is monetary "store of value" even possible?
like if the economy crashes and stuff stops being produced, then no matter how much "money" you have (in whatever form—fiat, gold, crypto, w/e) you won't be able to buy as much stuff with it, right?
Conversation
like if I have $100 and I want to spend it next year, there's no "safe" place to put it such that I can get the same stuff then that I could get now
because the supply side could crash and then even if my $100 is "worth" the same, I can't afford the same things anymore
I think?
7
31
Replying to
yep. you have no guarantees about what $100 will be able to buy if the world goes to shit. the value of a dollar depends on the stability of a bunch of institutions, e.g. the US government. food is still food and water is still water under a much wider range of conditions tho
the problem with stockpiling stuff like food or water ofc is that if’s harder to store and transport, and food in particular can go bad. money doesn’t go bad and is easy to store and transport (esp electronically). but instead we have to put in work maintaining civilization
1
3
Yep, "store of value" is relative to all comparable potential stores.
Money is small and abstract and doesn't rot, and therefore *relatively* stable if the institutions continue.