3 ms·
Currency should never be used as a primary value store. You should minimally hold as much currency as you need to perform the transaction. The only purpose of
by snarfy 14y ago
Currency should never be used as a primary value store. You should minimally hold as much currency as you need to perform the transaction. The only purpose of currency is to facilitate trade.
- dredmorbius 14y agoThat really depends on circumstances. If conditions favor liquidity and portability, and your currency is stable, it's a rational choice as a value store. Your _best_ value store is investments which grow in value. In a well-functioning economy, stocks, other investment vehicles, a business, agricultural or other productive land, etc. Where this isn't the case, your most valuable assets are those which can protect you, support you, and/or get you to where you will be safe. If you've got value left over at this point, a convenient store that's readily convertible at your destination is best. If things aren't horribly bad, a fiat/hard currency (even bitcoin might work), gold, or other items of high but convertible value. One argument in bitcoin's favor (and I'm not generally a fan) is that you can store immense quantities in very small physical space, or (assuming communications) transmit them elsewhere quickly. The main caveat is their utility (and value) once you're outside the trouble zone. Assuming there is an "outside the trouble zone".