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That is exactly why most people no longer use gold as a store of value and are instead using currencies that are much more less volatile. Meanwhile, Bitcoin alo

That is exactly why most people no longer use gold as a store of value and are instead using currencies that are much more less volatile. Meanwhile, Bitcoin alone has an annual volatility that is about an order of magnitude larger than gold's, and it's even worse in every other crypto token. None of these things come even close to qualifying for being a store of value.

carleverett 3y ago
I think you're confusing store of value with medium of exchange... most people don't really store value in currencies long term - usually they just keep enough to pay near term bills. Stores of value are things like stocks, bonds, treasuries, real estate... and yeah commodities like gold and bitcoin. People don't care so much about volatility if they're planning to park their value there for a long time.
- mupuff1234 3y ago
  Sounds like you are confused about what and why something is a store of value. https://en.m.wikipedia.org/wiki/Store_of_value#Money_as_a_store_of_value https://en.m.wikipedia.org/wiki/Store_of_value#Money_as_a_st...
  - carleverett 3y ago
    I’m not saying fiat currency doesn’t store value… just that, of the functions of money, it’s better as a medium of exchange + unit of account where you care way more about price stability and liquidity. A good store of value is scarce, durable, transferable and divisible - and I think most people agree that you compromise scarcity to get price stability. We don’t have to take anyone’s word on this though you can just look at what endowments and wealth funds hold to see what people believe are the best stores of value: https://www.nbim.no/en/the-fund/investments/#/ https://www.nbim.no/en/the-fund/investments/#/
MassPikeMike 3y ago
"Most people no longer use gold as a store of value" may be true wherever you are, but not universally. The Times of India, for example, estimates than Indian households hold gold estimated at about 40% of annual GDP, and half of all households have purchased gold in the last two years.

carleverett 3y ago

I think you're confusing store of value with medium of exchange... most people don't really store value in currencies long term - usually they just keep enough to pay near term bills. Stores of value are things like stocks, bonds, treasuries, real estate... and yeah commodities like gold and bitcoin. People don't care so much about volatility if they're planning to park their value there for a long time.

mupuff1234 3y ago
Sounds like you are confused about what and why something is a store of value. https://en.m.wikipedia.org/wiki/Store_of_value#Money_as_a_store_of_value https://en.m.wikipedia.org/wiki/Store_of_value#Money_as_a_st...
- carleverett 3y ago
  I’m not saying fiat currency doesn’t store value… just that, of the functions of money, it’s better as a medium of exchange + unit of account where you care way more about price stability and liquidity. A good store of value is scarce, durable, transferable and divisible - and I think most people agree that you compromise scarcity to get price stability. We don’t have to take anyone’s word on this though you can just look at what endowments and wealth funds hold to see what people believe are the best stores of value: https://www.nbim.no/en/the-fund/investments/#/ https://www.nbim.no/en/the-fund/investments/#/

MassPikeMike 3y ago

"Most people no longer use gold as a store of value" may be true wherever you are, but not universally. The Times of India, for example, estimates than Indian households hold gold estimated at about 40% of annual GDP, and half of all households have purchased gold in the last two years.