I do not deny the value of money in being a store of value, but I would like to express more about the more and more developed our society, the more new things will appear or the old assets that have existed since the beginning of time before.
1. Gold and other precious metals
2. Real estate such as houses, buildings, apartments, etc.
3. High-value jewelry and watches
4. Art and Cultural Works
5. Certificate of investment fund or shares of high-value companies
6. Cryptocurrencies like Bitcoin or Ethereum
All of these assets can be kept and stored for future use or resold for a profit. They have the ability to hold value for a long time and are seen as a way to secure their assets.
Topic: Money as a store of value... - page 5. (Read 811 times)
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.
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.
I agree that if paper money has a high inflation potential, maybe they will switch to digital currency and bitcoin will be an alternative.
I beg to disagree with you on the barter system of old as not a store of value, what they use in exchange for another could indeed be a store of value, we should not overemphasise money, it's just a liquid asset used in exchange for what we trade, just like the olden days. They trade something for something, and what they trade is valuable, which is why they could trade it. There are many other assets you could bring for another, you may store them as well depending on the longevity of that thing.
Maybe more to the age of the system. I apologize if there is a mistake, because if the barter tool used is gold, until now gold still has a high value and can be said to be a store of value. Maybe what I said refers to a barter system other than gold, silver, or other valuables which are no longer used as valuable investment items. 
Fiat, money or cash are true liquid assets and it's the most liquid of all the assets out there. But you know what? Wise investors won't let their value and worth be in the form of cash because of the inflation so depreciation is there.
And instead, they use cash to buy other assets that can be more valuable in the future because it appreciates and the purpose of it is to defeat the inflation that will suck the value of their money.
Those assets like real estate, gold, bitcoin and many more.
And instead, they use cash to buy other assets that can be more valuable in the future because it appreciates and the purpose of it is to defeat the inflation that will suck the value of their money.
Those assets like real estate, gold, bitcoin and many more.
I would not consider cash to be a store of value, seeing how inflation has been behaving these last three years, the United States (country that allegedly has the strongest currency on the planet) has not been able to go back to the 2% of inflation per year, as the FED had been accustomed to.
Perhaps, I would change my mind if the economical policies change in the future to aim for a 0% inflation in the long term or even some years with negative inflation. Which I believe to be very unlikely, to be honest.
Perhaps, I would change my mind if the economical policies change in the future to aim for a 0% inflation in the long term or even some years with negative inflation. Which I believe to be very unlikely, to be honest.
That will never happen, and we shouldn't blame the government entirely. The management of the population is growing day by day, the needs are constantly changing, and there are hundreds of things that affect it, so management is not simple. What they can do is maintain it for as long as possible, and at some point, the current fiat system will collapse and be replaced by another. If I remember correctly, the history of money has collapsed 5 times, and the US has dominated since 1920, but the collapse will certainly happen, and a new system will be born.
I assume that you mean rather a change of tendency and not an actually downfall of the system. What I think it is going to happen is that slowly, countries will start to diversify their assets, getting rid of their FIAT to store more gold and try to preserve their natural resources from huge companies with headquarters in countries that could be considered to be adversaries.
For example, Mexico not long ago nationalized their lithium reserves.
Also, if you check the list of inflation by country for 2021, there are still nations who have managed to maintain a negative inflation rate, Japan keeping it at -1% ans Switzerland at 0%. So it is not impossible for some, it seems.
Op this is not fair haha really your post has nothing to discuss still I can see so many replies, I am expecting they all are providing you with the right information as I can see your definition of the store of value is not appropriate. So let me add something In ancient times not too old but a few decades back Coin system was used for payment processing and that can be called the store of value and true it was also money but of another category. Transfer of value is based on uncontrolled distribution and in paper currency and electronic cash it's not possible.
Because the state is in charge, and they are directly controlling the supply of the money so you can't say that is the store of value in my country when paper cash was introduced bank of Pakistan was responsible for providing the value behind the paper as if you want that value you can directly go and change it with state Bank and the backed value was Gold, Nowadays it's just a stated policy bank can't give you the actual value behind paper because they don't have Reserves. Sold is the store of value, Bitcoin is and every decentralized asset which has nothing to do with the central authority can be a store of value.
It's another Discussion whether the particular store of value is good or not and which type of attributes it has and is it inflationary or deflationary with demand and supply. (Nothing can be Delfationary as far I know with time not even Bitcoin).
Because the state is in charge, and they are directly controlling the supply of the money so you can't say that is the store of value in my country when paper cash was introduced bank of Pakistan was responsible for providing the value behind the paper as if you want that value you can directly go and change it with state Bank and the backed value was Gold, Nowadays it's just a stated policy bank can't give you the actual value behind paper because they don't have Reserves. Sold is the store of value, Bitcoin is and every decentralized asset which has nothing to do with the central authority can be a store of value.
It's another Discussion whether the particular store of value is good or not and which type of attributes it has and is it inflationary or deflationary with demand and supply. (Nothing can be Delfationary as far I know with time not even Bitcoin).
[snip]
[snip]
Functionally you are right that money has four functions as you mentioned this even some sources there are mentioning the function of money more than four.- As a means of transferring wealth
- As a driver of economic activity
- As a means of payment
- As a means of hoarding wealth
[snip]
But there is little I need to say that of the four functions are not discussed at all as a tool to store value. It could be because money can make its value drop so it is not worth including in the four functions.
But we are also aware that money as a tool and means recognized as legitimate by the state that requires us to manage it properly. If we want the value to remain unchanged, then we need to take other initiatives such as investing. For me, that's the smart way.
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.
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.
In fact, in general, there are three functions of money, and what you said was one of the three functions of money, while you didn't mention the other two. The first function of money is as a medium of exchange, the second is as a unit of account and the third is as a means of storing value. Now, the derivative function of each money must also be known mate, where In its development, money is also used as a tool in the economic system so that it has other functions apart from what I have mentioned above.
- As a means of transferring wealth
- As a driver of economic activity
- As a means of payment
- As a means of hoarding wealth
In addition, each community must also know the types of money in circulation in their respective environments, such as types of money based on their material, namely coins and banknotes. As for the type of money based on the issuing institution, there are also two, namely, currency that is often used for payments by everyone and the other one is demand deposits, deposits or checks issued by the bank.
One more thing, the type of money based on its value is also divided into full bodied money and token money. Full money is money whose value is equal to the material used in its manufacture. For example, money made of gold has the same value as the gold from which it is made. Meanwhile, sign money is money whose value is higher than the value of the material used to make it. Source: bmoney.id
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.
Money is not regarded as a store of value anymore except if you're holding it in a digital form of cryptocurrency and bitcoin to say, why is because anything you can posses to loose value over time isn't a good form of an asset anymore, it's can be referred to a liability because with time the same amount of money you might have hodl may not be sufficient enough in paying your bills, but holding bitcoin has it profitability over time than loosing it's value.
You were right that paper money has a value, and it can be stored, we cannot argue with that, but the question is, does that amount you put in the bank still the same as the time comes? Let's put it simply this way, $1,000 is already enough in our family to survive whole month or even more, but do you think that figure will be enough in the future? Considering the constant rise of the prices in all the basic needs everyday do you think in the next 5-10 years that amount is significant? I don't think it is. That is the same situation even if you put that amount inside the bank, and guess what? for sure you'll earn percentage depends on how much you deposit by what method? Banks are going to play your money by example lending other people and giving them interest rates as their profit, and the duration? In my country it has minimum of 3 months, so let's just say they can lend it 4 times a year with 2% interest per loan, they have 8% APY just using your money and you get the 2% because that's what the bank promised when you put your money for time deposit. In short, they have 6% profit without lifting a finger and only using words and papers.
That's just a basic breakdown for an individual putting money inside a bank, so how much money does the bank have if all of you guys put your money at the same time? 100% profit isn't impossible to make if we're talking about banks, but that's just them not the individual whose blood and sweat being poured just to make "savings" for their future plans.
This is basically what happens in my country, but most of my fellow citizens lack options as to where they will put their mone. That is why they don't have that much options and choose to put it in bank instead. They'd usually think the bank is taking care of their money and it is secure enough to just let the bank manage their finances. With this simple breakdown you have, I'm sure a lot of people who are new to crypto would think twice into putting their money inside the banks.That's just a basic breakdown for an individual putting money inside a bank, so how much money does the bank have if all of you guys put your money at the same time? 100% profit isn't impossible to make if we're talking about banks, but that's just them not the individual whose blood and sweat being poured just to make "savings" for their future plans.
Based on my current experience there are some banks who are slowly introducing crypto to their users, so I guess it wont be long enough until new users will try to delve into crypto.
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 reason here is why the word fiat shouldn’t be called money because Is supposed to be a commodity that stays without losing its value but fiat along the line loses its value. What $1000 could buy today can be bought in few or more years to come due to inflation. So the inability of fiat not to hedge against inflation has made it not to be a store of value. Even banks includes interest on fiats loan not just to gain profit but to avoid loss in when the value depreciates.
The main function of money is as a measure of value, used to exchange goods, and can also be used to store value, but with its inflationary nature, money depreciates over time, so it should not be used as a store of value.
It can be said that money is essential for our lives, we will be in trouble if we do not have money to use. But when it comes to storing value, you should look to assets like gold, and real estate, and a more perfect option is bitcoin. BTC is not only a safe store of value and can help increase the value of your assets over time.
It can be said that money is essential for our lives, we will be in trouble if we do not have money to use. But when it comes to storing value, you should look to assets like gold, and real estate, and a more perfect option is bitcoin. BTC is not only a safe store of value and can help increase the value of your assets over time.
In the modern economy, currency is the most common asset class for storing value. The currency is widely accepted and can be easily converted to other currencies or used to purchase products and services. It ensures that the value of an asset is protected and maintained over time. Stores of value can be created in many ways, including using physical assets such as gold, silver, or diamonds, or using financial assets such as currencies, stocks, or bonds.
And money can bring justice to life because it provides everyone with the same means to exchange value and buy what they need. Money allows people to assess the value of a product or service objectively and easily compare prices between different products. This helps consumers have more choices and can choose to buy better products at a more reasonable price.
And money can bring justice to life because it provides everyone with the same means to exchange value and buy what they need. Money allows people to assess the value of a product or service objectively and easily compare prices between different products. This helps consumers have more choices and can choose to buy better products at a more reasonable price.
Money is supposed to be exchange for goods and services and that's it, its never can be a store of value which I am talking here is paper money we all are using everyday.
Store of value can be anything not really the money, it can be a land or product or asset which you believe the price will appreciate or atleast preserve its value against the inflation rate.
Store of value can be anything not really the money, it can be a land or product or asset which you believe the price will appreciate or atleast preserve its value against the inflation rate.
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.
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.
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.
I beg to disagree with you on the barter system of old as not a store of value, what they use in exchange for another could indeed be a store of value, we should not overemphasise money, it's just a liquid asset used in exchange for what we trade, just like the olden days. They trade something for something, and what they trade is valuable, which is why they could trade it. There are many other assets you could bring for another, you may store them as well depending on the longevity of that thing. 
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.
Money might be considered as a store of value by the books but does it actually store your money as it gets deflated over time. If you held $1 million in the banks and don't touch it for 10 years, when you go to retrieve your money, you'll be given that $1 million you kept but it won't be having the same purchasing power it did 10 years back.
Instead of using money as a store of value, use it as a means of exchange that it has been turned into. Use assets as store of value, assets appreciate over time and if you had $1 million invested in an asset and kept for 10 years when you sell that assets it'll be worth more than you invested in it.
Pal, ever pondered how money is but a figment of our collective imagination? It's wild! We concur that these slips of paper and gleaming coins possess value, but in truth, they're mere symbols representing our united faith in the economy. Mind-bending stuff, huh?
But I get the picture - we require a method to shift purchasing power across time. That's where money as a store of value enters the scene. The snag is, considering inflation and all that hullabaloo, we can't ever be certain our money will retain its worth in the future. It's a never-ending "will it or won't it" gamble - will our cash maintain its value, or are we toast?
But hey, perhaps that's part of the appeal. The unforeseeable, the ambiguity - it spices things up, doesn't it?
But I get the picture - we require a method to shift purchasing power across time. That's where money as a store of value enters the scene. The snag is, considering inflation and all that hullabaloo, we can't ever be certain our money will retain its worth in the future. It's a never-ending "will it or won't it" gamble - will our cash maintain its value, or are we toast?
But hey, perhaps that's part of the appeal. The unforeseeable, the ambiguity - it spices things up, doesn't it?
legendary
Activity: 2884
Merit: 1115
Leading Crypto Sports Betting & Casino Platform
I would not consider cash to be a store of value, seeing how inflation has been behaving these last three years, the United States (country that allegedly has the strongest currency on the planet) has not been able to go back to the 2% of inflation per year, as the FED had been accustomed to.
Perhaps, I would change my mind if the economical policies change in the future to aim for a 0% inflation in the long term or even some years with negative inflation. Which I believe to be very unlikely, to be honest.
Perhaps, I would change my mind if the economical policies change in the future to aim for a 0% inflation in the long term or even some years with negative inflation. Which I believe to be very unlikely, to be honest.
That will never happen, and we shouldn't blame the government entirely. The management of the population is growing day by day, the needs are constantly changing, and there are hundreds of things that affect it, so management is not simple. What they can do is maintain it for as long as possible, and at some point, the current fiat system will collapse and be replaced by another. If I remember correctly, the history of money has collapsed 5 times, and the US has dominated since 1920, but the collapse will certainly happen, and a new system will be born.
Jump to: