web3/concepts/store-of-value.md

Store of Value

A store of value is an asset that maintains purchasing power into the future and can be saved, retrieved and exchanged at a later time, and be predictably useful when required.

A store of value should have a low-variance in its market value on long time scales. Hypervolatile assets do not make for good stores of value.

References

1. Taleb, Nassim Nicholas. 2021. ‘Bitcoin, Currencies, and Fragility’. ArXiv:2106.14204 [Physics, q-Fin], July. http://arxiv.org/abs/2106.14204.
2. Cembalest, M. (2022). The Maltese Falcoin: On Cryptocurrencies and Blockchains (p. 31).
3. Wang, G., Tang, Y., Xie, C., & Chen, S. (2019). Is bitcoin a safe haven or a hedging asset? Evidence from China. Journal of Management Science and Engineering, 4(3), 173–188. https://doi.org/10.1016/j.jmse.2019.09.001