Business and Finance Analysis

You know, really, what is money? Do you know how to create the same?

Surely many may have a vague idea, but will feel really amazed at the complexity of the issue. At the time I also did a little definition or answer to those questions throughout the book I realized it really was a total ignorant about what I thought I knew.

With this last expression I leave a short “snack” on the money, I mentioned the concept of “thought he knew” and there precisely lies one of the main problems of money paradoxical.

The money is “a belief based on another belief” that simple piece of paper or coins is simply a belief on our part that we believe that for others is important. I propose a short exercise to better understand what I just mentioned:

Suppose you because of a plane crash ends up as a castaway in the middle of a desert island. Already for a few days began to despair, is just that even Wilson (friend of the famous ball in Tom Hanks movie “Cast Away) can help. Suddenly the water floating currency in two suitcases that happen to be yours.

In one is about $ 200 million, in the other a new cell always sign because the company is the best in the world. But there is one small problem midway between the two bags is a shark and you know that your ability to reach a cease only spending all your energy.

Which would you choose between us really?

Obviously you choose the phone to call someone urgently to rescue him before he dies of malnutrition. But let’s think about another point beyond a theme is survival. Think about that bag full of green bills stacked in small packages would not help anything at all except to make a fire when winter falls.

There on the island completely deserted, you will have a beautiful bag full of receipts that have no value except for yourself, even over time will doubt them. On this island … no one else who believes in the value of money, that money then there.

This example demonstrated that the money actually has value because others believe in it. But if you ever think that people change the tickets on cigarettes, you will have in the bank a safe full of “slips.”

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