Hey Jessavers
Storing our excess time and purchasing power in a store of value is not as straight forward as it used to be for previous generations. In years gone by, you could store all your wealth in gold, real estate or cash and live out your life without having much financial knowledge. These days, however, with all the crazy monetary policy changes and debt levels, it becomes harder for the average Joe and Jane to store their value safely.
The way money works in the modern world is trickling up through inflation, taken from fiat nad pushed into assets. Asset holders benefit while fiat users suffer. This is why the majority of the world is split into such big haves and have not, and it continues to get worse.
But If you think the worlds rich are sitting on piles of cash that they swim around in regularly like Scrooge McDuck or they're burying it in drums all over the country like Pablo Escobar, you've got the wrong idea.
Keeping money safe is a loaded term
In the world we live in there are so many people after your money, from scammers and thieves to tax, inflation and banking fees. There's always someone or some company trying to get your purchasing power and offering you nothing for it in return.
We all think banks are safe because deposits are insured, they accept liability, but I can't tell you how many times I've had fake or fraud on my credit card. How many times people have tried to collect a debt I never owed and all sorts of shit from having your data leaked by these institutions.
Safety from risk
All of us are speculators whether we like it or not if you're a homeowner you banking the land never gets seized, or losses value rapidly due to a migration change. If you're a stockholder, you're hoping this company continues to be profitable. If you're a bondholder you hoping governments and corporates continue to service their debt.
In all money-making, there is a risk, some low, some high and even then the low risk could also go bust as we see with the current climate as companies die out faster than ever before and governments solvency is coming into question.
So now you have to look at ways to hedge that risk in other ways, like precious metals or crypto that has a mind of its own.
Safety from debasement
Fiat money is seen as "safe" because it loses value slowly over time and people have become okay with that. They're happy to see it die slowly one way than something that moves up and down based on supply and demand. So while you have no risk in fiat, you only have the risk of losing purchasing power over time.
This grows each year exponentially so not hedging against it by owning other forms of money will see you lose larger and larger amounts each year.
Safety from theft or loss
Having physical money like cash or gold has its risks, in how you store it. You could store it on your own in a safe, but you risk home invasion or custodial but then take on 3rd party risk and fees for storage.
Protecting your purchasing power
No matter what you do in life, you're always going to lose money/purchasing, that is a fact. All we can do is protect against the worst of it and accept that some of it slip away over time.
Making sure your excess purchasing power is a hedge against major threats can not only give you peace of mind but give you a way to take on risk knowing you have protection.
Protection allows for risk
This can lead to better opportunities as you go further out the risk curve. To make larger returns to make up for what you lose you have to take the risk, but if you're adjusted for risk in your portfolio and have the risk priced in, you're more likely to succeed than fail.
Instead of making one risky bet, you could make five smaller positions that are all risky, when four fail, and one wins, you still make up the losses and profit.
This is how you match your risk and reward.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
Let's connect
If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler and subscribe to my fanbase
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they man earnsat and crypo.com not working or suggest other great site for earning
Thanks I'll have a look at fixing those links, you can check out this post on 25 ways to earn crypto as well as ways to earn interest on your crypto
My crypto.com reff link is this - https://crypto.com/app/7svdqvmqx6
or use the code: 7svdqvmqx6
so who im gonna earn from it
You can earn 16% APR on your funds in CRO, and I think if you buy $50 of CRO you get $50 extra and i'd get $50 too
so fro 50/10to 150 k=joj
So $50 for me and for you after you deposit 50$ then you can lock it up for 3 months at get 16% APR I’ve been using it now for 10 months
Posted using Dapplr
Are you going for the hive-engine-liquity-market-maker-thing too?
Yes I am, just waiting for some filthy fiat payments to come into my account and I'm going to buy some BEE and make a few markets and you?
Soon. 100 BEE fee make this thing Only possible with higher amounts.
I've been doing some farming on TRON and JUST.Swap its pretty cheap to do it and some good returns I make about 15% a week
So far we are just at uniswap
Lol I’m too poor to farm on uniswap those gas fees are killer for me Thats why I use TRON and HIVE
We are a Couple of People doing it Together.
Is Tron Good too?
so should i have 10 different crypto wallets? (lol i already have 2 wallets)
what do you think about mining and Fauceets?
I'd say something like that yes, so a multi-sig for your long term storage if you have ALOT if you don't have a lot in long term storage then a cold wallet and then keep some on a hot wallet perhaps you want to use and then some on custodial services and exchanges for price swings.
I don't mind faucets at all I just wouldn't make it my only source of getting crypto, its for sure nice to use to add to your holdings. As for mining, I'd say for me it wouldn't be worth it because our power is erratic and costly, but if your region it makes sense id' be mining zcash or monero
I've been meaning to build a lightning node and make some satoshis, just been a bit busy lately
Your best ally is knowledge and adaptation in the current evolution of money.
Absolutely I don’t regret learning about crypto in 2015 even though I lost a lot of money along the way it’s been overall a big positive for me and I think it’s going to be a lot of where my future and the worlds future lies
Peace. Hope your well. Did you get the uniswap windfall? The free tokens.
Yes I got my uniswap stimulus check lol I’ve set to sell at 10,11,13 dollars and see if ever gets filled! Stranger things have happened and well free money making me more free money isn’t a bad thing in my book!
I have been doing some yield farming on TRON though since it’s far cheaper than ETH
nice, yeah, i panicked and sold around $4. My son sold half there and held out for $5 and $6. I don't have a clue, but if you look at the charts for Sushi, it might turn out to be the same. haha, that's what my son said, stimulus checks
Yeah it could pull a sushi but looking at the inflation and the fact that it’s now on coin base and Binance as well as a few other exchanges ready to list it I think it still has a pump or two in it but that’s just me being greedy I did see it touch 8 bucks so let’s see I may need to revise
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