Essence of money | 11 misunderstandings about money | How to print your own money?
Do you know It’s a crime to deface Canadian money in Canada, US money in US?
Why? It’s my money
No, it’s not your money. You only have right to use it, you don’t have the ownership.
Why? Let’s talk about what the money is.
Money is the paper, Canadian dollar, us dollar, chinese yuan? No matter if you like money or not, you won’t survive without money. So we must understand what money really is. Actually, Money is not money,
Money represents value, money is only a currency, it was shell, stone, silver, gold.
A money is a medium of exchange, and accepted by other people
Bartering was the way that people exchanged goods for other good before money created.
Money must be rare, it can not be unlimited, is valuable because it’s rare.
That’s why shells and stones are not money any more.
Money is credit
Current Fiat money is government issued currency that is not backed by a physical commodity, but by the stability of the issuing government.
So Fiat money now is a note, is a credit.
If the issuing government is losing it’s credit or stability, if the government goes bankrupt, it’s money will be worthless. It will be just a piece of paper, nothing else.
Above all a money is unit of account, is just an concept, not a real thing.
So money is only a way to exchange goods or services.
If you only keep you money in your safe box or your checking account without interest coming. It’s not your money. It will be your money only when you are using them to buy car, house, grocery, even loan them to other people.
Because of the inflation, you are losing money if you don’t use them. Take a look the following misunderstanding about money and tell me how many you still think it’s true.
Rich people only have more money
If I have more money, my situation will be better
People get rich because of windfall
Money is dirty, only low level people like money
It’s a shame or fear to borrow money from others
Money Anxiety or Anxious
Money means security, A good salary equals financial security or a big income will keep me out of debt