Store of value
A store of value is any form of wealth which retains purchasing power without depreciating.
All edits by Form Icin
ScarcityScarcity (i.e. limited supply) is important for fiat currencies to maintain purchasing power. Their supply is not tied to or backed by any physical assets, so the rate of inflation is determined by the monetary policy of the government. If a currency loses trust as a store of value due to hyperinflation, it can wreck havoc on the economy of any region that uses that currency. Some examples of where this has occurred include Venezuela and Zimbabwe.
Scarcity (i.e. limited supply) is important for fiat currencies to maintain purchasing power. Their supply is not tied to or backed by any physical assets, so the rate of inflation is determined by the monetary policy of the government. If a currency loses trust as a store of value due to hyperinflation, it can wreck havoc on the economy of any region that uses that currency. Some examples of where this has occurred include VenezuelaVenezuela and Zimbabwe.
Scarcity (i.e. limited supply) is important for fiat currencies to maintain purchasing power. Their supply is not tied to or backed by any physical assets, so the rate of inflation is determined by the monetary policy of the government. If a currency loses trust as a store of value due to hyperinflation, it can wreck havoc on the economy of any region that uses that currency. Some examples of where this has occurred include Venezuela and ZimbabweZimbabwe.
Find more entities like Store of value
