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Yup Every "currency" (even the legal ones like USD) are in the end "assets" If people predict that the value (not price) will rise, they hold. If people pred

Yup Every "currency" (even the legal ones like USD) are in the end "assets" If people predict that the value (not price) will rise, they hold. If people predict that the value will drop, they sell (i.e. swap it with something else).

8note 5y ago
Currencies however, are expected to drop in value slowly
- PikachuEXE 5y ago
  Depends on the "currency" type Some legal currencies are issued more and more based on "government credit" instead of real assets like gold will likely have their value drop (supply > demand). For "Cryptocurrencies" (let's discuss whether they quality as "currency" or not in another place) Some types of them has limited supply by design (but the supply can still increase slowly for the next N (e.g. 10) years with slower rate each year) So if the demands goes up (which can also go down) and the supply does not grow too much, the value per "coin" would increase.
tcmart14 5y ago
Maybe for some, but not for the majority. I don't view my dollars as assets. I view my dollars as a way to get goods and services (mostly as a way to pay bills). I don't hold on to dollars if I expect the value to rise (I don't really have a choice), like most people, I live paycheck to paycheck paying for a roof over the heads of my kids and food in their bellies. The only people I know who "hold" fiat currency either are ridiculously rich, are single with no serious responsibilities or when I was in the Navy, there was scheme thing going around that to get rich quick enough to get out the Navy and fuck off for the rest of days, day trade foreign currency (didn't really work out for anyone).
- PikachuEXE 5y ago
  That's due to you are valuing "goods and services" higher than your dollars. (Certain amount of it not all of it) Unless you spent every dollar or convert all remaining dollars into something else, you are holding those dollars. And some "convert all remaining dollars into something else" actions are sometimes called "investment".

8note 5y ago

Currencies however, are expected to drop in value slowly

PikachuEXE 5y ago
Depends on the "currency" type Some legal currencies are issued more and more based on "government credit" instead of real assets like gold will likely have their value drop (supply > demand). For "Cryptocurrencies" (let's discuss whether they quality as "currency" or not in another place) Some types of them has limited supply by design (but the supply can still increase slowly for the next N (e.g. 10) years with slower rate each year) So if the demands goes up (which can also go down) and the supply does not grow too much, the value per "coin" would increase.

tcmart14 5y ago

Maybe for some, but not for the majority. I don't view my dollars as assets. I view my dollars as a way to get goods and services (mostly as a way to pay bills). I don't hold on to dollars if I expect the value to rise (I don't really have a choice), like most people, I live paycheck to paycheck paying for a roof over the heads of my kids and food in their bellies. The only people I know who "hold" fiat currency either are ridiculously rich, are single with no serious responsibilities or when I was in the Navy, there was scheme thing going around that to get rich quick enough to get out the Navy and fuck off for the rest of days, day trade foreign currency (didn't really work out for anyone).

PikachuEXE 5y ago
That's due to you are valuing "goods and services" higher than your dollars. (Certain amount of it not all of it) Unless you spent every dollar or convert all remaining dollars into something else, you are holding those dollars. And some "convert all remaining dollars into something else" actions are sometimes called "investment".