Good afternoon Steemit world!
I wanted to get this out there because I think this is one of the most important thing a person can know when it comes to real finance and how things have changed over the past 100 or so years. Unfortunately most millennials(and many others) do not know the true definition of money or the difference between real money and currency.
Money by definition is a store of value that maintains its purchasing power over time. Currency on the other had is defined as a representation (most commonly in physical form) of a specific value of money that changes over time. The problem that most people don't seem to understand is that although currency can represent different valuations of money, the purchasing power of the currency valuation does not stay consistent over time.
In other words your 10 dollar bill that bought you three tanks of gas, a candy bar and an energy drink from the gas station in 2011, now only gets you two tanks of gas and candy bar. This happens because over time the purchasing power of your currency has been dwindled down due to inflation. Now inflation is not always a bad thing, actually inflation is an important part of any growing economy. However once the rate of inflation begins to increase faster than an economy can handle, It ultimately can become extremely bad for the citizens of that country. Furthermore once inflation levels begin to get out of control it can be very difficult for a government to slow down the rate of inflation. Think of inflation as a single snowflake. Once a few of the snowflakes stick together it forms a snowball that starts slowly rolling down the mountain. Eventually that snowball gathers enough snow and begins growing at an exponential rate which eventually leads to the AVALANCHE (or in this case death of purchasing power and the economy as we know it)!
Lucky for us, there is a way to avoid personal economic death in this avalanche that our system has created! It is called REAL ASSETS! In order to have real assets you have to find ways to invest your money that will not only be sustainable in the present day but that will also pass the test of time. The key is to look for investments that are growing at a rate greater than or at a minimum equal to the rate of inflation. Silver and Gold have stood the test of time and have been used for centuries as TRUE assets for wealth preservation. Although I am also a big fan of crypto currencies the reality is that they are still extremely young in the big picture of finance and economics. Not saying that they will not become a great way to store wealth for the future however I feel much safer owning physical assets. Disclaimer: I OWN BOTH GOLD, SILVER AND CRYPTOS!
Please let me know what you guys think in the comment section and make sure to upvote and resteem!
Until Next time
-MM
The only thing make me rethink that idea is of the bubble we are currently in. It's a matter of time when it's going to burst.
Depending how long you hold on to it might be debatable or profitable.
Also, an asset makes you money not a debt.
Nice article!