Money as a store of value...

[aylabadia05]

[snip]

• As a means of transferring wealth
• As a driver of economic activity
• As a means of payment
• As a means of hoarding wealth

[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.
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.

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[Hamza2424]

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).

[Hispo]

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.

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.

[boyptc]

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.

[fuer44]

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.

[fuer44]

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.

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.

[FrozenBit]

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.

[EarnOnVictor]

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.

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.

[Uruhara]

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.

[MoonOfLife]

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.

[Yatsan]

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.

[Uruhara]

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.

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.

[Swordsoffreedom]

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.

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.

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.

[fuer44]

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.

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.

[19Nov16]

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.

[GeorgeJohn]

Before there was money, in ancient times they still used the barter system, whatever the barter was, it depended on the agreement of both parties. But the barter system cann't be declared a store of value, because it has no future value and only has value in the past. So that currency emerged as a tools of payment, a store of value, and as a medium for pricing an item.

What you are elaborating on, is a trade by barter, and during ancient time they used trade by barter for exchange of goods and services,  that doesn't mean that what they exchange at that point is a store of value, what they actually do is to exchange to what they needed at point in time.
When you said a store of value, the things which I believe that falls in between that should be future things that in fifty years coming it will still be valuable, and such things may classifies as crude oil and Gold. The two things mentioned above is what we can see as store of value  because the value doesn't depreciate even though it get it's been reframe,  the aspect of money, it get loss of value, it depreciated when it get stock for long periods, either they will be inflation or they will be change currency, so if you stock money physically not in bank and redesign of such currency happens, its obvious that you have lost the currency and it become valueless. So in summary store of value from my observation is crude oil and gold.

[huu78]

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.

[misterrtwisterr]

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.

[uchegod-21]

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.

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

[Phu Juck]

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.