Diversification Long Before Financial Crisis

0. Quick Tips: Consider More Items and Diversify

  • Do not put most of your money to 3rd parties. This includes banks and government institutions. Trust me, they will hesistate to sacrifice you to save the system.
  • Food, water, shelter, clothing, item, etc: essential for living.
  • Knowledge, experience, strength, ability, networking: basics.
  • Gold and other precious metals: survived for thousands of years.
  • Properties, real estates, and land: well performed assets.
  • Bitcoin and other cryptocurrencies: borderless, decentralized, private, and uncensored currency where you have full power and freedom of your financials.
  • Stocks: like owning pieces of companies, if the companies you own perform well, you will earn more and vice versa.
  • Business and other assets: anything that can generate revenue.
  • Fiat: this is the dollar, pound, euro, yen, yuan, etc where even more people are worried about crisis but still the primary tool to exchange values such as for buying food, drinks, and rent, however never hold 100% into this because many predicts that it will collapse (I hold at maximum 50% including my expenses).
  • Certificate of deposit, bonds, mutual funds, and stakes: for savers (great for other items but becareful if using fiat).

1. Inspiration about money, how to prepare for financial crisis, and why gold is valuable.

A short video by Mike Maloney explaining 140 years timeline of monetary history. What is money? What is currency? He explains very well and easy to understand.

A playlist of Mike Maloney hidden secret of money which is a good material explaining why you should prepare for crisis.

Gold is the safest and most popular because they are very limited and unique where it properties almost cannot be tainted. Only the Lord of The Worlds and Alchemists can disrupt gold. There are other precious metals such silver, platinum, palladium, and bronze but not as popular and trusted as gold.

Summary: educate yourself about financial before it is too late, how many crisis have we faced, and how many countries are currently facing crisis such as Argentina, Venezuela, and Zimbabwe, your country can be next, and never hold 100% fiat and educate yourself into other assets and items such as gold. If you only know how to save currencies such as the Dollar, Euro, Pound, and Yen, you are still not safe. The problem with saving currencies today is that the government can print them as much as they want and it's proven to be losing value for years. I'm from Indonesia and I remembered that during my parent's time, a full meal costs Rp 1000, during my teenager time costs Rp 10000, and now over Rp 20000. For extreme cases take a look at Venezuela and Zimbabwe. A trillion of their local currency can only buy a bread.

2. Taking Advantage of The System and Entrepreneurship

Why do you work for currency if the Central Banks, Federal Reserve, and government are printing faster that you can work for? The riches people in the world like Bill Gates and Steve Jobs are businessmen and investors. It's not wrong to be an employee or be a government servant, but do learn about financials and question the current system. Before that, learn some basics about assets, liabilities, etc with Robert Kiyosaki.

Most developed countries are rushing their interest rate to zero. Japan and Europe now have negative interest. What does that mean? Catastrophe for you oh fiat / bank note savers. Instead of earning money when depositing into the bank, you will lose money. However rejoice! this is also a chance to take advantage of the system. It means they are paying you to borrow money. Go out there and borrow money to buy assets and start your business (disclaimer: plan fully and carefully beforehand or you will likely face bankrupcy). Land and real estates are expensive but well worth it if you do correctly.

Debts / loans should only be used for business or anything else to gain more money and never use them for anything else. Student loan is another thing I hate because you are forced to work and be enslaved after graduating to pay them back, even worse if you failed your study. I did my Bachelor because I can afford, finished my Master's, and currently doing my Doctoral because I got a scholarship with no binding contract. The worst case is using loans to buy liabilities, such as over spending, over shopping, over usage of your credit cards, indulging in pleasures, and other ways of wasting money. Ignore these or you can end up like the video above.

3. Bitcoin and Other Cryptocurrencies

I repeat! Bitcoin and other cryptocurrenciesBorderless, decentralized, private, and uncensored currency where you have full power and freedom of your financials. 

  • You have full control of your account.
  • You can become your own bank.
  • No one can tell you who you can and can't transact with.
  • You can carry it anywhere even across borders.
  • You have the right to be anonymous.
  • Free from any types of controls even from central banks, federal reserves, and central governments. The currency of the people and community.
  • Free from middle party but remain in consensus by the law of mathematics and the network.

Even I admit that the first time I dived into cryptocurrency is because of the chart that showed me that I can be rich quick (if I buy bitcoin few years ago at $100, it is worth $10000 today, I entered at $5000). However, this shiny object blinds people from the true essence of what bitcoin and other cryptocurrencies are which is why entrepreneur such as Robert Kiyosaki are not interested in it. Warren Buffet and Peter Schiff hates it, and the government may never find an agreement because we are in opposition. For cryptocurrency to rise, the tyranny of the central bankers, corporations, and current global financial system have to fall (let's just hope that I'm wrong). Why was bitcoin created? Is one of the most important question. For this Andreas Antonopoulos explains very well.

Cryptocurrency can be dangerous where you have to do your research first but at least their supplies are limited unlike currencies. I'm bullish because I see cryptocurrency as the Internet in the 1990s where they say Internet are for drugs, guns, pornography, terrorist, etc. Today, Internet is one of the most valuable aspect of our lives, and I believe that it will be so for cryptocurrency.

4. Finally, my extra and controversial opinion.

Money is just a tool to communicate values. If you are powerful, do you need money? Therefore, it's the basics that are important which are knowledge, experience, abilities and most importantly power. With abilities, you can hunt for your own necessities. If you are immortal, do you still need food, drinks, and housings? If you are all powerful, doesn't everything bows to your will? https://www.youtube.com/user/PurnamaABC

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