Re:Mt. Gox Files for Bankruptcy Protection
by dragonwriter on Friday February 28, 2014 @05:55PM
(#7322103)
> That sounds very smart, however if your money is held in an FDIC insured bank, then it's likely to be in a national currency that is systematically devalued by the issuing institution through progressive year-on-year inflation.
Which may be a good reason to limit currency holdings to what you need to use as currency (that is, short-term medium of exchange for things of value), and invest the rest in productive assets, whether those are stocks, bonds, real estate, or digital collectibles like internet funbucks. But if you aren't directly holding those productive assets yourself but are trusting them to account held by someone else who promises to transfer them to you on demand or dispose of them at your direction, you probably want to do some consideration of their ability to keep them securely and execute the trust you are placing in them.
Which may be a good reason to limit currency holdings to what you need to use as currency (that is, short-term medium of exchange for things of value), and invest the rest in productive assets, whether those are stocks, bonds, real estate, or digital collectibles like internet funbucks. But if you aren't directly holding those productive assets yourself but are trusting them to account held by someone else who promises to transfer them to you on demand or dispose of them at your direction, you probably want to do some consideration of their ability to keep them securely and execute the trust you are placing in them.