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.
