Store of Value
A store of value is an asset that can be saved, retrieved, and then spent at a later date while maintaining its original value and utility in a predictable fashion.
Simply stated, store of value assets have a similar or increased value in the future than what they currently have.
- Gold and other precious metals
- Fine Wines
- Real Estate
- Fine Art
Non Examples include:
- Fiat Currencies
- Perishable goods
*Bitcoin lies in an interesting place when it comes to being a store of value. On the one hand, Bitcoin has increased its value over time consistently since its conception in 2009. It is the best returning asset of the 2010 decade. On the other hand, Bitcoin exhibits extreme volatility that has the potential to significantly decrease value in the short term. However, one look at the chart below should dismantle any doubt about whether or not Bitcoin acts is a store of value.