I'm A billionaire! — Fiat Currency vs. Precious Metals
Hi Steemit!
When I blew the dust off my childhood coin collection, I suddenly remembered I'm a billionaire. And it's all legit, because the government says so.
Here's the proof
50 billion dinars (Yugoslavia)
Fifty million dinars (Yugoslavia)
You probably know that I'm joking. This money is absolutely worthless. And that is the flaw of fiat currencies such as euros and dollars. Since it's not backed up by anything intrinsically valuable, the private banks that control the issuing of money can create as much of it out of thin air as they desire!
It's a fairly simple rule that, the more money is in circulation, the less value it has. More supply, less value. But somehow the financial elite still want to convince us they know what they're doing. Maybe they are, but of course they know perfectly well that their system is not sustainable. I wonder what their end game is...
After looking through my collection some more, I came across some interesting coins
Vincent van Gogh commemmoration coin
Michiel de Ruyter commemmoration coin
These two coins have a nominal value of 5 euros. However, they are made of 92.5% silver. As the price for silver is €0.48 per gram, the real value of these coins is more than the nominal: €5.28
What does this tell us?
Fiat currency always tends to inflate (of course I'm not talking about cryptocurrencies right now. That's another story). Even though the nominal value of the Yoguslavian bills was very high, their real value is virtually zero.
On the other hand, precious metals like silver maintain their value and sometimes even increase in value, because they have intrinsic value.
So, how do we make sure today's fiat currencies don't undergo the same fate? We can't. As a matter of fact, all fiat currencies suffer from inflation due to the flawed financial system of fractional reserve banking. In many parts of the world you even lose money that you keep on your bank account. The worst example today would be Venezuela, where money has become worthless in just a couple of months.
Make sure you don't lose your hard earned money. If you're going to sit on your money, make sure you invest it wisely. I hope this little example makes you realize this.
Indeed fiat currency is only backed by your goodwill toward the state and that can go into smoke very fast. 👿
That is why the financial elite do not store their money in dollars or euros but in stocks, gold, real estate or rare artwork, as only these things have real value even if they are not very liquid. Bitcoin has the advantage of having both value and liquidity.
Exactly!
So scary that we're only one reckless government away from a financial meltdown and all that hard earned money becomes worthless.
Exactly
Only a Billionaire, bloody peasant!!!
I'm worth 100 Trillion Dollars
Can I please borrow a few bucks for a cup of coffee?
Haha nice one. I've seen that bill before :)
No, a cup of coffee is 'ONE HUNDERD TRILLION DOLLARS AND SIX CENTS', and I just can't do that! :)
Good point made @rvanstel .In India recently a note baan took place. People who had there money invested already were safe....But the one with stored hard cash went suddenly bankrupt. Lessons learnt ~ Investing the money is always fruitful and safe.Thanks !
thank you for sharing this. i followed you and upvoted , hope you can do the same. steem on friend .
You made a point here, I feel sorry for Venezuela though our situation in my own country is just a stone throw difference. Thanks @rvanstel for such post, I concur because I face the same challenge here .
Stay strong friend
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and not only Yugoslavia now X11 coins like CryptoClubCoin can get you in the millionaires camp very fast.... and one day.... everyone will see that even the shittiest coins are better than Fiat! i have Also billions in Rubles from the Bolshevicks gold paper emission.... and you made it clear that we follow deflation here in cryptos when fiat is starting to be in hyperinflation more and more visibly.....
@abol it must remind you being a billionaire under Tito in Belgrad some times ago?