Money is the Lubricant of Commerce… or Is It?
Money is a funny thing. It means so much to so many. “Money is the lubricant of commerce.” Or is it?
Ever wonder what money is? Is it value? Is it merely paper or metal with old pictures and sayings on it? Does money change over time?
Money for Commerce: I Have a Complex Wallet
I am a world traveler. What is the real value of the dollars (or Pound Sterling, Swiss Francs, or Euros) in my wallet today?
Why does a retailer (Business Owner) accept a piece of plastic with a bunch of numbers on it and then proceed to provide me with goods and services of my choosing? Ever wonder what and where the intrinsic value of money came from? Further, we talk about precious metals like gold, platinum, silver, and bronze as we always have, and worship them as something with “Value”. Why are these precious? What makes them “Valuable”?
Ultimately money has no value unless someone else values it. So the next time you reach for real or virtual currency to settle your obligations, simply marvel at the wonder of how the modern worlds transact business. It is much better to carry a credit card then it is a truckload of silver.
All of these have no inherent value at all. They only have value if someone else believes they will have value to others and that they will accept the transfer of your ownership to theirs (the item of value). Money and all of its alternatives are only useful for canceling debts to others.
Whether you are the farmer needing seeds and fertilizers or a manufacturer who requires metals and fittings you must settle your debts. And, with what? With money. But why money? Only because someone else will accept that same currency (money) to settle your debts.
Ultimately money has no value unless someone else values it. So the next time you reach for real or virtual currency to settle your obligations, simply marvel at the wonder of how the modern worlds transact business. It is much better to carry a credit card than it is a truckload of silver.
Now, what is a Bitcoin?
Bitcoin and other cryptocurrencies are disruptive technologies that are experiencing growing acceptance. As advisers and professionals, it’s in our best interest to embrace these changes and become familiar with the workings of such digital money to better help our clients navigate the digital frontier.
Daniel frequently provides Media Content via Workshops, Podcasts and Printed Articles on topics like Cross-Border Transactions, Wealth Preservation and Planning, Global Banking and many other high-level financial topics that serve and demonstrate the Value of our Global Network that should be of interest to those who need Private High-Wealth Services. If you wish for Daniel to speak to you or your Professional Group, please contact us.
Morris+D’Angelo is the industry leader for many High-Wealth Customers and Organizations.
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