4 ms·
If aliens came to earth I wonder if they'd truly see much difference in value creation between dollars stored in a private bank and dollars stored in a pile of
by notch898a 4y ago
If aliens came to earth I wonder if they'd truly see much difference in value creation between dollars stored in a private bank and dollars stored in a pile of cash. Either way the same non-financial goods and services are on the market.
- rocqua 4y agoPiles of cash are risky! They can be stolen, rot, burned, forgotten, etc. Besides, they are horribly inconvenient. Paying your hosting bill in cash would suck. Paying your salaries in cash would be a nightmare! Cash has massive friction. And a significant risk profile.
- salawat 4y ago...And yet, there is a certain security in that instead of someone getting one number and taking over or locking out your account, they first have to physically find your money. People underestimate the power of not having assets somewhere they can be frozen by a third-party. Risk is never destroyed. It's just changed from form to form...
- baq 4y agoEscobar’s accountants had to write off a percent or so a year because rats ate it.
- salawat 4y agoShoulda invested in better exterminators. Money would have gone further.
- rocqua 4y agoThe risk profile of cash and bank deposits are wildly different, and largely incomparable. It is a personal decision which you risk you like more. Certainly, cash has advantages over bank deposits. My point was that it also has downsides.