, since the value will continue to rise all the time, there may be a small correction but in the long term it is not too worrying.
Keeping our wealth assets in the form of money will indeed only make our wealth assets continue to decrease in value. because money continues to be affected by high inflation. The central bank is currently continuing to raise interest rates to attract customers to make deposits and save more at the bank. but in fact this did not really have much of an impact on reducing inflation. there may be a slight decline but if it continues then the threat of a recession becomes more likely. because even today people are starting to save money and spend less money. so that the circulation of money in the economy has decreased slightly (slowing the velocity of money). and this is also not good in the economic cycle. so for sure the central banks will start lowering their interest rates but that also means the pressure on inflation will be a bit slack. and this is why money cannot be used as a store of value. because money tends not to retain its value. without even realizing it every year money continues to experience a decrease in value little by little. as opposed to something that is a fixed amount, since the value will continue to rise all the time, there may be a small correction but in the long term it is not too worrying.
The issue right now is that saving money while inflation is plaguing the economy is a bad idea all around. You can invest your money to get a nice return rather than just keeping it in a savings account. It may not even be essential to invest in Bitcoin but rather other types of investments. Money is employed either as an investment in value or as a widely accepted form of payment that holds its value over time. People can earn money, store it, and then spend it later with the knowledge that the value has been maintained through time. As you mentioned, trade led to the invention of money in the 19th century, which was then followed by the influx of gold, silver, and cowries in Africa.
do you think money can retain its value?the amount of money in circulation will continue to increase over time,that is why inflation occurs.
as opposed to something that is a fixed amount, since the value will continue to rise all the time, there may be a small correction but in the long term it is not too worrying.
as opposed to something that is a fixed amount, since the value will continue to rise all the time, there may be a small correction but in the long term it is not too worrying.
Good luck with your money, personally I will choose gold over fiat as the best option. Unlike fiat which will be under the pressure of inflation, gold will protect our money from inflation in long term that's why when there are many negative about a country like a war, bank collapse, etc. people will tend to move their fiat money to gold or other instruments.
There is nothing wrong if you choose to save gold instead of Fiat for the several reasons you mentioned, but you should also know that the price of gold also has the potential to fall at any time, even if only in a very small size. I also like to store gold instead of fiat, but I also like to store other assets like land and Bitcoin because those two things are also good enough to keep the value of the money we have.
Even though Bitcoin sometimes drops in price, when Bitcoin becomes harder to find, the price will also increase rapidly. Apart from that, you still have to use bank services for the rest of your life even though you won't be saving more money in it and one more thing I think it would be better to also save some important assets rather than just keeping one of them for now.
but what goes further about money, is that the value of money will continue to decrease every year because the government and banks will continue to print money as they please, so that's why there will continue to be inflation, deflation may occur but the ratio is very small.
This is one of the greatest advantages of bitcoin over fiat in terms of limited supply, maybe they could discover this as a major reason to why the market economy always run on inflation because there's no limit to the particular supply of fiat currency, so if you think you're having fiat as a store of value then one is deceiving himself because it will drop in value and depreciate over time, that is why the new technology with digital currency in crypto makes it more convenient and profitable to use than fiat.
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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.
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.
Good luck with your money, personally I will choose gold over fiat as the best option. Unlike fiat which will be under the pressure of inflation, gold will protect our money from inflation in long term that's why when there are many negative about a country like a war, bank collapse, etc. people will tend to move their fiat money to gold or other instruments.
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.
You are deeply mistaken in asserting that money is a store of value. Money has always been just a medium of exchange. The use of money as a store of value has always been impossible due to inflation, which constantly reduces the purchasing power of money.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.
Gold and silver are now a store of wealth. Profitability is not high, but at least it allows you to freeze money, preventing inflation from depreciating.
A completely different alignment with bitcoin, which can be used both as money and as a store of value. Unique property to combine this.
We ate going to deep or spiritual lol in this matter.
I am surprised that everyone has made u-turn to say that money is not a store of value. While this is exactly what we learnt in elementary economics that one of the characteristics of money is that it is a tore of value.
If money is not a store of values why do we save with it. In order to recognise money as a store of value doesn't mean that money needs to hold the value to 100yrs. Even gold may not be a store of value in the next few decades. So, money is a store of value in as much as it transfers purchasing power to the future.
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.
Indeed, stores of value are an important component of any financial system. This allows individuals to transfer their purchasing power from the present to the future, without worrying about losing the value of their wealth. Money, being a widely accepted medium of exchange, functions as a store of value. However, assets such as gold and silver, have also historically been used as a store of value due to their scarcity and durability.
The concept of store of value is closely related to financial markets, as investors are constantly looking for ways to preserve their wealth and protect their investments from inflation and other economic risks. Store value is an important consideration when making investment decisions, because the ability to store wealth over time can have a significant impact on an investor's return.
Before there was money, in ancient times they still used the barter system, whatever the barter was, it depended on the agreement of both parties. But the barter system cann't be declared a store of value, because it has no future value and only has value in the past. So that currency emerged as a tools of payment, a store of value, and as a medium for pricing an item.
What you are elaborating on, is a trade by barter, and during ancient time they used trade by barter for exchange of goods and services, that doesn't mean that what they exchange at that point is a store of value, what they actually do is to exchange to what they needed at point in time. When you said a store of value, the things which I believe that falls in between that should be future things that in fifty years coming it will still be valuable, and such things may classifies as crude oil and Gold. The two things mentioned above is what we can see as store of value because the value doesn't depreciate even though it get it's been reframe, the aspect of money, it get loss of value, it depreciated when it get stock for long periods, either they will be inflation or they will be change currency, so if you stock money physically not in bank and redesign of such currency happens, its obvious that you have lost the currency and it become valueless. So in summary store of value from my observation is crude oil and gold.
Use money as a means of trading but never as a store of value. It is one of the easiest asset to be hit by rapid changes and fluctuations in the world market. I wouldn't really rely on it to store the value of my assets. Instead, I'd use that money to buy some other valuable asset that will help me maintain what I have if not help get profit from it. Cryptocurrencies are a good start, and precious stones could be a great addition to the stash if keeping value is your main goal.
Money can be used as a store of value because it is durable and acceptable for a very long period of time. I hardly see where a fiat stopped to exist because of change of government or something of that nature.
What we will complain about is depreciation in the value or purchasing power of the fiat which is one of the cons of fiat.
On the other hand, cryptocurrency has its own cons which is volatility.
Maybe we could say that the perfect means to store value is gold.
Use money as a means of trading but never as a store of value. It is one of the easiest asset to be hit by rapid changes and fluctuations in the world market. I wouldn't really rely on it to store the value of my assets. Instead, I'd use that money to buy some other valuable asset that will help me maintain what I have if not help get profit from it. Cryptocurrencies are a good start, and precious stones could be a great addition to the stash if keeping value is your main goal.
This is why crypto is the best. I mean it is neither "money" as we know, but not just an asset. It is both good for spending money in a regular way, like fiat, you can use crypto to buy stuff.
I don't think it's right if you say Crypto is the best store of value, the problem is that crypto is fluctuating and uncertain with the value it gets. with irregular or abnormal market conditions will make the value of one's assets decrease, because in my opinion it is not feasible if crypto is mentioned as a store of value.
As Bitcoin users, of course we feel great benefits rather than bitcoin, it is natural that many want to eliminate Fiat function because it has many weaknesses, stocks that cannot be added and decentralized systems certainly make Bitcoin is future money.
but what goes further about money, is that the value of money will continue to decrease every year because the government and banks will continue to print money as they please, so that's why there will continue to be inflation, deflation may occur but the ratio is very small.
I agree with your point.
Permit me to say there are other store of value aside money such as Landed properties can also be regsrded as store of value because landed properties appreciates in value and if you look at it well you will realize that landed properties are a higher store of value than money.
For instance, $100 today will still be $100 next year but a landed property that is worth $20000 today in a central business districts can rise to $50000 in years to come.
Permit me to say there are other store of value aside money such as Landed properties can also be regsrded as store of value because landed properties appreciates in value and if you look at it well you will realize that landed properties are a higher store of value than money.
For instance, $100 today will still be $100 next year but a landed property that is worth $20000 today in a central business districts can rise to $50000 in years to come.
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