Do you still remember this old money ? If your hobby is collecting coins, you could have a few old coins and notes. The older the coins, the more historical value it could be. Nevertheless, do you think this value of paper note are valid until nowadays? The answer is NO.
Why these paper note are no valid? Because it was created by the government or rulers during that time which are falling due to war, invasion, bankruptcy etc. People are suffering because they do not have something value to buy food and necessities. Can this tragedy happen to our time as well? It could be happen in any time. As a result, the notes are becoming as same as "toilet paper" because the values are not valid.
Some of the country are facing the situation of hyper-inflation. The example of country that suffering are the state of Zimbabwe. Their money becoming less and less value. For instance, RM10 note are equal value to 10 cents. The government of Zimbabwe cannot do anything, the only way they have is to copy out more notes to save the states. But is this the best solution? There is no other way unless the state have their own reservation such as gold, silver, oil etc.
Why these paper note are no valid? Because it was created by the government or rulers during that time which are falling due to war, invasion, bankruptcy etc. People are suffering because they do not have something value to buy food and necessities. Can this tragedy happen to our time as well? It could be happen in any time. As a result, the notes are becoming as same as "toilet paper" because the values are not valid.
Some of the country are facing the situation of hyper-inflation. The example of country that suffering are the state of Zimbabwe. Their money becoming less and less value. For instance, RM10 note are equal value to 10 cents. The government of Zimbabwe cannot do anything, the only way they have is to copy out more notes to save the states. But is this the best solution? There is no other way unless the state have their own reservation such as gold, silver, oil etc.
The picture shows a 100 billion dollars note can buy 3 eggs
The Zimbabwe currency value for 1 note of 10 US dollars
You need piles of note if having a dinner or lunch in a restaurant
The Zimbabwe currency value for 1 note of 10 US dollars
You need piles of note if having a dinner or lunch in a restaurant
How are we going to against this hyperinflation? Gold is the only material which are not affected with inflation. The price of gold are still maintain until now. Since the prophet Muhammad (PBUH) time, the price of a goat is 1 dinar. What is Dinar?
Dinar is a standard measure value of unit that used for trading, buying, selling and so forth. 1 Dinar is equal to 4.25 grams of weight and the purity of 916. 1 Dinar can bought a normal size of goat during the time of prophet Muhammad. Until now, 1 Dinar is also a same price of 1 normal goat. The price of 1 dinar according to the price of spot gold now is RM592. The value of gold are still on the same track over centuries. If u keep your note RM600 in a bank, do you think you can still afford to buy a goat for the next 10 years?
Dinar is a standard measure value of unit that used for trading, buying, selling and so forth. 1 Dinar is equal to 4.25 grams of weight and the purity of 916. 1 Dinar can bought a normal size of goat during the time of prophet Muhammad. Until now, 1 Dinar is also a same price of 1 normal goat. The price of 1 dinar according to the price of spot gold now is RM592. The value of gold are still on the same track over centuries. If u keep your note RM600 in a bank, do you think you can still afford to buy a goat for the next 10 years?
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