Topic: True wealth and fake wealth (Read 1407 times)

Lots of people save money in banks, that doesn't make sense to me, banks do not give a good return on your money so there is no reason to keep your money in banks, but yet people still do it and that's the most common way of saving money unfortunately. Hopefully, one day people will give up on that and realize that even bitcoin, no matter how volatile it is, could be a better method, but there are also other methods as well. It could be bonds, it could be stocks, it could be gold, anything really.

All of them are better than just collecting interest at banks, because more often than not, interest you get from the bank is lower than the inflation and that means you are actually getting poorer and not getting richer. There are way too many people who do not understand the fact that just because your amount is growing, doesn't mean you are getting richer, if it's growing slower than inflation, even though the number is going up, the purchasing power of it is going down, meaning you are growing poorer.

I believe this are ignorant people. No one  with good understanding about how the centralised system works will want to give full access to how they manage their funds to an institution who will be willing to freeze the account at any moment. Do you know how people get frustrated due to bank limitations and all. The idea behind the decentralised finance is having full custody of your assets

Not your key not your coin. The coin in your wallet is as safe as the food in your stomach, reason been that as long as your your private keys remain in compromised you can have your funds in your wallet for eternity. Let's say the value of a bank asset goes below the market value in such case what will you do?

When we save money in a bank, they will be fully responsible for everything, no matter how much you withdraw, they will still do it because it is their job, but it is possible that the duration of the disbursement will take quite a long time, but that doesn't mean they won't do it, right? Moreover, saving money in a bank has become a tradition in all countries in my opinion, the money they save in the bank will be guaranteed safe because there is a clear security guarantee.

I once found a local bank that was having problems with its company and this was in the news because there was indeed a lot of other people's savings there, but it is also impossible for the bank not to be responsible, however they will definitely be responsible for the money saved by the community because that means they have good hopes for the bank.

However, those who still trust the bank too much also do not realize that the money they deposit in the bank can be used by the bank for other businesses that can generate profits for the bank and try to withdraw large amounts of money in a day when you need a large amount as soon as possible, the duration of the disbursement will definitely take a lot of time and the owner of the money must also provide a very logical reason for the bank even though it is his own money.

In addition, from several cases that have befallen banks such as bankruptcy and also being hit by disasters such as fires and having their systems hacked, this can also be used as a reference that saving money in a bank is not completely safe from these things, even though the bank is willing to take responsibility for any incidents that have befallen it unexpectedly.

I believe you know that people still prefer to leave their money in the bank than leaving them at home or in decentralized currency because they have full assurance that if anything happen to the money in the bank, he or she will hold the bank responsible which they will definitely provide the money, but if anything happen to the money in your home or wallet, you have nobody to hold to account for it, and there is no way to recover the money back, As a wealthy man or woman, you cannot live without having huge amount of money in the bank or assets because you know that any emergency can come up for you to solve with cash.

It's all a perspective of something that really doesn't matter. A zero to your net worth can be added through hard work, or little to no work. Friends won't care about how much money you have, they'll judge you more on how hot your wife is. That's how you'll be remembered. It's for the most part, true.

How do you mean by saying land,sticks and the rest of them are categorized under fake wealth? And for true wealth you mentioning food, like I don't get it. Such comparison doesn't worth it.and if I'll want to say something in this regards I think for fake wealth you can find things that ain't durable like things that can't give an end product but true wealth will sure give you an end product like land and shares.

I want to give this explanation through another perspective because I know quite well that people do have a fake wealth and for them to have such they still have a back up, so what I'm trying to say in nutshell is that you can decide to fake your wealth, and for you to do that you have plans, but for me, I think that it's good for you to fake your wealth to get what you want

I think real wealth is what you can hold. There are many things which you can hold and you can be rich if you can  use your mind effectively . Always you have to learn because it can make you wealth person in your family. If you are running any business and you have real money and you can sell it any time and if you don't want to sell the business then you can actively grow this business. There are many fake projects in the market and they runs the campaigns and after they don't give benefits to investors . Real estate is best opinion if you have more amount of money.You can sell it but it will take more time if any emergency happens and you should  learn facts and figures of economy of you want to get real money.

Land, Property is real wealth. Some advice from OP from a person who is not rich and his realities.
Today, wealth is known as knowlodge, wisdom and other wealth definitions. As for investments, limited assets, stocks, almost all of them being in the circle will add true and real wealth to you.

There is a lot of wisdom in that, basically you hit the nail on the head with many things, in investments and money when it moves with business it is obvious that it will always generate more money, it will generate employment and that is what really gives rise to your economy to grow one year, if you do things like that, when a person pretends to be what he is not, and gets luxurious houses and the latest model cars, there will come a time when if he does not work he will make money ,  then it would become his guillotine, because he will have to sell everything to be able to pay his taxes and the expenses that having those luxuries entails.

Hahaha you are very silly   where do you got this orientation from? I Doubt if you know what you are explaining. How can you classify land as a fake wealth and classify physical paper fiat as true wealth?
Well if you don't know , know it from now that anything capable of generating money for you is an asset or real wealth as you formally callee it, but whatever that doesn't yeild profit for you can be described as a liability. For example

1. Land: is an asset but a physical asset because it add value in due time wether you invest on it or not. But if you chose to build house for rentage and rent it out for people it will add more value because it will yeild profit annually. Or if you use it for livestock farming, it will still be an asset.

2. Bitcoin investment is anoter asset but a volatile one which means it's wealth is under probability. Which means you either make profit or lose as bitcoin price changes but will preferably be good to hold for a longer time because the theory of making profit from bitcoin asset is to HODl for long. If you sell too quickly you may sell at lost but yet it is still an online asset.

Investing on stock and bond is still ok, just that you mixed everything up, if not you came up with some decent idea.

Food at home is not a wealth rather a necessity of life. But doesn't classify it as wealth.

Fake wealth will not allow you to enjoy the wealth so long before you will be coming down to square zero hope you know that, while the true wealth that came from a genuine source will continue to multiply for you to enjoy long wealth without having the fear of going back to square zero in the future. Meaning, if your friends introduce you to rubbery or fraudster to get wealth, you will join them to get wealth in such way which is what I refer to fake wealth, because the day you will be caught in that rubbery or fraudster by the police men, it may end your life. You can also get true wealth from land and properties, because is a good investment people are using these days to get wealthy, because people need land everyday to build houses or company to develop the community.

While this is a great idea, it can be said that things with the dictators are excellent when the country as such respects and accepts such organizations, if it is an app that is on the way to becoming socialist/communitarian, this is very possible that it will die and remain as a great idea, I say this from my own experience in my country, things happened like this, and all the unions are practically dead, in fact, many of those who were in the unions left the country to work in the USA cleaning bathrooms, washing dishes and leaving their professions aside.

True wealth and fake wealth have some similarities to people that aren't wealthy or can't distinguish between them. There's no need in wanting fake wealth when you can work towards getting the real wealth through hardwork and investment and after getting the wealth, you can then enjoy being wealthy. After working tirelessly, don't forget to put the money you made into an investment for some years to help make you more money. Rich neighborhood have lots of fake wealth people that are pretending be rich because we have poor people's disguising as the rich to mingle and feel what it's like to be rich. Real wealth don't need to make noise before you can recognised its presence. When you're not rich yet, don't fool yourself by telling people that you're rich. Instead when rich, claim to be poor as it'll help you avoid enemies and without many enemies you won't have obstacles to wealth.

There has been a lot of research when it comes to the way we learn things up, and the evidence shows that if you get immediate feedback related to a topic you wanted to learn, then your learning will be many times faster than if you did not received any feedback or if it took a lot of time to receive it, this explains why people are so slow to learn anything about their own finances, since the decision to waste their money in stuff they do not need will only come to haunt them until many years later, when they may have used that money to get them out of a difficult economic situation, and it is precisely because of this that we need learn how to manage our finances on our own, as this will save us a massive amount of money through the years and it will allow us to retire early and more comfortably.

More than just an idealistic one, there are a lot of people like me who thinks this could happen and do not want to invest into centralized one. You may think "why would they" but as long as humans are involved, anything could happen. From something as simple as "they will steal all our money" type of thing, to "government will freeze their account so they can't pay us" type of thing, there are a million reasons.

I cannot give you an exact reason what will happen because nothing has happened yet, but there are many possibilities of why they may not able to pay us, and this is why I fear them and do not put any money into them. So this isn't just a preference, I do not use decentralized ones neither to be fair because I am against this all together, but at the end of the day we are going to see stablecoins which are centralized are much worse and there is no reason to use them. The best way to move forward would be focusing on what you already used.

I guess it's more like an idealistic choice to prefer decentralized coins. No one seriously think that they would be the ones being affected by centralization and freezing funds, but ideologically decentralization is about same thing as us 2dn amendment. It's a tool for fighting, in case government ever turns against their people. Not just against their criminals.

But in both cases you are up against a country with an army, so unless that army divides too, i can't see that as a winnable fight.

Those centralized stablecoins are said that they can freeze or hold people's fund. But what could be the main reason of doing so? It is not that they're just going to do it randomly without any reason. One of the most typical reasons why they're going to freeze people's fund is if it comes from hacked funds. So, this is a way to maintain the control of the money that has been embezzled by the hackers to stop them from trading it.
Like this scenario: Tether freezes $5.2M in USDT linked to phishing scams

Although we don't like to get into centralized stable coins but the demand speaks for itself and people are still using even having the knowledge that stable coins like Tether can freeze people's asset. Btw, there are some of the stable coins that we can use that are decentralized like DAI. I don't know if there are some others but that's I think the community's choice if it's about the decentralized stable coin.

But in case of a natural disaster, you can lose everything, and if you keep a small part of the money in the bank, in your account, from which you can pay for purchases using a bank card, then this will not be superfluous. I myself used to be against dealing with banks, but in the end, I keep some insignificant amount in the bank, sometimes it is convenient for some small payments for food or services.

Rich people also do not keep a lot of money in the bank, their money works in their investments and their businesses, this can be called real wealth, when your money works and brings income. And fake wealth is when a person has a big house, beautiful cars and many other material values, but all this does not belong to them but is in a mortgage and they can lose it all at any time.