What is MONEY?

Have anyone thought of what MONEY really is? where did it come from? let me share my OPINION on this topic.

But first what is Money and how its' been used?
Once upon a time, people uses money to exchange for items of the same value. it can be anything livestock, rice, sugar, salt, gold, silver etc etc. it derives from hard work like mining for precious metal, farming, hunting etc etc. so what determine the value of money? scarcity and hard work. Example: precious metal, in order to get precious metal miner will have to look for mine and dig for it and this process requires a tremendous amount of hard work, energy and time and it is very dangerous too and hence, the value of this precious metal will definitely be higher as compared to other things like hunting for rabbit, birds etc. of cause every job has its' own difficulties and challenges. what i want to emphasize here is that MONEY doesn't come easy.

MONEY have 7 features which is it's a medium of exchange, unit of account, durable, portable, divisible, fungible which means my 1 dollar can buy the same amount as your 1 dollar and the most important thing STORE OF VALUE. So from the example i mentioned, gold and silver fits into this criteria. They can be use as a medium of exchange, you are engrave no. on them, they are durable, you can carry them around, you can make change, a piece of my gold can buy the same thing as a piece of your gold and they have store of value.

So what really is money? It must have 6 features like i mentioned and store of value. Example: If MONEY were to sink into an ocean and after 100 years the value of this money remain the same or even more. However this changes, after thousands of year, money is not money anymore.

Fiat Money or Currency
Today our money is FIAT money which means if government were to declare today that they're going to print 1 billion as legal tender then this fiat money will be circulated into this society which means value of your so called money WILL DROP plus this fiat money is back by NOTHING. ALL FIAT MONEY IN THE WORLD IS BACK BY NOTHING. Do you know that in the past, most fiat money in the world is pegged to US dollar? and US dollar in the past is back by gold? well not anymore now. let me use the same example: if this fiat money were to sink into an ocean after 100 years do you think its' still worth the same? NO. Research have also shown that it's a 100% failure in fiat money this will happen in a matter of times. It could be 50years, 100 years, 200 years i don't know, but the important point is IT ALWAYS FAIL! NON-SURVIVE!

So what can you do to protect and secure yourself financially?

1 way: SPEND IT ALL! because you wouldn't know your dollar today can buy how many things in the future. Today you can use a dollar to buy a coke do you think a dollar in the future can buy you a coke? SO SPEND IT ALL NOW!!! NAH... I'm just kidding the best way to protect and secure your dollars are...
1st: Invest in your financial knowledge, educate yourself and Invest with caution, today the most dangerous concept in my opinion is to SAVE IN THE BANK, of cause I'm not saying invest all your dollar, but invest your EXTRA dollar. What i mean is that save only 6-12 months of your expenses and INVEST the extra dollar you've got with CAUTION.
2nd: Plan and manage your finance well.
3rd: Delay Gratification

Last but not least, Your Greatest Asset is neither your car, your house or the dollar in your pocket. IT'S YOU! AND YOUR BRAIN! so take good care of your ASSETS and stay healthy stay wealthy.

below is a youtube link on how money and banking works please visit the link if you're interested

How money and banking works