{"id":3818,"date":"2023-10-18T16:10:04","date_gmt":"2023-10-18T16:10:04","guid":{"rendered":"https:\/\/coinrabbit.io\/blog\/?p=3818"},"modified":"2023-10-20T11:38:22","modified_gmt":"2023-10-20T11:38:22","slug":"what-is-a-store-of-value-the-complete-guide","status":"publish","type":"post","link":"https:\/\/coinrabbit.io\/blog\/what-is-a-store-of-value-the-complete-guide\/","title":{"rendered":"What is a Store of Value: The Complete Guide"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p>It is likely that you have heard stories about people burying gold on their property or hiding bonds in their homes to keep their assets safe. These are funny anecdotes, but they also illustrate how to store value. A secure financial plan requires a store of value.<\/p>\n\n\n\n<p>As a store of value, money keeps your assets from depreciating. It\u2019s a great way to minimize loss and maintain value long-term. But not all forms of money are good stores of value. In order to determine which currency is best for this, it is important to define what a store of value is.<\/p>\n\n\n\t\t\t\t<div class=\"wp-block-uagb-table-of-contents uagb-toc__align-left uagb-toc__columns-1  uagb-block-882f9154      \"\n\t\t\t\t\tdata-scroll= \"1\"\n\t\t\t\t\tdata-offset= \"30\"\n\t\t\t\t\tstyle=\"\"\n\t\t\t\t>\n\t\t\t\t<div class=\"uagb-toc__wrap\">\n\t\t\t\t\t\t<div class=\"uagb-toc__title\">\n\t\t\t\t\t\t\tTable Of Contents\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"uagb-toc__list-wrap \">\n\t\t\t\t\t\t<ol class=\"uagb-toc__list\"><li class=\"uagb-toc__list\"><a href=\"#qualities-of-a-store-of-value\" class=\"uagb-toc-link__trigger\">Qualities of a Store of Value<\/a><ul class=\"uagb-toc__list\"><li class=\"uagb-toc__list\"><a href=\"#1-enduring-nature\" class=\"uagb-toc-link__trigger\">1. Enduring Nature<\/a><li class=\"uagb-toc__list\"><li class=\"uagb-toc__list\"><a href=\"#2-stability-and-durability\" class=\"uagb-toc-link__trigger\">2. Stability and durability<\/a><li class=\"uagb-toc__list\"><li class=\"uagb-toc__list\"><a href=\"#3-immutability\" class=\"uagb-toc-link__trigger\">3. Immutability<\/a><li class=\"uagb-toc__list\"><li class=\"uagb-toc__list\"><a href=\"#4-scarcity\" class=\"uagb-toc-link__trigger\">4. Scarcity<\/a><\/li><\/ul><\/li><li class=\"uagb-toc__list\"><a href=\"#store-of-value-example\" class=\"uagb-toc-link__trigger\">Store of value example<\/a><li class=\"uagb-toc__list\"><a href=\"#the-new-digital-store-of-value-bitcoin\" class=\"uagb-toc-link__trigger\">The new digital store of value: Bitcoin<\/a><li class=\"uagb-toc__list\"><a href=\"#money-is-a-store-of-value-isnt-it\" class=\"uagb-toc-link__trigger\">Money is a store of value, isn&#039;t it?<\/a><li class=\"uagb-toc__list\"><a href=\"#good-vs-bad-stores-of-value\" class=\"uagb-toc-link__trigger\">Good vs. bad stores of value\u00a0<\/a><li class=\"uagb-toc__list\"><a href=\"#conclusion\" class=\"uagb-toc-link__trigger\">Conclusion<\/a><\/ul><\/ol>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\n\n<h2 class=\"wp-block-heading\" id=\"qualities-of-a-store-of-value\">Qualities of a Store of Value<\/h2>\n\n\n<p>These are the most important <a href=\"https:\/\/academy.binance.com\/en\/glossary\/store-of-value\">qualities<\/a> of a store of value: the ability to maintain or increase in value over time.<\/p>\n\n\n<h3 class=\"wp-block-heading\" id=\"1-enduring-nature\">1. Enduring Nature<\/h3>\n\n\n<p>It is crucial that any assets, commodities, or currencies remain valuable for many years to come. For example, most household appliances depreciate quickly within five to eight years, which makes them an unfavorable option for storing value.<\/p>\n\n\n<h3 class=\"wp-block-heading\" id=\"2-stability-and-durability\">2. Stability and durability<\/h3>\n\n\n<p>When something expires or experiences price volatility, it is not a good store of value. Likewise, if it is prone to wear and tear, it won&#8217;t retain value.<\/p>\n\n\n<h3 class=\"wp-block-heading\" id=\"3-immutability\">3. Immutability<\/h3>\n\n\n<p>Your store of value must also be functionally retrievable or tradeable at any time. This also means that transactions cannot be reversed.<\/p>\n\n\n<h3 class=\"wp-block-heading\" id=\"4-scarcity\">4. Scarcity<\/h3>\n\n\n<p>Most assets in stores of value are also finite in supply. Their rarity enhances their value and makes it more likely that demand will exist for them in the future. Stores of value are especially useful during times of economic distress &#8211; as they can replace your fiat currency in transactions &#8211; as well as in emergency situations.<\/p>\n\n\n<h2 class=\"wp-block-heading\" id=\"store-of-value-example\">Store of value example<\/h2>\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" width=\"512\" height=\"512\" src=\"https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/Treasure-hunter-with-ancient-chest.png\" alt=\"\" class=\"wp-image-3822\" style=\"aspect-ratio:1;width:231px;height:auto\" srcset=\"https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/Treasure-hunter-with-ancient-chest.png 512w, https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/Treasure-hunter-with-ancient-chest-300x300.png 300w, https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/Treasure-hunter-with-ancient-chest-150x150.png 150w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/figure>\n\n\n\n<p>In cultures all over the world, gold jewelry is given as gifts at significant life events or passed down in the family. This is seen in cultures where precious metals and stones are used as a store of value. It is easy to store gold in the home or bank, it does not wear, and it is often accepted in exchanges. People living in countries with volatile or weak currencies may find it particularly useful to have gold stores of value.<\/p>\n\n\n\n<p>Until 1971, the U.S. dollar was on a gold standard, which means that gold has universal purchasing power.<\/p>\n\n\n\n<p>Market sentiments towards gold (and most other precious metals and gems, like diamonds) are also extremely positive. Gold is so widely used as a store of value that it has become a historical standard.<\/p>\n\n\n<h2 class=\"wp-block-heading\" id=\"the-new-digital-store-of-value-bitcoin\">The new digital store of value: Bitcoin<\/h2>\n\n\n<p>Bitcoin is becoming a modern store of value with the use of technology. The decentralized crypto operates on a blockchain, a system of thousands of servers.<\/p>\n\n\n\n<p>The peer-to-peer network is completely transparent and efficient, but users can remain anonymous. Bitcoin can be used for almost any transaction, is stored safely in online servers, won&#8217;t degrade with time, and is limited in supply. While the value of Bitcoin may fluctuate, its useful properties make it likely to only grow in value and use over time.<\/p>\n\n\n<h2 class=\"wp-block-heading\" id=\"money-is-a-store-of-value-isnt-it\">Money is a store of value, isn&#8217;t it?<\/h2>\n\n\n<p>Fiat currency &#8211; or money &#8211; is commonly considered a store of value since its long-term value is crucial to a stable economy. If a nation&#8217;s currency loses value quickly, it\u2019s a sign that they are suffering an economic crisis. Still, this doesn&#8217;t make money a good store of value. The usefulness of money can be severely hindered by depreciation in many scenarios.<\/p>\n\n\n\n<p>It is possible for money to lose purchasing power due to inflation, war, or economic recession. Additionally, even in a relatively stable economy, money is extremely likely to lose its value over time. Ten U.S. dollars in 1950 would have been worth $128 in 2023, for instance! It is also dependent on the state of global economic affairs how your money converts into other currencies.<\/p>\n\n\n\n<p>It is possible to convert your gold into any currency because it is accepted throughout the world. However, you cannot use your U.S. dollars to buy things in Europe.<\/p>\n\n\n<h2 class=\"wp-block-heading\" id=\"good-vs-bad-stores-of-valuenbsp\">Good vs. bad stores of value <\/h2>\n\n\n<p>If money isn\u2019t a good store of value, what assets can you use instead? Here\u2019s a simple chart explaining why certain stores of value are better than others.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Good stores of value<\/td><td>Bad stores of value<\/td><\/tr><tr><td><strong>Precious metals<\/strong> such as gold, platinum, and<br>silver are great stores of value. They hold value due to their scarcity and have multiple industrial uses. Storing large quantities safely is expensive, but their value is likely to appreciate.<\/td><td><strong>Perishable items<\/strong> like food, event tickets, or<br>makeup products all lose value after expiry. Other<br>things like equipment, machinery and buildings<br>can wear over time and become unusable.<\/td><\/tr><tr><td><strong>Gemstones<\/strong> like diamonds, sapphires, emeralds and more are also good stores of value for similar<br>reasons. As they\u2019re also smaller, it\u2019s easier to store them in larger quantities.<\/td><td><strong>Delicate items<\/strong> like antique ornaments, vintage clothes, or fine wines are easily breakable. You may lose all your value if your commodities are damaged during handling.<\/td><\/tr><tr><td>Some <strong>cryptocurrencies<\/strong> like Bitcoin possess the<br>qualities of a good store of value. Bitcoin has a<br>limited supply, is useful for immutable<br>transactions, and you can transact it from<br>anywhere in the world. It\u2019s also safely stored on a<br>decentralized blockchain &#8211; unless the entire system<br>is destroyed, your crypto is safe.<\/td><td><strong>Fiat currencies<\/strong> slowly lose purchasing power due<br>to inflation. They also have no commodities<br>backing their value. If people lose confidence in a<br>nation\u2019s money, its value will immediately drop.<\/td><\/tr><tr><td><strong>Real estate<\/strong> often appreciates or keeps value, other<br>than in certain situations (like war). Real estate<br>includes land and buildings and can offer uses<br>outside of selling, like renting or construction.<br>However, real estate lacks the liquidity that other<br>commodities have.<\/td><td>Certain<strong> digital assets <\/strong>like copyright, software,<br>and patents can depreciate if they become<br>obsolete.<\/td><\/tr><tr><td><strong>Bonds<\/strong> are proven good long-term investments.<br>They\u2019re also useful in diversifying your financial<br>portfolio.<\/td><td><strong>Risky assets<\/strong> like speculative market stocks<br>subject to price volatility are not good stores of<br>value.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n<h2 class=\"wp-block-heading\" id=\"conclusion\">Conclusion<\/h2>\n\n\n<p>You can create and maintain a store of value if you use the right assets. To keep the economy prosperous, money is needed as a store of value. You can prepare yourself financially for any situation by investing in a personal store of value. It will protect your finances during times of crisis and facilitate your future trades.<\/p>\n\n\n\n<p>If you want to create a long-lasting store of value without spending any money, use assets that will not depreciate over time. You can even invest in unique artworks or digital assets like Bitcoin. <\/p>\n\n\n\n<p>What is more interesting \u2013 when you deal with such crypto currencies like Bitcoin \u2013 you don&#8217;t have to sell them if you need money immediately. You can get a <a href=\"https:\/\/coinrabbit.io\/loans\/usdt\/\">USDT loan<\/a> against you <a href=\"https:\/\/coinrabbit.io\/loans\/btc\/\">Bitcoin<\/a>, Ethereum or any other currency. <\/p>\n\n\n\n<div class=\"wp-block-uagb-marketing-button uagb-marketing-btn__align-center uagb-marketing-btn__align-text-center uagb-marketing-btn__icon-after uagb-block-050de96d wp-block-button\"><a href=\"https:\/\/coinrabbit.io\/loans\/?referral=blog\" class=\"uagb-marketing-btn__link wp-block-button__link\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"uagb-marketing-btn__title\">Get your Crypto Loan<\/span><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\"><path d=\"M384 320c-17.67 0-32 14.33-32 32v96H64V160h96c17.67 0 32-14.32 32-32s-14.33-32-32-32L64 96c-35.35 0-64 28.65-64 64V448c0 35.34 28.65 64 64 64h288c35.35 0 64-28.66 64-64v-96C416 334.3 401.7 320 384 320zM488 0H352c-12.94 0-24.62 7.797-29.56 19.75c-4.969 11.97-2.219 25.72 6.938 34.88L370.8 96L169.4 297.4c-12.5 12.5-12.5 32.75 0 45.25C175.6 348.9 183.8 352 192 352s16.38-3.125 22.62-9.375L416 141.3l41.38 41.38c9.156 9.141 22.88 11.84 34.88 6.938C504.2 184.6 512 172.9 512 160V24C512 10.74 501.3 0 488 0z\"><\/path><\/svg><p class=\"uagb-marketing-btn__prefix\">Get maximum profit from your crypto with CoinRabbit<\/p><\/a><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p><em>Disclaimer: You should not interpret the content as investment advice, nor does it constitute an offer to sell or recommend any investment product. It is made available only for information and\/or educational purposes. If you wish to rely on any information in this article, you should seek independent investment advice from a professional or independently research and verify it.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is likely that you have heard stories about people burying gold on their property&hellip;<\/p>\n","protected":false},"author":13,"featured_media":3825,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","ub_ctt_via":"","_lmt_disableupdate":"","_lmt_disable":"","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[268],"tags":[14,511],"ppma_author":[654],"class_list":["post-3818","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized-en","tag-crypto","tag-gold","author-olga"],"aioseo_notices":[],"featured_image_src":"https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/twitterdiversified-3.png","author_info":{"display_name":"Olga Davis","author_link":"https:\/\/coinrabbit.io\/blog\/author\/olga\/"},"modified_by":"Diana Kelley","uagb_featured_image_src":{"full":["https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/twitterdiversified-3.png",2400,1256,false],"thumbnail":["https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/twitterdiversified-3-150x150.png",150,150,true],"medium":["https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/twitterdiversified-3-300x157.png",300,157,true],"medium_large":["https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/twitterdiversified-3-768x402.png",768,402,true],"large":["https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/twitterdiversified-3-1024x536.png",1024,536,true],"1536x1536":["https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/twitterdiversified-3-1536x804.png",1536,804,true],"2048x2048":["https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/twitterdiversified-3-2048x1072.png",2048,1072,true],"wptouch-new-thumbnail":["https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/twitterdiversified-3.png",144,75,false]},"uagb_author_info":{"display_name":"Olga Davis","author_link":"https:\/\/coinrabbit.io\/blog\/author\/olga\/"},"uagb_comment_info":5,"uagb_excerpt":"It is likely that you have heard stories about people burying gold on their property&hellip;","blog_post_layout_featured_media_urls":{"thumbnail":["https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/twitterdiversified-3-150x150.png",150,150,true],"full":["https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2023\/10\/twitterdiversified-3.png",2400,1256,false]},"categories_names":{"268":{"name":"General","link":"https:\/\/coinrabbit.io\/blog\/category\/uncategorized-en\/"}},"tags_names":{"14":{"name":"crypto","link":"https:\/\/coinrabbit.io\/blog\/tag\/crypto\/"},"511":{"name":"gold","link":"https:\/\/coinrabbit.io\/blog\/tag\/gold\/"}},"comments_number":"0","authors":[{"term_id":654,"user_id":13,"is_guest":0,"slug":"olga","display_name":"Olga Davis","avatar_url":{"url":"https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2025\/11\/olga.jpeg","url2x":"https:\/\/coinrabbit.io\/blog\/wp-content\/uploads\/2025\/11\/olga.jpeg"},"author_category":"3","first_name":"Olga","last_name":"Davis","user_url":"https:\/\/medium.com\/@olga_davis","job_title":"","description":"Nice to e-meet you!\r\n\r\nI\u2019m passionate about Web3 and its power to reshape the digital world with transparency and true freedom. The future is decentralized, and I\u2019m here to help you navigate this exciting new frontier."}],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/coinrabbit.io\/blog\/wp-json\/wp\/v2\/posts\/3818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinrabbit.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinrabbit.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinrabbit.io\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/coinrabbit.io\/blog\/wp-json\/wp\/v2\/comments?post=3818"}],"version-history":[{"count":3,"href":"https:\/\/coinrabbit.io\/blog\/wp-json\/wp\/v2\/posts\/3818\/revisions"}],"predecessor-version":[{"id":3830,"href":"https:\/\/coinrabbit.io\/blog\/wp-json\/wp\/v2\/posts\/3818\/revisions\/3830"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinrabbit.io\/blog\/wp-json\/wp\/v2\/media\/3825"}],"wp:attachment":[{"href":"https:\/\/coinrabbit.io\/blog\/wp-json\/wp\/v2\/media?parent=3818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinrabbit.io\/blog\/wp-json\/wp\/v2\/categories?post=3818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinrabbit.io\/blog\/wp-json\/wp\/v2\/tags?post=3818"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/coinrabbit.io\/blog\/wp-json\/wp\/v2\/ppma_author?post=3818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}