All of us utilize it, it is the common approach we take to acquire services and goods on a daily basis. We trade our here we are at it. We depend on it to provide for our future, stash it away in thought it'll continue to have value down the road. It can be our currency whether it's Dollars, Euros, whatever, but it is not as trustworthy as you may think. Look We are certainly not a professional financial adviser or guru in all forms, but I want to explain to good my ability; that you can start looking at other styles of investment to secure your financial future.
Fiat currency
All national currencies are called fiat currencies. What does this imply? Well Investopedia's concept of a fiat currency is:
"Currency that a government has declared to become legal tender, but is not backed by a physical commodity. The value of fiat cash is based on the partnership between demand and supply rather than the price of the fabric the cash is made of. Historically, most currencies were based on physical commodities including silver or gold, but fiat funds are based solely on faith. Fiat will be the Latin word for "it shall be".
Although, that piece of paper you carry in your pocket is precisely that, paper that is determined by your faith that it's going to still need exactly the same purchasing power tomorrow since it has today. So what exactly is wrong with that?
Fiat currency, unfortunately, has already established a lengthy reputation failure. Since the Roman Empire in the first century began together with the practice of debasing their currency (adding impurities for their money thereby decreasing the value but enhancing the amount of currency in circulation) it's resulted in devaluation and eventual collapse.
Are you believing that it couldn't be happening today, I am sorry to say it is. Our history has received several failed attempts at using paper currency and fiat currencies haven't ever became popular apart from political systems trying to steer clear of the debasement of the currency by allowing the printing presses run amok.
It's not all doom and gloom though. I'm also not implying this will save everyone, in case you look at countries like China that are stockpiling in gold, maybe we should follow of their footsteps? Everybody knows that gold is efficacious and there's only a lot of it on the planet, this enables it more stability than fiat currency. Gold has shown an even growth in its life-time.
Like I said I'm in no way a professional financial adviser, I'm just stating my head and the way I'm. And I believe there's a definite transfer of how a world economy is moving right this moment. I cannot say if it is going to take place tomorrow or in the next 10 years, but I am certain that it affects. So maybe it'll be a good idea to develop a secure foundation to your financial future. Hope for the best and get ready for the worst.
