• Ruchit Shah

How much should you value the currency in your wallet?

Updated: Jul 4, 2020

If money is beer, the currency would be the glass it comes in! Every nation has its currency so you can go to a bank and get money out in the form of notes.

The notes just represent money. Like in the old days, gold represented money but these days notes just represent the IDEA of money.

[1] Money is just a tool for trading your time. It is a container to store your economic energy until you are ready to deploy it. But the whole world has been truly away from Real Money and been fooled into using it in the form of Currency, which is silently stealing your two most valuable assets Time and Labor. This is what people are in need of, so the currency is what they are willing to trade in exchange for you providing a service of time and labor.

A fictional movie "In Time" took it a little further in which they used time as an exchange of medium. You can earn time, spend time, sell time, loan time, and eventually when you are out of time, you die! So you can spend time playing games as it cannot benefit others unlike you are Pewdiepie where you can earn while doing that too.

Image: pinterest.com

Egypt used gold & silver as their predominant use for the exchange of goods and services and not money. As it was not interchangeable like the currency of different countries.

Eg. A 100 Indian Rupee Note is valued differently in different countries. Whereas, 1kg of gold in India is worth the same as that of in any other part of the globe. And that trade for 1kg gold will be in form of Currency as it is a medium of exchange, a unit of account.

Currency is portable, durable, divisible, and fungible (Interchangeable).

Money is all of that, along with a store of value (which retains its value over a period of time).

Currency is a unit of account because it got numbers.

A 100 Indian Rupee note in my pocket has the same weightage as in your pocket.

Now if you get back to the 2nd paragraph ref. [1] of this blog, you will understand those better by considering gold and silver as money. :)

So we talked about Egyptians used to trade in gold and silver, which they considered as a store of value and exchange of medium.

Lemme give you a simple example. We all are well versed by the inverse relation between demand & supply.

It demonstrates the price hike of gold due to a decrease in supply, availability over time.

Well I am not here to convince you to buy gold (Stock market guys might kill me, LOL)

But get the facts straight, a person can come live at 8:15 pm on a casual Tuesday, announce to demonetize/shake/change the currency chain of a nation worth 1.3B population within 3 hours.

Overnight notes worth Rs.15.41 lakh crore ceased to exist.

#JustThink: So now you are thinking to convert all your currency into money to make it worth again? Well, so you need to buy out every last piece of gold on this Goddamn planet. Just for 1 second think about the price that hiked to buy that last piece of gold!

Image: img.etimg.com

Nowadays things are different, prices of gold and silver are increasing and the goods and services that we use are not worth that much. You don't need to trade gold for or purchasing food, clothes, transport, services and you know the rest!

So it's on you to wisely invest or spend on any materialistic goods.

There is a lot more, will be covered in further topics!

- Ruchit Shah


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