Money as an Idea-6-Wealth defined
What is wealth? Wealth is your freedom, your life energy and your time. There are actually many definitions of wealth. In my opinion, this is the most useful way for us to think of our wealth.
What is wealth storage? What is money? What is currency?
WHAT IS CURRENCY?
Let’s start with currency. The characteristics of currency are durability, portability, divisibility, fungibility(uniformity/interchangeability), and acceptability. Currency is simply paper. This paper money is a tool for trading your time. Currency has no intrinsic value!
One of the biggest problems with currency is that the governments or central banks can print more and more of it whenever they want to. This naturally inflates the total currency in global circulation. This dilution of the currency supply is slowly, continuously transferring wealth out of your pocket and your bank account straight to the government and the banking system. This can be viewed as a hidden form of taxation.
Historically there have been thousands of currencies. All fiat currencies (currencies not backed by gold and silver) have gone to ZERO! That’s a 100% failure rate for fiat currencies! As currencies get devalued, we lose our purchasing power. One of the only ways to prevent a loss of wealth is to build a store of wealth in real money (silver and or gold). Many bankers and financial accountants probably do not fully understand the difference between currency and money.
WHAT IS MONEY?
What is money? Money has the same primary characteristics of currency, namely durability, portability, divisibility, fungibility(uniformity/interchangeability), and acceptability. Money has one additional characteristic. The term money refers to objects that have intrinsic value. Because of this additional characteristic, money is a store of value and maintains its purchasing power over a long period of time.
Silver and gold are the optimum forms of money because of their properties. You can store a large amount of value in gold and silver in a very small area. Only silver and gold have maintained their purchasing power throughout the past 5000 years! This is because silver and gold are limited in quantity, i.e. there is only a finite supply of silver and gold on planet earth!