Bitcoin Forum

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.

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 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.

    It's true what you said, the barter they did back then was even different, and what they used to barter was often food in exchange for weapons, for example meat, pork, grass that was the result of hunting in the jungle, things like that in those days gold or silver or copper was not known then.

   But because people's minds evolved, little by little they discovered systems of exchange, until they discovered gold, silver and copper added as payment for what they wanted to get apart from bartering and until it came to the point that silver they have formed coins and even copper and gold.

This is exactly why cash or fiat is NOT money it is actually currency. Very few people know this distinction though. Basically ever since they decided to print fiat unstoppably they turned fiat into currency that can only be used as medium of exchange while it lost its store of value status.

BTW this is why one of the characteristics of bitcoin is to be both a store of value and medium of exchange, or in other words bitcoin is the best candidate to be considered "money" not just a "currency".

I only use money as a payment in my country, nothing more.

I mostly use Bitcoin as a store of value, I don't really care with the current price or during the bear market, because I know in the future Bitcoin will be worth more than what I have spent my money to buy it. When Bitcoin price reach new ATH, I will convert some of my Bitcoin into stable coin. So whenever I need cash, I can just convert my stable coin to fiat.

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.

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.

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?

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 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.

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.

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 (https://bmoney.id/blog/fungsi-uang-118304)

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.
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.

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).

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.

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.

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.

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.

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 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.

It's okay pal, we learn daily, and at times, our minds might slip on some things, and they are what we could naturally correct on a second thought. However, many more things than gold and silver could be valuable, and land, some types of clothes, and other valuables could. Also, dried foods and palm oil for example could even be a store of value, some are kept for certain seasons in which their prices would have skyrocketed, which could then be exchanged for more goods instead of the old value of the goods they were exchanging them for.

in the long run Money is by no means a store of value that can keep its value the same year after year. because the value of the currency actually continues to experience deflation from year to year. whereas Gold might be more suitable to be used as a store of value for our assets so that it is not too affected by inflation. even though gold also has fluctuations but with a range of price changes that are not far away. and the trigger is also due to changes in currency values ​​that are affected by inflation or something like that. so actually the price of gold is not too moving. but the money keeps moving. correct me if wrong.

In addition to gold, real estate is also a very good store of value and I think it is safer than gold. But the downside of these two assets is that they are quite bulky, it will be difficult to move as well as if there is a war, the real estate will depreciate. Although bitcoin is volatile, we can consider it as a store of wealth because of its advantages.

Assets are not requiring in any form, size and weight as long as it will give you hopes or potential that its market price will grow in the long run and in order to make money for your needs of ourse. Being a store of value should promote and endorse all of the things we see regarding demons for us to make use of it as an advantage and to strategize things. A war would be different because no matter what size your asset is, you'd be having a hard time focusing on things which are most imporatnt for one's career. Banks and money promotes security more than others but not absolute.During a war, no currency will be monitored because it would be a survival of the fittest.

well of course Real Estate is also another thing that can be an option to protect the value of our assets from time to time. but I personally consider Real Estate to be the best investment for the long term. because properties such as land and buildings covered in the Real Estate category always have a significant increase from year to year.

but if we talk in conditions if a war occurs then Real Estate will be the most affected. because Real Estate is not even as flexible as gold. if we compare it with gold then in a war situation we will find a clear difference. and Gold will be superior.
Why? because first, Gold is certainly more likely to be carried around by us to move from somewhere to avoid war. secondly, we can also use gold as a medium of exchange even in emergency situations. even the value of gold tends to increase during economic crises such as inflation and recession. even during wars we can see the value of gold always soars because gold is considered by many to be the best value hedge. Another advantage of gold is that gold can be traded in various forms of trading such as in the form of gold bars, gold jewelry, gold in the form of ETFs and even in the form of trading in futures contracts. even if a country's money is affected by inflation and becomes unstable and even continues to experience a decline in value. then Gold is always the best choice for citizens to protect the value of their assets. like many cases in countries affected by hyper inflation such as in Zimbabwe and in several countries in Africa.

I agree that many countries are hoarding more and more gold and natural resources, but their complete elimination of Fiat will never happen. Many countries are removing the USD from their foreign exchange reserves but instead choosing other countries' currencies, like the Chinese Yuan as an alternative. Fiat represents the economic strength of a country, the strongest country, then their currency will rule the world. Like the US, why should they always find ways for the USD to have the biggest influence in the world? So the world's elimination of the Fiat system will never happen but only a change of power because no one can stay on top forever.

Yeah, I'm starting to relate to your explanation about items that can be "expensive" in certain seasons. Perhaps it could be a means of seasonal bartering. for example, the wool-producing tropics bartered with fish from winter regions.

Now the world is more open because of the presence of smartphones, transactions in various countries that used to be very difficult are now easier and faster, if we want to get a good product of course we have to pay or buy more expensively, usually the price will determine the quality, as long as we don't have money then don't expect to get good quality goods.

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.

That may be true, but it's better to save money on something whose value will go up more in the future, because if you just keep it in the bank, your money will be the same amount but the value will decrease.
so i dont recomend you save money in the bank for a long time.

I don't think the main purpose of money was to store value, ever. Money was "invented" to allowed people to trade goods and services without having to barter to find an appropriate price. The increasing complexity of trade and transactions made bartering very impractical, or even impossible in some cases. So the main purpose of money was to make trade faster and easier.

Storing value in money makes sense to some point. Like multiple people have said before me, cash is the most liquid of assets. No asset will be 100% safe from inflation and other negative factors, but storing value in gold, real estate, stocks and other assets that are actually intended for storing value makes much more sense than keeping millions of dollars in cash. In fact, you probably know the story about Pablo Escobar and his problems of keeping massive amounts of cash. Now, of course, we're nowhere near having millions of dollars of cash in our apartments, but you get the point.

Obvious money stores value. I don't think anyone wants to argue on that. If money has not value there wouldn't been need to save money. Many people has fixed deposit account which is just like staking your coin for xyz duration of time. When the time reaches to withdraw money you will still see your money with its value.
However the purchasing power may likely reduce because of inflation that affects fiat system. This is the reason some people are longer saving in the bank

Bitcoin as a store of value is a great opportunity for Bitcoin to get more people wanting to hold it.
Because imagine you can have a money, where it's value is stable (or even a little bit inflation every year) or you have a money of limited supply, where value is likely to increase a little bit every year (Bitcoin).
In addition, Bitcoin as a store of value is also a good reason for many shops to accept Bitcoin.
A good store of value is also a good money, if it's easily portable and divisible. It's a very iportant point also for money, because Gold is also a store of value but not suited as a money because it's not easily portable and divisible.

I don't agree with your statement where you mean money is a store of value. I think gold really deserves to be mentioned as a store of value, the reason is that when the world experiences economic uncertainty, usually the value of money will fall, but the value of gold will continue to rise. as happened some time ago when covid 19 attacked the world, almost all currency values weakened. Therefore, in my opinion, gold is more worthy of mention as a store of value.

And as you can probably infer from your own explanation fiat currencies are not a store of value, in fact they do the opposite as instead they steal from anyone that decides to use them to save their wealth over the long term, and this explains why the rich are always buying everything they can with their fiat money, as they know that if they were to keep their wealth in this way they will lose more and more wealth, and this is simply unacceptable for them.

Well, I don't really consider our current traditional currencies, that is the fiat currencies to be store of value since they hold/store but little value overtime.
You will agree with me that traditional currencies, through inflation, have lost their purchasing power/value overtime, today what we used to buy for $1000 way back 1990, today in this year 2023 now sells for $10,000 if not more, this is not a characteristics of a true store of value and I think it is wrong to classify fiat currencies as store of value.

I think the real store of value is Bitcoin, and some other top crypto coins, gold, silver, real estate, company shares/bonds etc, all this I consider store of value because they have the ability to appreciate very much in value, thereby increasing their purchasing power, even after they might have depreciated before.

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. But at the same time it is an asset that goes up in value as well. It works both ways and I believe that it is the reason why people loved it so much. Imagine your money in your pocket goes up in value all the time while you have it there, then you spend it, and then it continues to go up. That is not the world we live in, right now the mone yin our pocket loses value when its there and that's why its such a sad situation.

Money is an important thing in life, if we are not good at managing finances then we will regret and of course cry, now there are many suggestions from financial experts that we can adapt to the conditions that happen to us, as long as we can follow their advice then we will be successful.

This is why you shouldn't write on sensitive stuff like this from the top of your head without making your research. It's really absurd to classify money (fiat) as a store of value. It's obviously not. Anything that depreciates in the presence of inflation can't be quantified as such. We can say Gold is. Bitcoin is. But not fiat. For instance, a few years ago in my country N100 was $1 in 2008. Today, N745 exchanges for $1. Inflation has beaten the hell out of the local currency with virtually no corresponding value to show for the difference. N100 in 2008 had a better purchasing power than the current N745 of today. Every Nigerian know this.

Money, the biggest friend of inflation, I am surprised that many members are classifying money as a real store of value, something that depreciates very fast in a matter of months, to me money is not a real store of value and shouldn't in any way be considered as one, the example of store of value are things that retain their value or add more to their value as time goes by, for example Gold, Silver, and all other precious stones you can find around the world, they are very hard to find and they are very useful, this is why they are good store of value. 

Another good store of value is Bitcoin, as risky as Bitcoin is, it's a good example of real store of value because its deflationary and useful, yes it's currency but in a storing of value manner, way better than Fiat or Money when it comes to store of value.

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.

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.

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.

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.

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.

That's right, i also thought so. Because if we think again, money is very at risk of inflation and when that happens and makes it lose value, it can't be said to be a store of value. Crude oil and gold really fall into this category, but if the main discussion is the store of value from "transaction tools" from time to time, I think crude oil and gold are too large-scale. If we talk in the scope of society, then money is the main means of transaction other than barter by exchanging foodstuffs or goods that each wants. I hope you know what I mean.

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.

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.

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.

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.

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.

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.

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.

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.

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.

I would say since we are in the bitcointalk world, I would guess that there is a bit more likeliness to buy bitcoin than gold, and that way you would be able to hold your money in something that is easily liquidated and you would be able to take a profit from the ups and downs of the fiat world as well. It is not going to end up with anything at all, but there is absolutely no way that I would give that up.

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.

There is no need to discuss the transaction system anymore even though all of this goes hand-in-hand with the times and is in harmony with its functions.
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?

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.

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.

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.

In the past money used to be a store of value but not anymore judging from the worsening economic crises in the country where I reside and the rapid devaluation of the currency. Yes, devaluation is the word that tells that money isn't anymore a store of value. Depending on your point of view and stand point, Bitcoin can be argued as a store of value. At least I read one time where some people in a particular country took out their money from their banks to buy Bitcoin so as to wealth from falling. Real estate is to me a store of value. It's value doesn't drop. Gold and other precious metals act as a store value. In summary, the worth of money is not what it used to be because Bitcoin and other digital currencies are taking over.

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What's the point that you're making? That paper money has value?

I'm sure we could look at the global economy over the last hundreds of years to recognize that paper currency has value. It's not that anyone is challenging that. You may mention where that value comes from, though. The value of any currency originates from the government. The paper within itself is inherently worthless. In fact, you could have millions of units of currency and have the net worth of zero if you don't find someone that holds the currency attributable to the same value you do. Gold and silver at least have some inherent value so they're not comparable but they're often lumped together with currency.

Money is such a broad name that encompasses anything that could be accepted for a means of payment on goods and services. Now, not all money are still useful in present times, like the cowries, the manilla and the rest of them from a time past in Africa. These are still regarded as money but, most have no value except being displayed in museums.
Now, money cannot be regarded as an asset, not all money I mean as, most are subject to inflation and many other influences mainly from the government as they are the issuers. Assets aren't something you use in an everyday expenditure and that's very much what is the business with fiat.

Bitcoin ad Gokd perhaps could fit in but, not so much with fiat currencies and still, bitcoin haven't gotten a general acceptance by the masses.

Money is something that can make us happy or sad, many people do anything for money, it's normal for people to want to sell organs like kidneys to get money, but as humans we have to think positively that helping people in need is a noble act that will make us happy.

Money should be a store of value as it is one of its most basic characteristics, for example thousands of years ago before money as we know it was created we had commodity currencies, people use commodities to trade with others and on some parts of the world tea was a popular way to trade with others, but tea was not a good form of money, because even if people knew it was valuable it could not act as a store of value as it deteriorated too fast, and this is a similar problem we are facing with fiat now.

Although money will continue to be a stored value in the future, it does not guarantee to be the only one. I think cryptocurrencies will have a great impact on the future of fiat money since it offers a more decentralized way of transactions. This would be of great challenge when a lot of people would recognize and adapt to the advancement of our society through cryptocurrencies. Also, the inflation that is currently experienced in various countries would totally affects the way the stored value of money is seen. The ongoing increase of inflation rate would make low purchasing power of the people. It would probably shift people to digital currency since it really shows more advantages than current fiat money, but all in all I think fiat money would co-exist with cryptos in the future.

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

yes, it can be stored, but i cannot guarantee its value. we are all aware that for money to become a store value, one must put it inside their respective banks and it is also a method to earn interest as what we commonly call "time deposit", but we are also aware that there is only a little bit if interest rate in which your money can grow, and if you ask me if is it worth it? no, it's not worth it if your money is too little. are the wealthy and relatively rich people put money on their banks? yes, but not that much coz they knew how much it can grow if it is cultivated outside, so they will choose the latter option.

Money, money, money! Philosophizing about its worth is a mind-bender. You hit the nail on the head – money's a flaky store of value, with its worth spiraling downward due to inflation. It's downright unsettling to ponder how much our cash has depreciated.

Central banks jacked up interest rates, hoping to reel in customers and spur savings, but it barely made a dent in inflation. Cue the existential queries: How do we safeguard our financial assets? Time to ditch old-school saving tactics for fresh investment strategies?

Let's put on our thinking caps, seek inventive ways to invest, and dodge inflation's fallout. We must hunt for methods to shield our money's value and make sure our assets multiply. Bottom line, money ain't the store of value we'd like, but we can play it smart with investments and explore alternatives to bolster and expand our assets.

You are correct that a store of value maintains its worth over time, and money serves as a store of value in an economy.


This is because cash allows people to transfer purchasing power from the present to the future, which makes trade more efficient. Gold and silver can also act as stores of value because they are durable and can retain their value over time.


This ability to store value over time is one of the critical functions of money in an economy.

By treasury and money we mean two different things. By money we mean paper money or digital money which we cannot use directly but we can use it by accepting something in exchange for money. But by treasury we basically mean the source of money or the storehouse of money. Your land deposit can be your source of money or everything related to this is treasure. That is, cash is generally not considered as treasury. We can call treasury as financial treasury. where our money is stored, financial treasury or treasury plays a major role behind the development of a country.

Crypto is the finest because of this. It's not really "money" as we understand it, but it's also not merely an asset. It is advantageous to utilize fiat currency as well as cryptocurrency to make purchases. However, it is also an asset that increases in value. It functions in both directions, and in my opinion, this is what made people adore it so much. Imagine that while it is in your pocket, the value of the money increases continuously. After you use it, the worth of the money increases once more.

money is an evolution of the previous way of exchanging goods. well you could say it also has value in it even though at first money was just paper. but it became a high value when the state decided to use money as a medium of exchange for goods before using the barter system to exchange goods. The existence of paper money also makes wealth and poverty a consideration that can be mentioned when they can show how much and how little money they have.

Well, fiat money is a poor store of value because it keeps losing purchasing power. There are some better than others, however, as the Euro is much better than the Bolivar, for example.


Of course, inflation is much more noticeable now than in 2015 for example, so it is better to look for better stores of value than fiat, such as Bitcoin, but if we buy Bitcoin with that idea we must do it for the long term and be aware of the volatility.


We may be a bit biased on this forum regarding Bitcoin, but I agree with the general analysis you make. I believe that little by little the trend is already reversing.

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.

Money is indeed a tool that is currently often used to get an item we want, and money has become a storage tool that we can still use in the future and its value remains the same even though it has changed years, but it is very different from gold and silver although they can store value but at any time they can change in value and are very dependent on economic development, But in the past money was not everything because there were still many people who bartered between one item and another and they were used to it and at that time money was not as reliable as it is today.

It can be said that money used to be a reliable store of value, but with increasingly unstable economic development creating a crisis, money is no longer a safe store of value. Money still plays an important role in the commodity exchange system of the worl d economy, but it shouldn't be considered a store of value these days.
I agree with you, metals, real estate, or bitcoin are more suitable than money as a store of value because, over time, they not only maintain the value of our assets but can even profit for us so that we can resist the devaluation of the currency.
We can't eliminate money from our lives but don't trust it too much as its value decreases every day, diversify your assets if you don't want to be poor in the future.

Correct! Generally, money will hold its value with a little bit of volatility, even in times of financial crises in certain countries, which may affect the local currency. However, in the long run it is still safe to use your local currency, especially if your country is strong and stable.

As you mentioned above, assets can provide additional wealth and are less likely to be affected over time. In fact, they may even increase in value and provide a profit, making them excellent long-term investments. Three such assets that come to mind are gold, real estate, and Bitcoin. These investments are known to be profitable and relatively stable over time.

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.

I can't accept money in form of fiat as a store of value or a profitable asset because alot of factors are waiting to degrades it value down along the line whereby what a thousand dollars can buy may not be able to afford buying it anymore except you added to it, inflation is one of the major player i will this kind of occurrence, but the digital technology has advanced the financial monetary system with cryptocurrency and one can invest in bitcoin and make good return from it over time without being affected by inflation or economy instabilities.

Money was once a store of value, but it is no longer relevant because inflation kills it daily. Instead, we have alternatives like bitcoin, gold or other metals because these assets will increase in value over time instead of decreasing like money. But nothing is perfect, bitcoin investment can help us fight inflation but also make us poorer because bitcoin is a volatile asset, and its future is uncertain. If talking the best place to store value today is still gold and real estate.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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?
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?

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!