conceptually holding more cash than you can usefully spend reduces your cash value and doesn't have to happen with inflation
I remember Buffets letter to shareholders apologising Berkshire Hathaway wasn't able to continue delivering the same historic returns because that trajectory would require them to own every publicly traded asset in the world after ten more years.
even now you can potentially eliminate the major inflationary risks by holding property without debt and rely on policy consumer price regulation to hold basic necessities in check but I personally think that energy risks and not only exceptional weather events put that out of contention for sanity sake. In fact if energy infrastructure and general infrastructure development is increasingly critical for the future it makes little sense to have a cash savings incentive in the economy despite this is unfortunately not a explicit case for the generational savings deprecated in a way that I readily appreciate.
edit to remove accidental negative from I personally [don't] think that energy risks....
This seems more like chasing yield and less like cash losing value or being a bad asset. Cash obviously has benefits to hold and that isn’t changing soon.
absolutely agreed I'm all cash since 2018 in fact, which is why I'm sensitive to the cost of that liquidity.
I noticed a comment sadly without details reporting a third party obtained a crypto collateralized 7 figure loan obtained in a matter of minutes which interested me enough to plan a new survey of the infrastructure in the market. I'm personally interested in pending short term 5 figures as a business. but only if I can figure out how report to credit agencies specifically for positive feedback and I am only interested in non secured lending but whilst holding the underlying as the custodian. unsecured loan performance is a particularly valuable credit record history especially in the present volatility. the model I wish to pursue is to provide liquidity for trading traditional instruments and by acting as custodian for both crypto and trad assets, providing as USP analytical tools and guaranteeing fills on quotes from my ticker, acting as guarantor for the trades to a mainstream financial or bank. I won't go into the model but it does include kicking back fees from my prime broker for the volume and transparently revealing the collars around the spread enabling truly immediate liquidity and real time netting. hedge strategy p&l to benefit customers when closing in the market thereby paying every customer for anything that they left on the table excess for buying the liquidity.
Given that all of those things have increased in cost at rates far beyond 2%, I don't really see how you blame that on the inflation of the USD as a whole. They have their own systemic problems attributing to their astronomical costs.
> Given that all of those things have increased in cost at rates far beyond 2%, I don't really see how you blame that on the inflation of the USD as a whole.
My point is inflation isn't being measured in a way that actually matters to people worried about more than buying groceries and a new laptop.
If all those things were included in the measurement inflation would be way over 2%.
I remember Buffets letter to shareholders apologising Berkshire Hathaway wasn't able to continue delivering the same historic returns because that trajectory would require them to own every publicly traded asset in the world after ten more years.
even now you can potentially eliminate the major inflationary risks by holding property without debt and rely on policy consumer price regulation to hold basic necessities in check but I personally think that energy risks and not only exceptional weather events put that out of contention for sanity sake. In fact if energy infrastructure and general infrastructure development is increasingly critical for the future it makes little sense to have a cash savings incentive in the economy despite this is unfortunately not a explicit case for the generational savings deprecated in a way that I readily appreciate.
edit to remove accidental negative from I personally [don't] think that energy risks....