If you look at the history of the world, people have always been worried about one thing – the future. When the agricultural revolution happened, people didn’t know whether their crops were going to grow again, and they always produced more.
Just in case of a drought or a flood, those extra resources helped them get through. However, there has also been a silent war that not a lot of historians have noticed, even though everyone is affected by it up to this day. The conflict happens every time you go to the grocery store, and you see that the price of bread has increased by half a dollar.
The same thing happens when your bills come, and they’re higher than they used to be. Everyone faces this problem, and no one knows how to handle it. The electricity bill increased by 20 dollars, the water bill got higher by 10, and heating is an extra 20 too. You can go to this link for more information.
It feels like it suddenly happened. You’re working the same amount of hours at your job as the week before, and yet the cost of living has silently increased. This is the big fight between money and currency, and if you don’t have a surplus of money, it might be difficult to get through the month.
This battle has been happening for centuries, and people have always put their faith in paper currency instead of gold and silver, even though precious metals always win. They revalue themselves all the time to stay on top. The biggest thing you need to understand now is the difference between currency and money.
How are money and currency different?
A lot of people think that these two terms represent the same thing. Let’s say that you’re a teenager and your grandad give you a hundred-dollar bill for your birthday. That’s a paper bill, and it’s cash. You probably thought at that time that you had money.
However, you just had a momentary representation of money that could be switched in value. Here’s how that works. The word currency has its root in the word current, which means now, or it can also mean a body of water that’s moving. Visit this page for more info https://www.sciencedaily.com/releases/2021/10/211004140300.html
That could be a river or the forces under the sea. It can also represent electricity. The thing in common between all of these phenomena is that they’re always moving. If the river stops, the current will cease to exist. The same thing is true about electricity.
In that view, the currency is just a method that we use to exchange, buy, and sell things or services. Whatever we determine as an asset can be worth a specific amount of dollars. Unlike currencies, money has worth in itself. Instead of being a method, it’s a form of exchange, and that can be used to buy even more valuable objects, goods, or services.
In this case, these are two different terms. Currency can be money, but that’s not always the case. Let’s go back to the hundred-dollar bill example. That bill is not worth a hundred bucks. It’s just a representation that there is money somewhere, presumably the bank, that is worth that amount.
It makes sense for the dollar to be worth an amount of gold. That was the case before the 70s, and it made a lot of sense to everyone. However, when the standard was abolished, the currency of the largest power of the world was based on good faith and credit.
This means that there is nothing backing up the money we’re using daily. This metal resource might be of help to understand better. Now, the government can create as many paper banknotes as they want since there is no higher power that can control their behavior behind closed doors.
When people are in a position of power, they always want to abuse it, and that’s why counterfeiting has always occurred. That’s why a lot of investors hate fiat currency which is an arbitrary declaration, command, or proclamation. The money we’re using now is enforced by the government, which means the entire world is running on fiat.
Why is this important?
Securing your future is the most important thing you can do now. The general concern of the public should always be how to preserve the most wealth into the future. The lack of awareness is alarming, and the only good news in the past decade has been the rise of precious metals IRAs.
These institutions have the potential to make their clients the wealthiest individuals by historical standards. Most people don’t pay attention to the type of IRA they’re choosing. A simple checkbox can have extreme consequences in the future, and it’s crucial that you select the best one.
Why are gold and silver always the winners?
Throughout history, there have been plenty of attempts to function on a soft form of money, which is represented in fiat currencies. After a few decades, the free market always selects the best possible tool for a specific job. When it comes to the job of money, the best bet is always on silver and gold.
They cover all of the aspects, and most importantly, they’re deflationary assets. This means that they’re always worth more into the future rather than in the moment. For that reason, the dollar will always be beaten by precious metals, even though its purpose is to be a representation of wealth.