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Money itself is not a good asset. I don't understand the point of excessive cash savings - cash is a vehicle for trade and transfer assets, not an asset in and
by 3am 14y ago
Money itself is not a good asset. I don't understand the point of excessive cash savings - cash is a vehicle for trade and transfer assets, not an asset in and of itself. Ie, if I have leftover money, I will put it in investment funds that purchase ownership stakes in companies (stocks), loans it to borrowers (bonds), or pay off my mortgage (real estate). Even gold or other precious metals. I try to keep a conservative amount to cover cash flow requirements, but honestly I don't understand hoarding Bitcoins any more than hoarding US Dollars. Neither makes any sense or represents anything of value.
- cookiecaper 14y agoMoney is just an abbreviation, an emblem of value. People commonly agree to use this thing that is worthless by itself because it's much easier to trade little pieces of paper and metal (or, in today's economy, move bits around) than it is to trade solid, final goods. People horde both dollars and bitcoins on the presumption that persons will continue to prefer trades facilitated by these value emblems instead of the much clunkier trade-by-solid-goods only.