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You want to know what's a terrible investment? Cash. It has lost more than 90% of it's value in the last 100 years.
by narrator 8y ago
You want to know what's a terrible investment? Cash. It has lost more than 90% of it's value in the last 100 years.
- axpence 8y agoThis is such a great point because it underscores the importance of viewing investments with a longer time scale than I am used to.
- muzani 8y ago100 years isn't so bad. Try living in a developing country. It loses 50% of its value in 15 years. By the time you save up for college, you need twice as much.
- imjustsaying 8y agoI'm guessing his greater point was that fiat cash in general loses its value.
- montyboy_us 8y agoAnd has since the beginning of time. Adam Smith discussed such devaluations and the incentives in his seminal work back in the 1700’s.
- dredmorbius 8y agoAs does specie. "On the Continuous Devaluation of the Roman Currency" http://www.rmki.kfki.hu/~lukacs/ROMLAS.htm http://www.rmki.kfki.hu/~lukacs/ROMLAS.htm http://www.rmki.kfki.hu/~lukacs/ROMLAS_files/image008.gif http://www.rmki.kfki.hu/~lukacs/ROMLAS_files/image008.gif "For in every country of the world, I believe, the avarice and injustice of princes and sovereign states, abusing the confidence of their subjects, have by degrees diminished the real quantity of metal, which had been originally contained in their coins." https://en.wikisource.org/wiki/The_Wealth_of_Nations/Book_I/Chapter_4 https://en.wikisource.org/wiki/The_Wealth_of_Nations/Book_I/...
- ric2b 8y agoI guess Bitcoin would be the first real "gold" standard, then.
- notahacker 8y agoBitcoin lost more value in six months than most currencies managed in half a century, and yet 'miners' were still incentivised to make more of it...