What Is A Store of Value?

A store of value refers to something like an asset, commodity, or currency that you can keep, use later, and trade without it losing its worth.

Get to Know with Store of Value

A store of value could be anything valuable that holds its worth over time. It could be a currency, like dollars or euros, or something physical like gold or silver. These things usually keep their value or even increase over time, without losing their worth.

For example, gold is a great store of value because it never really loses its value. A country's money needs to be a good store of value so its economy can work smoothly.

Example From Milk

Now, let's think about something like milk. It's not a good store of value because it goes bad and becomes worthless over time. This is true for anything that loses its value as time goes on.

Scarce Material

Throughout history, many economies have used metals like gold and silver because they hold their value well, and they're easy to carry around.

The United States used to tie its money to gold until 1971, meaning you could exchange dollars for a certain amount of gold.

Different Value  Around the World

Different countries and cultures have different things they use as stores of value. In most modern economies, the local money is usually a reliable store of value in almost every situation.

Also Read

What is Total Value Locked (TVL)?

What is Fully Diluted Value (FDV)?

What Is Intrinsic Value?

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.