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A store of value (SOV) is an asset that retains its value over time, allowing it to be saved, retrieved, and exchanged in the future. Sound money, such as gold or cryptocurrencies like Bitcoin, is often considered a store of value due to its ability to preserve purchasing power in the face of inflation or economic uncertainty. A reliable store of value offers stability, making it an essential component of long-term investment strategies and wealth preservation.
Bitcoin, in particular, has gained recognition as a digital store of value because of its fixed supply and decentralized nature. With a total cap of 21 million coins, Bitcoin is resistant to inflation, making it a hedge against the devaluation of fiat currencies. Additionally, Bitcoin’s decentralized network ensures that no single entity can manipulate its supply, enhancing its appeal as a trustworthy store of value. As a result, many investors view Bitcoin as "digital gold," holding it as a safe haven asset in times of economic instability.
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For Plena Finance, the concept of a store of value is central to its DeFi ecosystem. Users can hold and manage various cryptocurrencies through the Plena app, utilizing them as stores of value. Additionally, stablecoins like USDT or USDC can be integrated within Plena's platform to provide users with more stable assets that protect against the volatility often seen in the crypto markets.
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