What is Store of value

Store of value assets are assets whose value is conserved over time. In other words, their value stays the same or even grows, but is not depreciated with time. A good example is gold.

Sometimes, store of value could refer not only to an asset’s price, but also to its liquidity and purchasing power. For example, although the majority of fiat currencies partially lose their values over time due to inflation, they are still regarded by some as a store of value. This is because fiat money is liquid.

However, this definition is debatable, as the value of money is somewhat stable only in some countries with strong economies. Hyperinflation could lead to a fiat currency rapidly losing its value in a short period of time, and as result, its purchasing power quickly drops significantly.