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No, people hold cash because they can get things done on short notice. Like if a storm blows over your fence, you can write a check and have it replaced. If you
by gretch 5y ago
No, people hold cash because they can get things done on short notice. Like if a storm blows over your fence, you can write a check and have it replaced. If you held stocks, bonds, or real estate, you’d have to sell that asset and withdraw cash to get your fence back up which is pretty unacceptable.
I hold cash knowing full well that I’m bleeding due to inflation, but the versatility is well worth it. That’s pretty much everyone who is holding cash other than a small handful of forex traders speculating on USD vs euros or whatever
- nightski 5y agoA credit card or some other line of credit is the best form of liquidity, more widely accepted than cash (I can easily use it internationally or online). The reason to hold cash is its low volatility. You can store it in a savings account and even with inflation potentially driving your return negative when risk adjusted it may beat other assets and you don't even have to speculate on forex!
- gretch 5y agoTwice in my life I've had to hire a lawyer. One took wire transfers and the other took checks/money orders. The vast majority of attorneys require the establishment of a retainer account (and in most jurisdictions it's one of the criteria to tell if the guy is officially 'your lawyer' or not yet) And yet a lawyer is exactly one of those things where you say "oh shit I need one right now". There's a reason the saying goes 'cash is king' Good luck with your credit card