Good god. I'm really getting a lesson in economics on an online forum. I understand the concept of value. Cash has no physical value but it is backed by something which makes it legal tender.
Cash or fiat is backed by governments who have guns who want you to pay tax in their fiat
All the more reason to escape to crypto
He might try moving to Zimbabwe to feel how the national currency was worthless because of inflation and devaluation, I am sure you could be a new trillioner in there just to have local currency, but is it true that money amounting to billions worth? please buy a basket of eggs there, and maybe the price is the sum of 5 trillion Zimbabwe dollar
You also certainly know that there is a fundamental difference between savings and investment.
you may need to set it apart and need to choose a saving if you want to feel safe with your money, where the fundamental differences between the others,
for saving necessarily encounter case following =
1. Banks are required to provide a money back guarantee (although in the case is not entirely the money could be returned because the guarantee institution would have set the limits, the governmental institutions of my country to do so)
2. in saving Customers do not bear the risk.
Because the banks that bear the risk, the general rule is the banks have to accept a huge advantage. That means that the customers should receive a small profit.
Then the savings is not known as an ideal place to invest.
While investment is an ideal place to put the money in order to profit.
Investment would provide greater benefits than savings due to two things:
1. The investment company did not provide money back guarantee.
2. Investors bear the risk
Because investors bear the risk then the general rule is the investor should receive a large profit.
And it is a fact that prevailing in the economic society of any country.
As for concerns about the scam or losses in investments, was reasonable. Feeling nervous, anxious as it would affect all investors, whether they invest in the real sector such as property, mining, agriculture and financial sector such as mutual funds, stock exchange, etc (you may also want to read about a variety of large corporations that went bankrupt just as Lehmann brother, MF global etc)
if you do not know that the state can go bankrupt as a result of government policy mistakes, greece most actual examples of our time,
I myself experienced when the monetary crisis happen to my country (Indonesia), where eventually a lot of banks went bankrupt due to the customers roll in crowded did rush over their money, and the economic crisis has also brought political change in my country where the government overthrown, where there is chaos in the people when high inflation happen, where there is a bloody tragedy to the protesters. so actually there is no safe word wherever you are, including in the investment for each investment is definitely a risk, the world is full of risk and investment risk only a fraction of all kinds of risks you are facing in your real life. when you feel safe sitting at home any time you do not escape from a variety of risks, there remains the possibility to lose anything of value from you, whether you can died suddenly by natural disaster, your house collapses or burn, your kid get electric shock, get robbed, etc
currencies of countries have legal tender only if the country and the goverment still can be exist
war and conflict can change everything for your country and goverment
