Cash is Trash!
Tags: World Reserve Currency, Cardano, Litecoin, Real Estate, Bitcoin

Cash is Trash!

Cash loses value over time. We all know this, we remember all the candy we used to be able to buy with a buck or two when we were kids.

The ever diminishing purchasing power of cash, is designed to make people want to invest it, or spend it; sooner rather than later.

The reason is simple, the whole idea behind engineering cash to lose value over time, is precisely so you feel the need to spend it or invest it, resulting in your dollar spent becoming someone else’s dollar earned, in hopes that this process is repeated as fast as possible in your community.

By repeating said process, the economic engine of the USA gets busy creating value with the same amount of circulating supply of Dollars, and avoids printing; which debases the idea of scarcity being the primary factor behind something having more value versus something else that’s available in large quantities. (E.X the value of Gold vs the value of Corn)

Parking currency in some bank, or hoarding it under a mattress collecting dust, creates a deficit in the circulating supply of dollars causing the inevitable printing of more cash by the government.

The more Dollars people save, the less money is circulating around for other people to earn it as income. It’s not rocket science!

Therefore, being too conservative with the money, or perhaps being lucky enough like Jeff Bezos, Elon Musk, or Zuckerberg to have so much money that it becomes impossible to spend it all, causes a downward pressure in people’s wages, and can cause the economic engine to come to a halt, or to continue operations with an ever more enslaved and disgruntled general population who find themselves having to work more and more in order to maintain their status quo.

The faster Dollars gets spent by someone other than us, the faster the same Dollars can become part of our income, and on the same token, the faster we get to spend it, the sooner it becomes our neighbor’s income; resulting in less money in circulation needed in order to create value, which in turns keeps prices under control and inflation at a minimum.

But that boat has already sailed, and cash is now more toxic than ever after the trillions of dollars that just got printed, and the many trillions more awaiting to be printed soon.

Cash is set to lose a net purchasing power of 15% a year for the next 5 years.

This means that what you can buy today with $100 in 5 years you will need $175 in order to buy that same stuff.

So keeping the money in the bank, saving and sacrificing yourself for 5 years, wishing to buy that house you really want, is just as practical as burning 75% of whatever you have saved RIGHT NOW and jumping on that mortgage TODAY with whatever is left of it.

That’s because real estate is considered by many as an investment that serves to help move the economy around creating jobs in a myriad of sectors, while at the same time serving as an almost perfect hedge against inflation which in turn helps us safeguard the purchasing power of money throughout time.

Real Estate is generally believed to inflate at a rate of 5% to 15% yearly. So let’s say that in 5 years Joe and Jane (who only had $10,000 saved up for their house) finally save up those $40,000 they needed for that $250,000 dream house they fell in love with 5 years ago expecting to be incurring a $210,000 mortgage; now the house they really wanted is no longer $250,000, but it is now $350,000 considering that Real Estate prices rose by around 5% a year in those five years.

So, by the time by the time Joe and Jane thought they were ready to get into their dream house by saving a whopping $40,000 in 5 years compared to their initial $10,000 they had, they are now in a worse situation than before.

Think about it for a second:

The year is 2020 and our beloved couple have a decent $10,000 set aside for buying a house.

They decide to wait until they have saved up $40,000 in order to minimize the mortgage amount as much as possible.

Joe and Jane are extremely happy because hey are successful at accomplishing that goal in 5 years, as they should be, they have shown the kind of sacrifice and perseverance 80% of the population lack.

There is one small problem however and it is that their dream $250,000 house is now worth $350,000

So what could’ve been a $240,000 mortgage if they had bought the house when they only had $10,000 saved; is now a $310,000 mortgage after the $40,000 they were able to “successfully saved” during 5 years of saving and sacrificing.

So did they really saved any money? Or was it all just a big scam for them to put money in the bank, where the only ones benefiting from that added liquidity was the bank itself who was probably lending their own money to other people at an interest?

Joe and Jane should’ve been better off entering into their dream house when they only had those $10,000 saved up.

In terms of value this feat accomplished by our friends, including all those nights of not eating out, not going on vacations, snd being frugal was LITERALLY FOR NOTHING. They money they saved up, compared to what the asset they truly wanted is now meaningless, and this sacrifice of trying to save these $40,000 has actually costed them $100,000 in mortgage debt.

That is modern day slavery… and that’s the perfect example of why the world’s fiscal policy seems to encourage money to be spent as soon as you earn it.

Enter BITCOIN

Bitcoin’s inflation rate is not subject to any country’s monetary policy, nobody can decide to either print more or less of it, it follows an algorithm, Bitcoin is a set of mathematical rules running in a decentralized, blockchain based system, that has proven impossible to hack.

Bitcoin is also limited as to how many Bitcoin will ever exist, with a maximum of 21 Million of it, so it’s also great as a store of value; as it is fantastic as a medium of exchange and value transfer.

Today’s international commerce relies on the US Dollar to make transactions. Italy sends wine to Venezuela, and they expect to be paid in US Dollars, not in Bolivars, and that happens because they simply DO NOT TRUST the Bolivar. So make things simpler, the world got together about 100 years or so ago, and they decided they would all do business using the US Dollar, it was believed back then to be the strongest currency. And incredible amounts of dollars are now circulating in the world. There’s whole countries even, which use the US Dollar as their national currency.

But, what happens when the world stops trusting the Dollar as the international medium of exchanging value? What happens when the world says NO MORE to the USA’s monetary policy and printing frenzy?

What happens when all these dollars begin to find their way back to the US because nobody wants to hold a currency that loses so much purchasing power and generates such an inflationary pressure on basic human needs such as safe shelter and a roof to call home?

If you were a whole country, You probably would not like your purchasing power to be diminished by 15% per year due to the irresponsible monetary policy of another country, would you?

So why are you content with living under such a monetary system? Is it because things happen so slowly that you are not aware they’re happening?

Did you know that if you drop a frog in boiling water, the frog will immediately jump back out, but if you were to put the same frog inside a pan containing fresh water at room temperature, and slowly brought the water to a boil, the frog would have actually stayed put and died?

Ray Dalio, famous economist and business man puts it like this: “Things happen gradually, until one day; they suddenly happen”

If the world continues to do international commerce in US Dollars, the planet will see a net loss in value. of 15% PER YEAR!!!

That’s 15% more time spent generating value at work so that any person can maintain their same lifestyle which ,by the way, is also going up by 15%

At 40 hours a week X 1.15 , that’s an increase of 6 more hours that a person has to work to see no change in their status quo.

Or yearly that is 13 more days of work.

And that’s only the 1st year!!!! What about the other 4?

Monetary Slavery is not just right around the corner, it has been happening for decades! We just didn’t know it because the effects of the USA monetary policy where hitting in places far away from us, thanks precisely to the US Dollar being the world reserve currency, other countries would buy the US Dollars to hold and try to preserve their own purchasing power because their own currency was weaker than the dollar, and they were ok by taking the hit in dollars rather than in their own money.

These countries have been acting just like Joe and Jane did when they wanted to keep saving to buy their house. And they are furious now that they see that their US Dollar holdings are posed to take such a hit for the next 5 years.

This is why Bitcoin and 3rd generation cryptocurrency platforms like Cardano (which can host other countries digital currencies while keeping them sovereign and adding programmable features as well as smart contracts to them if they wanted) are catching the attention of Joe and Jane, and that’s why it’s catching the attention of giants corporations with lots of cash in their balance sheets, here in the USA and around the world.

They expect for this 100 year cycle of the US Dollar as the World Reserve currency to be over sooner rather than later.

The USA has begun serious talks regarding the “Know Your Customer” (KYC) , and how to handle private wallets. They aren’t stupid either, they know that the cat is outside of the box, and they want to make sure that they don’t loose on their ability to tax the value that is being transferred using cryptocurrencies. They understand that cryptocurrencies are nothing but the only logical step in human evolution, and they want a smooth transition rather than a revolution.

Why do you think the Stock Market keeps going up despite the sheer amount of unemployment?

Why do you think Stock prices keep going up even though these listed companies are not necessarily being more profitable? Or at least not profitable enough compared to the rate their dividends are going up versus the rate at which their stock is going up in price.

One thing is for a Stock to go up in value (going up based on company’s profits)

And another thing is for q Stock to up in price (going up based on offer and demand regardless of fundamentals)

Somehow despite the obvious price hikes with no fundamental value added, the Stocks keep moving up, even when the USA is experiencing the worst unemployment situation in the past 80 years. That’s because large institutions, small to big companies, the wealthy , banks, and retirement funds all KNOW WHATS ABOUT TO HAPPEN and they rather put their money into “ANYTHING” rather than leaving it in cash.

The problem with putting all this money in the stock market is that the stocks keep going up and up in prices while the DIVIDENDS these companies pay are not going up at the same rate, as in: NOT EVEN CLOSE.

This creates a situation where the vast majority of the people are not in the market because they “believe” a particular company can pay them a dividend in return that is higher than what the bank is able to pay them. But they are rather in the market, just to see who’s the greater fool that is going to pay them more money for the same stock.

Mark my words , stocks are not designed to function as money, so when the inflation of common goods start to catch up to the stock market inflation, there will be a massive sell off from big institutions looking for the next best thing that can keep them ahead of the game in terms of purchasing power. They will sell before you get a chance to do so. This is the information age, and they are closest to the sources, they will know when that higher rent and loaf of bread is going to hike up in price high enough for you to have to sell that Tesla Stock! Leaving y’all’s pockets dry, holding the bags of coal you once thought could be traded at diamond prices.

Remember the numbers: You will have to work 13 more days this year to keep up with inflation! That looks an awful lot like a worker’s vacation time, doesn’t it?

The USA is going to start allowing companies to BUY BACK your vacation time from you at a premium, just like they do in Japan and some Slavic countries, which offer to pay you 15% to 25% more per hour to buy your earned vacation time back from you.

And because your current lifestyle is going to be 15% more expensive in a year, you will sadly find yourself selling your vacation time back to your OWNER.

Be smart, stop being a modern day slave, and get into cryptocurrency NOW before it’s too late.

CryptoMensan

Ramon Viggiani

#bitcoin

#cardano