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Do You Prefer CASH Hoarding or Wealth Hoarding?

Is Cryptocurrency hodling the Best Choice

By EstalontechPublished 2 years ago 5 min read
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I’ve arrived to the conclusion that even Crypto Hodling does not depict “wealth increase” after much thought.

What would be an alternative purpose for these crypto altcoins if they didn’t exist because they’re only available in digital form? Is it possible to sell them for cash and utilize the earnings to start a business? That simply means that someone else, rather than you, would be “hoarding” these coins. Why are they unable to take part in the investment?

In the financial realm, there is no such thing as “wealth hoarding.” The phrase is incomprehensible. “Trash” is the only thing you can accumulate. It has a Harsh Tone… But, plain and simple, “CASH is Trash” if you keep it for too long when the economy is deflationary and is facing a possible hyperinflation situation .

The majority of people who conduct extensive research into central bank monetary management are aware that the US currency is practically worthless to the point of depreciation and inflation, and that it is obvious that you are getting less and less for your money, so be prepared to suffer the consequences.

If you own assets that expand in value in lockstep with inflation, you’ll be safer in an inflationary economy. Cash outperforms stocks, commodities, and real estate investments… Cash is currently regarded “junk,” and it will be TRASHED if the conflict between Russia and Ukraine continues into the third month.

Being wealthy has nothing to do with possessing a lot of money, as the media and politicians would tell you. Having a large amount of tangible possessions is a sign of riches (real estate, income-earning investments, capital invested to employ people, speculative assets, etc).

Wealthy people do not have a lot of cash on hand; in fact, they are usually in debt, having borrowed money against numerous assets at low interest rates (mortgage).

Inflation lowers the value of the dollar, but because wealthy people own a lot of stuff, this has little effect on them. It is harmful to the regular citizen, who is forced to conserve money while the government spends a small percentage of it annually due to inflation.

The wealthy, on the other hand, benefit from inflation when they borrow. This is because, although inflation steals value from savers, it also steals value from the mortgage balance, making it easier to repay in the future. Currency will inevitably become obsolete as trash, thus you don’t want to be stuck with all of your assets in cash.

The only way to protect your assets is to invest in gold, silver, or cryptocurrencies; equities should be held in smaller amounts because they are theoretically considered monetary assets as well. Prepare for a depression if the stock market and real estate bubbles burst. A depression is always on the horizon, and the United States of America is well past due. It’s that simple: whatever goes up must come down, and cash is set to take the brunt of it.

Because cash is irrational, except in emergency conditions. Furthermore, the use of cash is irrational because the interest rate that cash currently provides is deflated by inflation and taxation, resulting in a very negative interest rate. As a result, cash, when viewed correctly, is more of a buffer against potential losses than a “investment.” It’s anything you do to prevent a total loss from happening. When you believe that all other asset classes, including gold, bitcoin, shares, bonds, and real estate, are overvalued, holding a big sum of cash stands up to the test of logic, math, and reason.

Of course, the issue here is one of timing. Investors are bad at predicting the stock market’s future. Human beings are more prone to be guided by fear than by reason since they are physiologically entrenched in nature. Not unless, you are an experienced investor ,the truth is that normal people do not buy at low prices; rather, they avoid them. The more the market falls, the more determined they become to get out of it. As a result, the great bulk of money is transferred into cash accounts at the bottom of a stock market crash.

Despite the fact that the Fed claims to be “targeting inflation,” this has not been the case until recently. So I’d have to say that the Federal Reserve has basically no ‘control’ over inflation, other from the possibility of slowing the economy.

What’s the deal with all the nonsense about “monetary policy”? It’s simple to talk about it in principle, but gaining complete control of the issue is significantly more challenging. Apart from the Fed’s previous record of raising the federal funds rate to combat inflation in the 1980s, there hasn’t been much else. They now feel that because it worked previously, it should work again….

In this day and age of electronic commerce, market control of Treasury bond yields, and quantitative easing, modern economists aren’t even sure monetary policy exists (coupled with the huge float). “The Fed can speak the game and possibly influence markets,” according to the consensus, “but action is a little more dubious.”

On a global scale, the stock exchange has been in decline since then. A substantial number of market skeptics and newcomers, on the other hand, are anticipating a “pullback,” a “retest of the lows,” or, worst, a “bear market rally.” This is a work of fiction that appears to be an outright overreaction to rising oil prices as a result of Russian sanctions, but no economist can justify that raising interest rates will guarantee offset of any difference if the US continues to print money in response to high oil prices and inflation.

As a result, there are very few chances in this world to get a second chance at something that only happens once in a lifetime.

Take a look at this as for thought.

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About the Creator

Estalontech

Estalontech is an Indie publisher with over 400 Book titles on Amazon KDP. Being a Publisher , it is normal for us to co author and brainstorm on interesting contents for this publication which we will like to share on this platform

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