Quote from: Inwestour on Today at 12:54:33 PM

Quote from: Uruhara on July 13, 2023, 11:24:38 PM

Well, the higher the price of goods on the market, the lower the price value of a fiat. That is why those holding fiat will increasingly lose value due to eroded inflation. But holding fiat cash is sometimes necessary for emergencies because it's easy to use. And yes, for the lower classes of society at this time they are only struggling to survive by meeting their daily basic needs. Everything they buy is essential things for survival like food for example. for the middle and upper class, maybe they can still overcome the current conditions. and they can still invest and save. because the middle and upper class usually always produce more than what they need to buy. It's just that there are also middle class people who live extravagantly and always buy things they don't really need.

Therefore, the poor do not have to worry about holding fiat and how best to do it, because they simply do not have that much fiat, since they spend everything on food and basic necessities.

Those who can save something will keep fiat, at least some part in the national currency, and some reserve in a more stable currency. And other funds will be invested somewhere, either in a business or in real estate, this has always been a good decision, as it will contribute to further income. For the rich, there will be an even greater opportunity to diversify their finances, perhaps into gold or bitcoin, as their income may allow them to do so. The more you can distribute investments in different directions, the more protected you will be.

You are right. Because people who are not financially capable they only hold fiat for a short period of time. sometimes at the end of the month they receive a certain amount of salary and a few days later the money is used up to buy all the necessities and pay some bills. So they sometimes don't have a chance to hold on for a long time. because the money they hold will be directly used for their daily needs. and the circulation of money among the lower classes sometimes runs faster than among the above. Flow in and out among the bottom so heavy. Physical Fiat is of course the most dominant used by the lower classes. because even among them there are still many who do not have smart phones that support digital payments. or even they don't have time to learn about digital money. they just focus on working every day to make money.