Ever think about how banks get large amounts of money to lend to consumers or businesses? Seriously, think about it. A home that cost $300,000 and the bank lends it all to me so I can acquire the house. A car that cost $20,000 and we as consumers have to work extremely hard just to pay back money that we never even seen plus interest. Truth is, money has no value and is also worth nothing. It's called Fiat Currency.
Fiat Currency
By definition, Fiat currency is a government-issued currency that is not backed by a commodity such as gold and has no intrinsic value. Once upon a time the US dollar had value. However, up until 1971 President Nixon announced it would no longer be backed by Gold (Nixon Shock). Yet people still kill for it. In other words, the value of money is created by the people. For example, Balenciaga thinks their overrated bulky shoes are worth $800 so they'll sell it for that price. Someone who doesn't like it would rather buy it for $30 because they don't see the value. Let's say you make $10 an hour. It took you 80 difficult hours of your time to buy those expensive shoes. That goes for any purchase. Bitcoin is worth way more than the US dollar.
Here's a quick Video that explains the process
Money is a tool that allows consumers to exchange goods and services. We exchange our precious time that we can truly never get back for money. There is a trick as well... WE can make money out of thin air too. Stay tuned...
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