Keeping money in the form of fiat currency is useless
In my opinion, keeping money in fiat currency is useless. Global economic crises depreciated my local currency around 40%. Such a massive dip in last 15 months. The situation demands to keep your money in investment instead of depositing in bank or under your mattress. Although interest rate of bank in my part of the world is around 21% which is pretty high, but it is still less than 40% depreciation. So your investment will be in loss by 19% even your earn 21% profit on investment.
Money in your hand will never grow your money. In order to grow money invest money in diversify projects according to your choice. You can invest in any business, property, e-com or even in crypto market. Investment of money in good project will help you to grow your portfolio. Same way your investment may open a new way of earning for you.
There was a time when people preferred to keep money in the form of precious metal like gold and silver. In modern days fiat currency replaced the metal position. However, in current scenario it is good to invest money again in precious metal like gold and silver. Atleast, It will help to make your money relatively more safe.
Although investment doesn't gurantee to give you profit all the time but still it is a good practice to keep investing money in some suitable project. Investment of money opens new earning opportunity. Time to enhance our knowledge and skill and find a suitable investment plan. It will help to grow our portfolio. What is your opinion my friends?
This is it for my today post. Wish you all a very happy, healthy and prosperous life ahead. Have a nice time.
Great post @zartisht.
You've just written what is basically in the minds of so many lions. The idea of having fiat is such a crazy idea that doesn't profit anyone, most especially in my country where the value of our currency is gradually depreciating.
Seeing the price of dollar to my country's fiat rise on binance exchange, makes me happy most times, because whatever i sell profits me most.
But i feel sad for others that don't key into the use of crypto currency, but suffer the crisis of a bad economy😢.
yes, the value of your fiat kept decreasing due to rise in the inflation.
I am surprised to read that your bank is paying 21% interest. I guess that means the loan rate is even higher but I am curious which bank and country and what currencies they accept. With inflation rates that high all the non-perishable things you need to live are a good investment and then you can later sell them to your friends and family.
You have done exactly that. If we talk about the last two years, those who had accumulated money today are completely out of it because everything has become expensive and if those who had kept their money in dollars, today they are in for a huge profit.
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+1 I would say. Good read.
We lose more than we gain by keeping fiat currency for a relatively long period of time. I think most fiat currencies will continue to lose value over time, it's much better to convert that money into investments that earn us dividends or appreciate in value over time.
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I agree with the notion that investing money wisely can open up new earning opportunities and help grow one's financial portfolio. It's essential to stay informed, assess the risks, and seek expert advice when needed to make well-informed investment decisions.
I agree with you that keeping money in fiat currency is not a good idea. The value of fiat currency can fluctuate wildly, and it's not a good store of value. In your case, the value of your local currency has depreciated by 40% in the last 15 months. This means that if you had kept your money in fiat currency, you would have lost 40% of its value.
Investing your money in a diversified portfolio is a good way to protect your wealth from inflation and currency fluctuations. You can invest in a variety of assets, such as stocks, bonds, real estate, and precious metals. This will help to spread your risk and reduce your chances of losing money.
fiat keeps losing value as it is not backed with any real asset. Sad but true.
Crypto gives us hope but it is very volatile and on ramping and off ramping is a challenge.
So we have to have a mix of the two in our bags.