Store of Value

The ability of an asset to avoid depreciation over an extended period of time is referred to as a store of value. As a result, for an item to qualify as a store of value, its worth must either be fixed or grow over time, never declining.

A good store of value will allow its owner to sell or swap it at a later time for an amount equal to or greater than what they paid for it initially. Typically, the market worth or purchasing power of the asset is connected to this value (monetary value). However, it could occasionally also be connected to the asset’s liquidity.

Some examples of good stores of value are gold and silver due to their limited supply. Bitcoin is often considered a good store of value as well since it is scarce and indestructible.

Leave a Reply

Your email address will not be published. Required fields are marked *

© WazirX. All rights reserved

Scroll to Top