Hi Excuse me Are currencies a "store of value

[romiio00]

Hi i'm monolicaคาสิโน
A quick history of currencies and paper money shows that money began as a deposit of a certain value of gold/silver and then turned into a representation of the promises of those who issue it.
Looking at the US dollar, it has lost more than 90% of its value, making all paper currencies a bad example of a "store of value." "I do not want to mention the scenario that happened in the state of Venezuela or Germany after the war."sagame

[TheUltraElite]

Dollar did lose its value and it shows that it would have been a bad store of value.

Now the good thing about gold/silver is that they are tradeable anywhere in the world and since they are noble metals gold>silver, they would not get stains and remain pure for long periods making it a good source of gifting to the next generation. It is thus inheritable.

Added to this and leaving out the "loss of purity" is bitcoin, making it more advantageous than gold for store of value. But using bitcoin and storing it has it own problems. You need to be somewhat tech oriented and know how to keep your keys safe and your devices safe.

Contrary to others, I do no consider any single asset to be "ideal"  each of them has their own pros and cons, so choose what you feel is good. Remember that storing your assets in different forms is also a good option, but will carry more workload.

[electronicash]

the  government decides the value of  currencies which is why its not volatile as it is. the government also decides its volatility by not or printing more of it. now that we know 90% of its value were  lost, what was lost in BTC when its  growing exponentially over the years of existence? due to it people are already considering BTC as investment not even a currency. the  adoption  had helped it grow.

[Wexnident]

Well, dollar lost its value because of the over printing done by the banks. They did it to stimulate the growth of the economy they said, but it was over done. It has far exceeded the purpose of stimulation which resulted in the global debt of the world reaching an astronomic amount. This was why a lot of analysts have released their ideas that gold/silver is increasing in importance right now, and even banks have ideas of hoarding gold and silver so in case of an economic crash, they could fall back to it.

[alyssa85]

Well, dollar lost its value because of the over printing done by the banks. They did it to stimulate the growth of the economy they said, but it was over done. It has far exceeded the purpose of stimulation which resulted in the global debt of the world reaching an astronomic amount. This was why a lot of analysts have released their ideas that gold/silver is increasing in importance right now, and even banks have ideas of hoarding gold and silver so in case of an economic crash, they could fall back to it.

The USA is targetting inflation of 2% per annum. That means by definition the currency loses purchasing power of 2% per annum. Compounded this means severe loss of value over time.

The only thing that really keeps it's value is property. Even gold has been known to lose it's vale (see early 1990's).

[avikz]

Hi i'm monolicaคาสิโน
A quick history of currencies and paper money shows that money began as a deposit of a certain value of gold/silver and then turned into a representation of the promises of those who issue it.
Looking at the US dollar, it has lost more than 90% of its value, making all paper currencies a bad example of a "store of value." "I do not want to mention the scenario that happened in the state of Venezuela or Germany after the war."sagame

Currencies were a store of value earlier when the world economy was following Gold standard! With the abolishment of Gold standard, currencies are not anymore a store of value. It can be better described as a promissory note where the issuing authority takes care of the value and it is now backed by the debt papers! No wonder why it has started loosing its purchasing power!

[The Sceptical Chymist]

Dollar did lose its value and it shows that it would have been a bad store of value.

I think that depends on how long a time period you're talking about.  The USD isn't a horrible store of value over the course of maybe a year, but you wouldn't want to hold dollars without earning interest on them, because obviously inflation would eat away at the value.  But yes, fiat currency is a store of value even if it's not an ideal one. 

I agree with your assessment of gold & silver which are both traditionally considered better stores of value than fiat.  Even with price fluctuations they tend to hold up well over time (though not if you bought either one in, say, 2011). 

People tend to ask this question a lot about cryptocurrencies, and I tend to think they aren't good places to store value--at all.  You might make a good profit or you might lose money, but what you won't get is stability.  Gold, silver, and even fiat currencies like the USD can provide that more so than something like bitcoin.  If you need a safe-haven asset, the worst thing you could turn to for that is bitcoin, and certainly not any altcoin.

[Darooghe]

It is a store of value but it doesn't mean store of value is the primary function of money. there are many things that store value more effectively than money for example houses. It is that in order for money to function in it's primary capacity, which is to provide the market with liquidity, it must also store value, otherwise no one would want to hold it and therefore accept it as a medium of exchange. Money gets it's value from the market within which it is used as a medium of exchange.

[alani123]

Currency in specific I think has more properties than being just a store of value. Some currencies can do that better than others and when government issued money was backed by gold and had a certain amount of gold tied to it, it was better as a store of value. But in terms of being able to store value immutably, BTC is better that any form of FIAT due to trustlessness. If the metric we care about is price stability though, crypto and BTC are lacking.

[abhiseshakana]

Hi i'm monolicaคาสิโน
A quick history of currencies and paper money shows that money began as a deposit of a certain value of gold/silver and then turned into a representation of the promises of those who issue it.
Looking at the US dollar, it has lost more than 90% of its value, making all paper currencies a bad example of a "store of value." "I do not want to mention the scenario that happened in the state of Venezuela or Germany after the war."sagame

Money as a store of value. When a currency functions as a store of value, the owner certainly has the hope that the currency he holds can be obtained easily and can be exchanged for goods or services in the future according to his needs. The economic value of the goods or services purchased in the future is expected to be the same as the money used or stored today. Here money is forced into a stable value storage device.

Money is not included in the utility function because the benefits we get are not from the money directly, but from its function as an intermediary to change one item into another item. Motive demand for money is to meet the needs of the transaction (money demand for a transaction), not for speculation. The impact of changing the function of money from being a medium of exchange and a unit of value into a commodity can be felt now, known as the "Bubble Gum Economic" theory.

If money is already considered as a store of value and wealth, there will be a lot of hoarding and speculative holding of money which will result in impeded exchange of commodities, goods, and services in the economy. This is because theoretically, speculative holding of money says that people can speculate about changes in interest rates in the future, including changes in bond prices on the bond market.

[Febo]

Hi Excuse me  Are currencies a "store of value

They will be as soon as adoption ends. Until then since more and more people use cryptocurrencies they are over long term more like increase of value.   Emission inflation under Golds one 1.7% grantee that. Bitcoin will reach that in 5 years time. Other cryptocurrenicies some faster other slower.

[panganib999]

The only thing that really keeps it's value is property. Even gold has been known to lose it's vale (see early 1990's).

Well yes. But property isn't generally used to help the economy restore itself, but rather gold. Gold has been known to be one of the steadiest properties that have not seen any huge changes in its price in the recent years. With Fiat currently collapsing literally on us, gold would still be the best choice instead of properties. Sad to say about how America has been printing money though. They know what is the issue but they refuse to address it and is instead preparing for another economic crash like the last time.

[1Referee]

Bitcoin will reach that in 5 years time. Other cryptocurrenicies some faster other slower.

Actually, Bitcoin will have an inflation rate of ~1.8% next year as the reward halving takes place. The general assumption of an okay fiat inflation rate is 2% (has definitely been higher in the last years in most countries), which means that Bitcoin will inflate less than fiat, and actually increase people's purchasing power over a longer period of time.

In 2024 the rate of inflation for Bitcoin will be ~0.9% which is just insanely low. I'm pretty sure that the market as always will front run this event and reflect the super low rate of inflation a year or two before the 2024 halving. In other words, getting in now is quite a good time if you have the free capital that you won't be needing in the forthcoming years.

[Betwrong]

Hi i'm monolicaคาสิโน
A quick history of currencies and paper money shows that money began as a deposit of a certain value of gold/silver and then turned into a representation of the promises of those who issue it.
Looking at the US dollar, it has lost more than 90% of its value, making all paper currencies a bad example of a "store of value." "I do not want to mention the scenario that happened in the state of Venezuela or Germany after the war."sagame

When you are talking about something losing its value, please specify the time frame, because it looks confusing otherwise. US dollar has lost 95% of its purchasing power since 1799. But, on the other hand, can you name a currency which has performed better than that? Also, with regard to the economy, inflation isn't a bad thing, rather its an intrinsic part of of the economic growth the modern world has been experiencing.

Regarding your question, currencies must be used as a medium of exchange, in the first place. The more people use them as an asset, the worse for the economy.

[CarnagexD]

The only thing that really keeps it's value is property. Even gold has been known to lose it's vale (see early 1990's).

Well yes. But property isn't generally used to help the economy restore itself, but rather gold. Gold has been known to be one of the steadiest properties that have not seen any huge changes in its price in the recent years. With Fiat currently collapsing literally on us, gold would still be the best choice instead of properties. Sad to say about how America has been printing money though. They know what is the issue but they refuse to address it and is instead preparing for another economic crash like the last time.

You forgot to take note that gold is much easier to hoard. I'd rather store my valuables in form of property that will generate more value eventually. As you have said gold has not seen any huge price difference with the past years, making me think of the value of yesterday is as is the value of today.However looking upon the value of properties over time, we can see that price per any measurement increases with time just passing by. What is really the reason why fiat losses it is because of too much savings from us. As we see fiat being an asset rather than currency the more it weakens the economy.

[Kyraishi]

I don't the main point of the dollar was to be a storage of value. It's possible it was created for that purpose, but it's very fair to say that was just not going to happen after it became widely used as a payment method, and it's very hard for an asset to retain it's value, while being used for payments, while the government also constantly injects more of the currency in the economy.

Answering your question, I do believe that even though cryptocurrencies are volatile, it is fair storage of value and this is mostly due to the limited supply and public perception it's gained as an investment option, not a payment option.

[jseverson]

Dollar did lose its value and it shows that it would have been a bad store of value.

I think that depends on how long a time period you're talking about.  The USD isn't a horrible store of value over the course of maybe a year, but you wouldn't want to hold dollars without earning interest on them, because obviously inflation would eat away at the value.  But yes, fiat currency is a store of value even if it's not an ideal one.

This. I would also like to note that countries suffering from hyperinflation like Venezuela are hoarding USD and Euros to protect their wealth (to a scale even larger than crypto), so we can clearly see that fiat can fill that role perfectly well in real world use. It's also literally a property of money:

Second, money must serve as a store of value. Consider the barter between the hairstylist and shoemaker again. The shoemaker risks having his shoes go out of style, especially if he keeps them in a warehouse for future use—their value will decrease with each season. Shoes are not a good store of value. Holding money is a much easier way of storing value. You know that you don’t need to spend it immediately, because it will still hold its value the next day or the next year. This function of money doesn’t require that money is a perfect store of value. In an economy with inflation, money loses some buying power each year, but it remains money.

It has to be said that there are clearly better options for that if you want long-term storage, but nothing beats it shortish-term considering its liquidity.

[AjithBtc]

Hi i'm monolicaคาสิโน
A quick history of currencies and paper money shows that money began as a deposit of a certain value of gold/silver and then turned into a representation of the promises of those who issue it.
Looking at the US dollar, it has lost more than 90% of its value, making all paper currencies a bad example of a "store of value." "I do not want to mention the scenario that happened in the state of Venezuela or Germany after the war."sagame

When you are talking about something losing its value, please specify the time frame, because it looks confusing otherwise. US dollar has lost 95% of its purchasing power since 1799. But, on the other hand, can you name a currency which has performed better than that? Also, with regard to the economy, inflation isn't a bad thing, rather its an intrinsic part of of the economic growth the modern world has been experiencing.

Regarding your question, currencies must be used as a medium of exchange, in the first place. The more people use them as an asset, the worse for the economy.

Around 50 years back Indian currency has performed better than USD and any other currency that got used globally. Things changed when Britishers conquered India and started to divide and rule. This way slowly the wealth has been eroded and finally when India got its freedom, in terms of growth Britishers made big changes within the country which is done for their trade needs and money value has gone to nothing from the top. Gold/silver and other valuable metals were initially given value by the kings that ruled the different parts of India.

[LeGaulois]

Hi i'm monolicaคาสิโน
A quick history of currencies and paper money shows that money began as a deposit of a certain value of gold/silver and then turned into a representation of the promises of those who issue it.
Looking at the US dollar, it has lost more than 90% of its value, making all paper currencies a bad example of a "store of value." "I do not want to mention the scenario that happened in the state of Venezuela or Germany after the war."sagame

Currencies were a store of value earlier when the world economy was following Gold standard! With the abolishment of Gold standard, currencies are not anymore a store of value. It can be better described as a promissory note where the issuing authority takes care of the value and it is now backed by the debt papers! No wonder why it has started loosing its purchasing power!

But the Swiss franc and the Norwegian krone, for exemple, are (still) often considered as store of values.
We have even seen a rise recently (like gold did), probably caused by central banks' monetary policies and negative interest rates. IIRC the swiss bank had to intervene because their currency was going up too much (or too quickly)
The Yen is too used as a SOV sometimes, due to capital being repatriated to Japan during politic and economic conflicts.

[sana54210]

Yep, currencies can be a store of value. Where I live, the US dollar is not our currency but there are some people who are always buying the US dollar as a store of value, and not only USD, including Euros and Pounds Sterling. So, anything can be a store of value and these people are using these currencies as a store of value because they believe that they are stronger than our country's currency, so that makes it a perfect choice.

I used to do that and later stopped before discovering Bitcoin, and I also make use of Gold to store values. First time I started storing my money with gold was around the time I discovered BitGold, an online platform where you can buy gold and store in your wallet and also sell it whenever you want. After they merged with one other company, that's when I stopped investing in gold. The app made it easier. Now I'm into Bitcoin and Ethereum, but I will still look for a means to invest in Gold because of its stability.