Definition
A store of value is any asset that can be saved, retrieved, and exchanged later while retaining its purchasing power. It is one of the three classical functions of money, alongside being a medium of exchange (a thing accepted in trade) and a unit of account (a common yardstick for prices). To serve well as a store of value, an asset should resist losing purchasing power to inflation, physical decay, or oversupply.
What makes a good store of value
Historically, assets like gold, real estate, and stable national currencies have functioned as stores of value, each with trade-offs in portability, divisibility, and supply growth. Durability and scarcity matter most: a perishable good is a poor store of value, and so is an asset whose supply can be expanded cheaply, because new supply dilutes existing holders. This connects directly to the idea of sound money and to the stock-to-flow ratio as a hardness measure.
Bitcoin as a candidate store of value
Bitcoin is often discussed as an emerging store of value because of its fixed 21-million supply cap and predictable issuance. Proponents emphasize its portability and divisibility; skeptics point to its price volatility, which can undermine short-term value preservation. Both observations can be true at once a store of value is judged over long horizons, while volatility is a short-horizon concern. This entry takes no view on Bitcoin's future price.
The three monetary functions reinforce one another, but an asset can serve one role well before the others. For related concepts, see fiat currency and how time preference shapes the decision to save rather than spend.
In Simple Terms
A store of value is any asset that can be saved, retrieved, and exchanged later while retaining its purchasing power. It is one of the…