ELI5: Explain Like I'm 5

Store of value

Think of your piggy bank, where you put your coins and bills that you have saved up. You keep them there so that you can use the money in the future, like when you want to buy something you really want. The piggy bank is a "store of value" because it keeps your money safe and secure until you need it.

Similarly, a store of value is a way to keep money or assets that have value safe and secure for future use. It can be in the form of physical items, like gold, silver, or jewelry, or digital currencies like Bitcoin or Ethereum. These things can be exchanged for goods and services worth the same value later on.

For example, if you want to save your money, you can either keep it under your mattress or put it in a bank account. However, putting money in a savings account in the bank is a safer store of value because the bank will keep your money safe and add interest to it. It means that the amount of money you put in your bank account will increase over time.

In conclusion, a store of value is a way to keep things that have worth safe and secure for future exchange or use, like a piggy bank or a savings account.