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by diegocerdan
2014 days ago
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The amount of human work possible is limited and so are raw material. By investing you are giving somebody money that when used will make access to those bought resources more expensive to other agents. That is why in the perfect system you don't want to put "all money to work". You want the perfect balance between investing and saving. Savings allow you to preserve your value into the future till you detect a worthy investing opportunity. Sadly enough, the present world has lost most important tools to save and preserve value: money and government bonds. Thus obliging all agents with value into risky investing instead of safely save for the future. The situation explains why gold and Bitcoin soared last decade: economic agents need some store of value to park their savings. |
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