What is a Value Storage Medium and why a Bank Account is NOT one.

avatar


Source

   We have all heard the phrase, Money Makes The World Go Round, right? Well it is the Value Medium that makes the Economy go round, more specifically, fiat. The faster the fiat goes from one hand to the next, the faster an Economy flows and grows, as they say (don't ask who, I just made that up...). Ever notice that the last Go Round seems to be, There Isn't Enough Money to Go Round Anymore? Ever wonder why? How it is stored.

   Gold was, and still is, one of the best methods for storing value, but what does that really mean? Most people don't understand this, but the reason for a Value Storage Medium is not so much as a way to store value, but in all actuality, a way to free up fiat to circulate again to bring in MORE! Let's say that Don Juan Cocaine King has amassed 40 Million dollars in fiat, to the point that no one has any fiat to give him for his product anymore. What's a Drug Lord to do? I mean, the snow must flow, right?! What Don Juan needs is a way to give the bills back to the people so they can buy more stuff without, you know, giving back his bills.

   What Don needs is a way to store the VALUE of his bills and put them back out to circulate again. Now, he can't put them in the Bank (for obvious reasons) and that wouldn't really solve his problem anyway. (More on that in a minute) Well, Don does some some digging and finds an online community called HideOnline and they have a fiat pegged asset called FlowStoWay, and Don cracks up an idea... He runs off and tells all his clients about this online community and tells them to get some FlowStoWay by any means neccesary, then, they sell it to him in exchange for all the fiat he has in the... cough ...place. And Bam!, Now his clients have cash for his... product... that doesn't need to have any paper trails, if you know what I mean.

   Now Don has a way to wash, rinse and repeat and get more than the 40 Million in bills that he had before and make it cycle faster than he ever could before. He just stores the bills in this Value Storage Medium called FlowStoWay and puts them back out to circle around again. As long as FlowStoWay is pegged to the fiat and he can find buyers when he wants to convert the stored value into some real asset, he can keep cycling till he can't count how much he's stored up.

   So, besides the obvious reasons, any guesses as to why the Bank can't solve his problem? Because a bank NEVER returns money to anyone except the depositor. If Don even could put all his bills in the Bank, the only thing that could happen is he could loan those bills to his clients, who would pay for his product with the bills loaned to them and then his clients would have no bills to repay the loans, AND, Don's bank would be in the hole for the bills that were loaned out and if Don went to make a withdraw, the bank would default and Don would be out for all his bills (bodies every, at that point, I would figure...) Even if the government came to the rescue and printed more bills so that Don could do more business, a Bank would only imprison the printed money as Don stacked it up and push the government to print more and more bills, or worse, use the Bank's bills and 'promise' the bills will be available, if the depositor ever wants to withdraw them.

   So, Hive has a Value Storage Medium called HBD. You take your collection of 'bills' and sell them to others for HBD and they get the bills to go and conduct business and convert the bills into some real asset. The person who gets the bills then sells the bills to someone for some HBD and someone else gets to take the bills and go exchange them for some real asset. Of course, if HBD isn't your thing... Gold always works, too.

I hope this gets you to thinking and helps you understand why a Bank is NOT a Value Storage Medium, but rather a tool that removes value from circulation. A Value Storage Medium is always a real or digital asset that passes the value to someone else to circulate the bills in other ways to other people.

hive-119826 ctp leofinance hive hbd proofofbrain neoxian
0
0
0.000
5 comments
avatar

Congratulations @michaelklinejr! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)

You distributed more than 600 upvotes.
Your next target is to reach 700 upvotes.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

To support your work, I also upvoted your post!

Check out our last posts:

LEO Power Up Day - May 15, 2023
The Hive Gamification Proposal
0
0
0.000
Reply
avatar

This is genius! Any time I read any explanation of Value Storage Mediums, I'll be thinking of "the snow must flow".
Thank you.

0
0
0.000
Reply
avatar

Thanks. This goes into showing one of the reasons that banks are partially responsible for inflation and why money seems so tight in the world. Not a perfect explaination, but one that I am sure is not considered, or handled, enough. It's not that Billionaires have 99% of all value in the world. Value converted to real world assets can stack to the moon. It's because too much of the currency is tied up in ways that don't return it to the trade floor.

0
0
0.000
Reply
avatar
(Edited)

Indeed! I remember a documentary about the City of London. Which is effectively an automonous state within the UK. Where their privileges have allowed tax havens in Cayman Isles, Bermuda, etc to suck money out of the UK economy.
Contrast that with benefit payment that immediately boost the local economy (or at least in my case).

0
0
0.000
Reply