What you've been spending to buy all the goods you have now ISNT MONEY

what you've worked tirelessly for years in your various shift jobs, white or brown collar ISN'T MONEY

What you have saved right now in your bank account ISN'T MONEY

what you are taking to the market right to buy food stuffs now ISNT MONEY

IT'S CURRENCY


...and when you come to understand the difference between the two, you'll then come to know that you've been chasing the Biggest Illusion of the Financial World -- the very main reason the saying "the rich gets richer and the poor gets dumber" was coined from

It has all been one Big Financial game that relies on the ignorance of its core players-- YOU.
You've all been left out from winning...UNTIL NOW

***************************************

THE GREAT PEAK INTO THE SECRET FINANCIAL WORLD:


There is a difference between money and currency and for a commodity to become MONEY, the chosen commodity MUST be:

1) PORTABLE
2) FUNGIBLE
3) A STORE OF VALUE
4) DIVISIBLE
5) SALABLE
6) SCARCE
7) DURABLE

1) PORTABLE: Easy to move from one location to another

-- The naira is light weight and can be kept comfortably in your pockets and handbags compared to heavy gold bars and coins hence it satisfies the requirement of portability


2) FUNGIBLE: Interchangeable with any other unit of money of the same value

-- Although the naira is interchangeable with other unit of money of the same value (#1250 - $1), (#1400 - €1) the americans and Europeans dont want our naira!

Why? ITS USELESS TO THEM

a) The Naira doesn't serve as a store of value

b) Naira isn't used to purchase anything tangible in the international Market because Nigeria doesn't have any export apart from oil and thats not even tangible enough.

and guess what?

even the oil produced in Nigeria IS NOT SOLD IN NAIRA but IN DOLLARS hence other countries are not willing to store Naira as a reserve cash.

This concept is what gives the dollar its value and why countries all over the world demand the dollar-- all countries need crude oil AND CRUDE OIL IS ONLY SOLD IN DOLLAR IN THE INTERNATIONAL MARKET.

sleep on that


If naira was being demanded for our crude oil, naira would gain in strength due to the increased demand by other countries

This sounds all good at first BUT we are not the only country with crude oil as its natural resources.

By the time other countries start demanding their country's currency for sale of their oil, there'd BE a BIG PROBLEM

other countries with sweeter and cheaper crude oil will distribute our oil demand hence taking us back to square 1

the US dollar seems like the necessary evil UNTIL --

https://www.nairaland.com/8075867/naira-still-pegged-dollar-freedom


3) STORE OF VALUE: If you save in naira or you receive your salary in naira AND RECEIVE IT AT MONTH END, you're being played

The #1000 you saved last month has become less than #600 now.

sure you'd still have the physical #1000 note, but going to the market, you'll find out that its purchasing power has reduced drastically

Then you'll come to understand something hidden from you all these while: The price of goods in the market is not going up!

No!

Its the value of money thats going down. Thats the very reason you need more money to purchase same goods you previously bought

And that right there is Inflation
https://www.nairaland.com/8049624/wealth-series-pt-1-inflation

4) DURABLE: The naira does not wear and tear easily. That's because it isn't made of ordinary paper like your book notes, but its made of a refined kind of material which the CBN writes about in its website and i quote :

" The Central Bank of Nigeria produces paper and polymer bank notes. The paper is made from a substrate which is the byproduct of cotton called COMBER. The polymer bank note is made from polypropylene pellets melted to a particular specification. Although every country has its specification, the polymer bank note is known to have a lifespan that is 3-4 times the lifespan of the paper bank notes"


5) SALABLE
Others must recognize it as money and you must be able to exchange it for goods and services

-- Naira is only primarily recognized in Nigeria. There is no country that keeps the Naira as a reserve currency. Even the Nigeria Government have dollar reserve!

sleep on that!

Thats because Naira loses its value easily and all that's because of the elephant in the room as i explained here

https://www.nairaland.com/8081414/nigerias-inflation-state-federal-governments

and if you really observe, most Nigerian traders would prefer to be paid in dollar over naira EVEN WHILE IN NIGERIA

and same way Nigerians reject the naira and prefer other countries currency IS SAME WAY Americans reject their own dollar and prefer payment in crypto, physical gold bars, stocks and government bonds

that should tell you whats up.

6) DIVISIBLE: Easy to break apart for smaller transactions and easy to combine for larger transactions without losing value.

-- Although the naira can easily be combined for larger transactions without losing value, the naira doesn't meet the second requirement

You doubt?
Lets break down #100 note

-- #50 + #50

Now lets break down #50 note

-- # 20 + #20 + #10

and lets break down #10 note

-- #5 + #5

Now thats the problem there staring at you.

You cant easily get #10 and #5 notes.

This denotes the level of inflation in Nigeria's economy-- unlike in America, cents is being used. While in Nigeria, #5 and #10 notes are slowly becoming relics of the good times we once enjoyed

6) SCARCE: The Naira is not scarce. And that's the ugly beauty of Fractional Reserve Banking in a Debt-based economy as i explained here

https://www.nairaland.com/8069458/wealth-series-pt-2-nigeria

https://www.nairaland.com/8080394/nigerias-inflation-what-uba-gtbopay

Thats why Nigerian Millionaires DONT SAVE in Naira, instead choose the Dollar.
And why American millionaires dont save in dollars, instead chose gold, and crypto, government bonds and stocks to save their wealth.

Even the corner stone became the rejected stone.

Ta-da! Now youre a part of the Financial Inner Circle


And watch out for my other unreleased topic:

" The Scam of Your Monthly Salary And Ajo Contributions"


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