What is Stored Value?

"Know your worth. Never settle for less than you deserve." - Anonymous

What is stored Value?

I want to talk about a very important concept that is often overlooked and even ignored; The Storage of Value. In general, the storage of value is represented by the ownership of some sort of property that has a consistent market value. Whether it’s land, the US Dollar, CrytoCurrency, Stocks or Beaver Pelts (probably should stay way from the Pelts) the market determines its value. More Market demand creates more storage of value.

Let’s look at the list and break down how these all store value.

"Know What You Own, and Know Why You Own It" - Peter Lynch

Differences in Value Storage

1. Land is a form of long term storage of value. What makes land valuable is its ability to produce more income than the market value of land. This can be done by farming or renting the land in exchange for income.

2. U.S. Dollar can be considered a short or long term storage of value. Money holds a psychological value because the United States Government gives its consent as a form of money. However, the USD has an inflation rate of 3.15% on average.

3. CryptoCurrency can be a short or long term form of storage. It also holds psychological value due to blockchain technology and its Decentralized features.

4. Stocks are a long term storage of value with hopes of growth in an investment. Stocks are not easily exchanged as CryptoCurrency and the US Dollar.

5. Beaver Pelts…. Well, if this is what you want to store your value in, go for it!

Your value is a representation of your earnings from your labor. Store your value wisely.

CryptoCurrency Value Storage vs US Dollar Value Storage

In order to understand this concept we need to change the way we think about money. Money represents your Worth and Work. Money is used as a means to trade your stored value for other goods and services. You trade a portion of your stored value (Money) to reach your living and financial goals.

The United States Dollar Stats for $1:

• Bank Interest Rate: +0.194%

• $1 x 100.194% = $1.00194

• Inflation Rate: -3.15%

• $1 x 96.85% = $0.9685

• Profit/Loss = -$0.03344

You are LOSING on average 3 cents to every dollar every year.

CryptoCurrency Stats for 1 Crypto Coin:

• CryptoCurrency Interest Rate: +0.00%

• 1 Coin = 1 Coin

• Inflation Rate: 0%

• 1 Coin = 1 Coin

• Profit/Loss = $0.00

You will NOT LOSE CryptoCurrency due to Inflationary Practices.

You actually lose money holding your stored value in US Dollar.

You may lose Value do to Market Fluctuation.

Money Alternatives

The United States Government treats CryptoCurrency like a property. That means you are legally trading Property in exchange for goods or services when using CryptoCurrency.

The statements in this article are nothing more than the opinions of CMA and should be used as nothing more than educational and opinion material. CMA has never and will never claim to be Financial Advisors or give Financial Advice.