Antiques, calligraphy and paintings, works of art, expensive tobacco, wine, diamonds, jewelry, gold, real estate, etc., account for a large part of the world's asset forms. Seemingly, they are for consumption, appreciation or living, but the vast majority of the functions come down to store of value eventually. Store of value is an absolutely important rigid demand for the vast majority of people, regardless of whether they are rich or poor, and regardless of the exact size of their wealth.
1.A superior store of value must focus on the long-term. It starts counting from ten years, and thirty years wouldn’t be long. It is best to last generations. The short-term price rises and falls of a few months or even a few days are purely speculative gambling to make quick money and has nothing to do with value storage.
2.A superior store of value must not be bothered. The so-called store is to buy it and put it away. The kind of things that need to be watched at all times, operated frequently, concerned about market changes at any time, and ready to be sold at the slightest sign of trouble, are market speculations by small traders and hawkers, not good value stores.
3.A superior store of value should have low cost of ownership, not be spoiled, not worn or corroded, not fragile, and not affected by time or the environment. In short, it is best to be fire-proof, moisture-proof and shatter-proof, and it will remain unchanged for thousands of years.
4.A superior store of value must have a large enough production scale and a sufficient number of products that can be held. It is best to be scattered and collected around the world. Only in this way can it resist local changes in the market and survive in the market for a long time. This requires a particularly broad and suitable characteristic, which cannot be dependent on specific cultures, cannot be rooted in the background of certain civilizations, and cannot only circulate in a particularly small cultural circle or unique regions.
5.A superior store of value cannot have a particularly important practical usage, or contain a particularly high value of modern technology. Because human science and technology are always developing, medicines or high-tech items that seem to be indispensable at present will soon be replaced by more efficient technologies in the future, and things that are currently expensive and useful will become worthless value. The typical example is that certain chronic diseases and high-priced drugs were mass-produced at low cost (such as the value of morphine or penicillin during the war), or rear-projection TVs, DVD players, mobile phones, and Beeper machines.
6.A superior store of value must have a very clear, objective and unified basic production cost that can be easily and effectively evaluated, that is, it cannot be produced by "costless mass printing", nor can it be created by "ordinary people at one stroke". Cost estimates cannot be subjective, volatile, dependent on temporal conditions, "artistic", ambiguous, relying on intuition, "market consensus" or strategic value. Good examples include gold, jewelry, antique, celebrity calligraphy and paintings. And bad examples include blind children’s graffiti and artists’ shit cans, which are “avant-garde works of art”.
7.A superior store of value requires sustainable production, but it is best to make it harder and harder to produce and not easier to obtain. The collectible items that cannot be produced sustainably will be too strong due to the "sit idle and enjoy the fruits of others’ work effect", causing later participants to seek other value storage targets, instead of looking for those old antiques forever. Only when sustainable production is ensured, could new market participants and market liquidity and gameplay be ensured. Typical examples such as gold, jewelry, diamonds, jadeite, villas, calligraphy and painting, Moutai, red wine, etc. are all available. continuous production.
8.A superior store of value cannot have any systematic risks. In other words, it needs to be decentralization, it must and has to be true decentralization. Systemic risks such as: the number of tokens or NFT issued is completely controlled by the project party; assets with particularly obvious cultural preferences may lead to widespread boycotts, the value of assets is endorsed by the project party or a "treasury" controlled by multiple shareholders. Assets Issuing on a vulnerable contract platform faces potential hacking risks, and the project party may screw up and run away deliberately.
9.A superior store of value requires a certain degree of uniqueness and collectability. That is to say, in addition to the basic cost value, it must have a certain personal aesthetic value or a unique meaning of personalization and collection, but it is not obvious one-way customization (customization will seriously affect the realization of secondary circulation). Such items will greatly increase the momentum and stickiness of the overall market holdings, and reduce the selling expectations when the market is in depression.
10.A superior store of value needs to be original, not a copycat imitation. If there is not much difference in other situations, in the long run, funds and attention will definitely converge on the originator. It is best to create a new art form or technical concept. It cannot be deliberately imitated to cater to the speculative needs of the market.
