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Functions of money
Functions of money
Published: 2016/06/20
Channel: Khan Academy
Utility vs Store of Value
Utility vs Store of Value
Published: 2014/02/28
Channel: belangp
Money #3 - Store of Value
Money #3 - Store of Value
Published: 2011/06/18
Channel: Ecolanguage
What does store of value mean?
What does store of value mean?
Published: 2015/06/28
Channel: What Does That Mean?
Money as a store of value
Money as a store of value
Published: 2018/04/19
Channel: G Conomics
Money as a Store of Value
Money as a Store of Value
Published: 2017/03/05
Channel: orang ramai
Why Money is not a Store of Value
Why Money is not a Store of Value
Published: 2018/06/10
Channel: The Value of Truth
Four functions of money
Four functions of money
Published: 2016/05/15
Channel: EnhanceTuition
GOLD & SILVER: High Quality Store Of Value, Fragile Nature Of Currencies
GOLD & SILVER: High Quality Store Of Value, Fragile Nature Of Currencies
Published: 2018/04/10
Channel: SRSrocco Report
Money and Finance: Crash Course Economics #11
Money and Finance: Crash Course Economics #11
Published: 2015/10/14
Channel: CrashCourse
Why Gold is the Store House of Wealth and Value.
Why Gold is the Store House of Wealth and Value.
Published: 2012/11/26
Channel: APMEX
Silver- Not Always a Store of Value
Silver- Not Always a Store of Value
Published: 2013/09/21
Channel: MomentsInTrading
Um...Are Gold/BTC Core "Stores of Value" in a Sound Currency System? (Bix Weir)
Um...Are Gold/BTC Core "Stores of Value" in a Sound Currency System? (Bix Weir)
Published: 2017/11/30
Channel: RoadtoRoota
Gold pays no interest, has no use and no fundamental value.  What is your opinion?
Gold pays no interest, has no use and no fundamental value. What is your opinion?
Published: 2015/06/21
Channel: UKspreadbetting
What is the store of value network effect in Bitcoin?
What is the store of value network effect in Bitcoin?
Published: 2018/07/10
Channel: Off Chain with Jimmy Song
Are Bitcoin and Cryptocurrencies a Store of Value in 2018
Are Bitcoin and Cryptocurrencies a Store of Value in 2018
Published: 2018/06/27
Channel: Peter Leeds
GOLD, Understanding Gold as a store of value
GOLD, Understanding Gold as a store of value
Published: 2009/03/27
Channel: VisionVictory
Best Store of Value For Cryptocurrency? Ethereum - Bitcoin - Litecoin - Bitcoin Cash
Best Store of Value For Cryptocurrency? Ethereum - Bitcoin - Litecoin - Bitcoin Cash
Published: 2018/01/13
Channel: Altcoin Buzz
Bitcoin Q&A: Price volatility and store-of-value
Bitcoin Q&A: Price volatility and store-of-value
Published: 2018/06/05
Channel: aantonop
Utility vs Store of Value
Utility vs Store of Value
Published: 2014/08/14
Channel: FinanceAndLiberty.com
Raoul Pal: Bitcoin Is Mania, Not a Store of Value
Raoul Pal: Bitcoin Is Mania, Not a Store of Value
Published: 2017/06/02
Channel: Mauldin Economics
Goldman Sachs Lou Kerner thinks Bitcoin is a better store of value than Gold  - CNBC
Goldman Sachs Lou Kerner thinks Bitcoin is a better store of value than Gold - CNBC
Published: 2017/11/28
Channel: Subscribe Coin
Profit Token The Best Store Of Value!
Profit Token The Best Store Of Value!
Published: 2018/04/16
Channel: PROFIT TOKEN
Cryptocurrency Market Update - Bitcoin Vs Gold as Store of Value
Cryptocurrency Market Update - Bitcoin Vs Gold as Store of Value
Published: 2018/02/14
Channel: Altcoin Buzz
Stellar lumen XLM high valuation requires store of value.  As utility token only it is over valued.
Stellar lumen XLM high valuation requires store of value. As utility token only it is over valued.
Published: 2018/03/26
Channel: Dave Levine Dot Com
RIPPLE IS NOT A STORE OF VALUE!
RIPPLE IS NOT A STORE OF VALUE!
Published: 2018/02/04
Channel: Patrick Wieland
Should Bitcoin Just Be A Store Of Value?
Should Bitcoin Just Be A Store Of Value?
Published: 2017/07/01
Channel: AVI
Gold not a store of value & BTC either (Commentary)
Gold not a store of value & BTC either (Commentary)
Published: 2017/08/23
Channel: dobe4ever
Top 5 Crypto Stores of Value. Which is the Best? Korean Ban!?
Top 5 Crypto Stores of Value. Which is the Best? Korean Ban!?
Published: 2018/01/11
Channel: Crypto Daily
A Real Discussion on Currencies as  Store of Value
A Real Discussion on Currencies as Store of Value
Published: 2015/11/14
Channel: Reggie Middleton
Using Bitcoin as a Store of Value
Using Bitcoin as a Store of Value
Published: 2017/05/22
Channel: Ian Balina
Bitcoin As Store Of Value, Medium And Eventual Downfall?
Bitcoin As Store Of Value, Medium And Eventual Downfall?
Published: 2017/12/24
Channel: Jefferson Kim
LITECOIN, my store of value!
LITECOIN, my store of value!
Published: 2018/03/08
Channel: Modern Guru
Kenneth Ameduri On Bitcoin: The Decentralised Store Of Value
Kenneth Ameduri On Bitcoin: The Decentralised Store Of Value
Published: 2017/10/31
Channel: Crush The Street
WHY PRECIOUS METALS ARE THE BETTER LONG TERM STORE OF VALUE OVER BITCOIN
WHY PRECIOUS METALS ARE THE BETTER LONG TERM STORE OF VALUE OVER BITCOIN
Published: 2017/10/22
Channel: Special Reports
Stellar (XLM) vs Bitcoin (BTC) vs Ripple (XRP).  Stellar and Bitcoin can both be a store of value.
Stellar (XLM) vs Bitcoin (BTC) vs Ripple (XRP). Stellar and Bitcoin can both be a store of value.
Published: 2018/07/21
Channel: Dave Levine Dot Com
NOT A STORE OF VALUE
NOT A STORE OF VALUE
Published: 2016/02/04
Channel: Nolen Harter
Functions of money
Functions of money
Published: 2017/11/07
Channel: Economics Guider
BITCOIN ~ BANKS ARE SCARED ~ STORE OF VALUE & GOLD/SILVER
BITCOIN ~ BANKS ARE SCARED ~ STORE OF VALUE & GOLD/SILVER
Published: 2017/09/27
Channel: Crypto Spark
Bitcoin as a Store of Value
Bitcoin as a Store of Value
Published: 2017/02/24
Channel: Spencer Evans
Adeyemi On Crypto Currency As Store Of Value |Business Incorporated|
Adeyemi On Crypto Currency As Store Of Value |Business Incorporated|
Published: 2018/06/13
Channel: Channels Television
Bitcoin Joins Gold as Store of Value
Bitcoin Joins Gold as Store of Value
Published: 2013/11/24
Channel: Bit Coin
Bitcoin is not a store of value like gold & silver but medium of exchange
Bitcoin is not a store of value like gold & silver but medium of exchange
Published: 2011/06/12
Channel: Alexiscom1
GOLD’S REMARKABLE STORE OF VALUE SHOWN IN CHARTS
GOLD’S REMARKABLE STORE OF VALUE SHOWN IN CHARTS
Published: 2017/06/19
Channel: Smaul gld
*Ulitimate store of value *Maidsafe *Impossible to keep up with bitcoin
*Ulitimate store of value *Maidsafe *Impossible to keep up with bitcoin
Published: 2017/01/05
Channel: Bitcoin Globe
Why Gold Metal is the Best Store of Value?
Why Gold Metal is the Best Store of Value?
Published: 2018/07/20
Channel: LBMA GOLD TRADING LLC
The Dollar As A Store of Value is Being Destroyed
The Dollar As A Store of Value is Being Destroyed
Published: 2011/06/06
Channel: Daily Patriot News
16-year-olds: Use Bitcoin as a store of value for future purchases instead of buying a car today
16-year-olds: Use Bitcoin as a store of value for future purchases instead of buying a car today
Published: 2016/03/15
Channel: BitcoinMeister
Should Bitcoin Be A Store Of Value, Cash Or Both? Don
Should Bitcoin Be A Store Of Value, Cash Or Both? Don't Be A Pawn!
Published: 2017/11/14
Channel: Yes4Motivation
Andreas Antonopolous on using Bitcoin as a store of value
Andreas Antonopolous on using Bitcoin as a store of value
Published: 2017/07/28
Channel: The Coin Jungle
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WIKIPEDIA ARTICLE

From Wikipedia, the free encyclopedia
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A store of value is the function of an asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved.[citation needed] More generally, a store of value is anything that retains purchasing power into the future.

The most common store of value in modern times has been money, currency, or a commodity like a precious metal or financial capital. The point of any store of value is risk management due to a stable demand for the underlying asset. Money is one of the best stores of value because of its liquidity, that is, it can easily be exchanged for other goods and services.[1] An individual's wealth is the total of all stores of value including both monetary and nonmonetary assets.[2]

Money as a store of value[edit]

Various bills and coins

Monetary economics is the branch of economics which analyses the functions of money. Storage of value is one of the three generally accepted functions of money.[2] The other functions are the medium of exchange, which is used as an intermediary to avoid the inconveniences of the coincidence of wants, and the unit of account, which allows the value of various goods, services, assets and liabilities to be rendered in multiples of the same unit. Money is well-suited to storing value because of its purchasing power.[1] It is also useful because of its durability.[3]

Because of its function as a store of value, large quantities of money are hoarded.[4] Money's usefulness as a store of value declines if there are significant changes in the general level of prices.[5] So if inflation rises, purchasing power declines and a cost is placed on those holding money.[6]

Workers who are paid in a currency which is experiencing high-inflation will prefer to spend their income quickly instead of saving it.[3] When a currency loses its store of value, or more accurately when a currency is perceived to lose its future purchasing power, it fails to function as money. This causes people to use currencies from other countries as a substitute.[3]

According to the Cambridge cash-balance theory, which is represented by the Cambridge equation, money's ability to store value is more important than its function as a medium of exchange.[7] Cambridge claims that the demand for money is derived from its ability to store value. This is contrary to Fisher economists' belief that demand arises because money is needed for exchange.[8]

Other stores of value[edit]

Polish National Government bond, 1863
Commodities such as gold are good stores of value

Examples for stores of value other than money are:

While these items may be inconvenient to trade daily or store, and may vary in value quite significantly, they rarely lose all value. It need not be a capital asset at all, merely have economic value that is not known to disappear even in the worst situation. The disadvantage for land, houses and property as a store for value is that it may take time to find a buyer for those assets.[6] In principle, this could be true of any industrial commodity, but gold and precious metals are generally favored, because of their demand and rarity in nature, which reduces the risk of devaluation associated with increased production and supply.

Speculative investments[edit]

Speculative instruments are not stores of value. They may "have value" when purchased, but are not "a reasonably stable store of future value". As mentioned above, the key to defining if an asset can be considered a store of value, is that it can predictably retain purchasing power into the future.

At various times throughout history, people and nations have famously made the mistake of believing that they could "store value" in speculative instruments, misunderstanding that ones personal choice to invest in a speculative asset does not automatically convert that asset into a proper and predictable store of value.

Examples of assets that are not traditionally considered stores of value:

See also[edit]

References[edit]

  1. ^ a b Gwartney, James; Richard Stroup; Russell Sobel; David Macpherson (2008). Economics: Private and Public Choice. Cengage Learning. p. 264. ISBN 0324580185. Retrieved 2 January 2017. 
  2. ^ a b Mankiw, N. Gregory (2012). Essentials of Economics. Cengage Learning. p. 437. ISBN 1133418945. Retrieved 2 January 2017. 
  3. ^ a b c Boyes, William; Michael Melvin (2011). Fundamentals of Economics. Cengage Learning. p. 295. ISBN 1133172997. Retrieved 3 January 2017. 
  4. ^ Einzig, Paul (2014). Primitive Money: In its Ethnological, Historical and Economic Aspects, Edition 2. Elsevier. p. 425. ISBN 9781483157153. Retrieved 3 January 2017. 
  5. ^ Currie, David A. (1981). Macro Economic Analysis. Nirali Prakashan. p. 2.14. ISBN 9380064195. Retrieved 3 January 2017. 
  6. ^ a b Gwartney, James; Richard Stroup; Russell Sobel; David Macpherson (2008). Macroeconomics: Public and Private Choice. Cengage Learning. p. 264. ISBN 0324580193. Retrieved 3 January 2017. 
  7. ^ Economic Concepts and Methods. FK Publications. p. 297. ISBN 818859718X. Retrieved 4 January 2017. 
  8. ^ Reddy, R. Jayaprakash (2004). Advanced Monitory Theory & Policies. APH Publishing. p. 50. ISBN 8176486124. Retrieved 4 January 2017. 

External links[edit]

  • Wiens, Elmer G. (2005). "Linguistic and Commodity Exchanges". First Nations Studies. Examines the structural differences between barter and monetary commodity exchanges and oral and written linguistic exchanges 

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