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I think it's weird that people expect to just be able to just watch a pile of cash and have it maintain value indefinitely (or even grow in value). Every other
by creato 5y ago
I think it's weird that people expect to just be able to just watch a pile of cash and have it maintain value indefinitely (or even grow in value). Every other resource you could trade for that money would decay over time.
- hackerfromthefu 5y agoThe buying power of your cash is surely decaying over time.
- creato 5y agoYes, as would anything else. That's the point.
- reedjosh 5y agoWell, real estate, gold, and bitcoin don't.
- simplestats 5y agogovt bonds aren't generally expected to decay over time either. But I suppose they are these days.
- simplestats 5y agoAh. No that's not what I meant. Option #1 is risk the money. Option #2 is sit on cash. You forgot about option #3: invest it somewhere that is both not risky and safe from inflation. Institutional investors have hedging strategies that achieve this. For us little people, there used to be crappy govt bonds that would safely give you the inflation rate more or less. Now they give you negative returns while inflation climbs. And of course the traditional hedges like real estate and precious metals are sky-high and dominated by speculators.