Store of Value
The concept of a “store of value” refers to goods that are capable of retaining or increasing their worth over time rather than declining in value. This term is used to describe a mechanism that enables individuals to preserve their wealth without experiencing any loss in value over time.
It is one of the three functions of money that Bitcoin Magazine is exploring; the other two are medium of exchange and unit of account.
What is a Store of Value
A store of value is an asset, a currency or a commodity that can be trusted to hold its value over time; ideally, it doesn’t bear much risk. Traditionally, people who are less tolerant to risk will invest in a store of value with an enduring lifespan, a stable demand and low volatility.
Fiat currencies are weak stores of value since they depreciate over time due to inflation. Commodities like bitcoin, gold and a collection of other monetary metals have good store-of-value attributes because they are relatively limited i
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