In the next two years, people with a lot of cash may "have trouble sleeping"? Th

2024-06-15

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For any of us ordinary people, it is customary to deposit money in banks and never hold a large amount of cash in our hands. This is not only a form of protection for our own wealth but also a psychological comfort.

However, the situation has undergone tremendous changes, and those holding a large amount of cash this year and next year are likely to have a hard time sleeping. What is the reason behind this? Why does holding a large amount of cash still make one feel so nervous and afraid?

Overall Economic Situation

We all know that since 2020, the pandemic began to erupt, causing great trouble in everyone's life and studies. It not only trapped us at home, unable to go out to work, but also had a significant impact on our economy.

We can investigate from many aspects, especially our real estate industry, which has become one of the hot topics discussed by everyone during the pandemic. Many people thought about buying a few properties during the pandemic when house prices were cheap. However, the overall economic situation is not optimistic but has experienced one setback after another.When the economy is doing very well, holding a large amount of cash in hand is a very good thing. However, during the pandemic and the recovery period after the pandemic, holding a large amount of cash is not a good thing; instead, it becomes a torment.

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Why is it considered a torment? This is because when the economic situation is very good, having a large amount of cash allows us to engage in investments and other activities. But during the pandemic, there are not as many entrepreneurial opportunities or investment fields available.

Under the overall pandemic situation, our country and other nations have adopted different economic policies, which has resulted in a minimal impact on our economy.

Unlike the United States and other Western European countries, their economies have fallen into complete disarray, and the lives of the people have been greatly affected.

However, our country has adopted a very stable economic policy. The national economic departments have reduced many investment opportunities in the market, leading to many people holding a large amount of cash and not knowing how to invest, thus becoming a significant torment.

Some people, facing such a situation, can only honestly deposit their money into the bank and wait for any investment opportunities that may arise.

But some people are not willing to sit idly by; instead, they actively seek various opportunities in the market, trying to make a fortune during the pandemic.However, we all know that one cannot twist a thigh with an arm. No one can resist the economic policies proposed by the state; we can only silently follow and wait for the arrangements made by the country.

Especially this year and next year, although it is said that the pandemic has passed, the impact of the pandemic continues to persist, causing significant disruption to us.

When we walk on the streets, we can see many newly opened shops that close shortly after they start operating, and some shops have already posted transfer notices a long time ago.

Perhaps the restaurants and other industries in the community where we live were very popular before the pandemic, but after the pandemic, we have noticed that there are no customers whenever we visit.

All these signs indicate that the impact of the pandemic is still ongoing and has not yet passed. It is currently affecting and will continue to affect our lives in the future. In this special era, each of us must listen to the country's policies and follow the country's pace closely.

Do not think that the pandemic has already passed, but its impact is still unfolding and continuing. Some of us, even if we hold a large amount of cash, must also keep our eyes open and invest only when we are very confident and there is relevant national support policy, as this is the safest approach.

On the contrary, do not listen to the opinions of friends or others around you. It is safest to keep your money securely in your own pocket.The Phenomenon of Inflation

We often observe that whenever Western countries face an economic crisis, it is invariably accompanied by the phenomenon of inflation; these two phenomena are certainly interconnected. This occurrence is not only very common but also inevitable.

Almost every country in the world, after experiencing inflation, has economic reasons behind it. Particularly after the outbreak of the pandemic in the United States in 2020, the U.S. printed a large amount of currency to alleviate its economic crisis.

The approach they adopted was quite crude, which was to continuously raise interest rates to levy interest on all countries around the world, thereby alleviating their economic crisis and similar phenomena. Consequently, many countries, under the influence of the United States, began to adopt interest rate hike policies similar to those of the U.S.

This led to the U.S. dollar index soaring wildly last year, with the exchange rates of many countries around the world plummeting.

For our country, strict measures were taken in a timely manner to control this unstable phenomenon, but it also had certain impacts on our nation.

It is under the influence of the U.S. monetary policy that commodities in multiple countries around the world have experienced varying degrees of price increases, and our country is no exception. Especially when we go to the supermarket to shop last year and this year, we can always see that the prices of some goods are quite outrageous.This phenomenon of inflation leads to a decrease in the purchasing power of a large number of people, resulting in a significant accumulation of goods.

For us ordinary people, the impact of rising prices on us is very minimal; we can still purchase goods of equal quality. However, for those who hold a large amount of cash, their situation is not as favorable.

The impact of this inflation on them is enormous, causing their cash to be unable to circulate normally and instead, it must remain quietly in their pockets.

If the economic situation improves, they can then allocate their cash in large and reasonable amounts to offset or alleviate the damage caused by inflation.

What's more frightening is that those who currently hold a large amount of cash are unsure of what to do and can only wait for opportunities every day.

The reason for this is technological.

Our lives are getting better and better, largely due to the continuous rise and progress of science and technology, which has improved our living standards and quality of life. At the same time, the continuous innovation of science and technology has also led to a trend of diversification in our lives.

However, for those with a large cash flow, this uncontrollable factor is undoubtedly a torment for them and an obstacle to their cash. For example, the current popularity of the digital economy has led to today's economy being digitalized and virtualized.In the context of this unique era, many individuals, especially the ultra-wealthy, have purchased a significant amount of virtual real estate and intangible material products. Consequently, this has led those with substantial cash holdings to turn their attention to this sector. In order to put their cash to good use, they have initiated a series of activities.

However, to everyone's surprise, the emergence of CHATGDP in 2023 directly led to the bankruptcy of the previous virtual economy. A large number of wealthy individuals who had invested in the metaverse are now shifting their focus to the field of artificial intelligence.

The rapid innovation of this technology has rendered the investments made by many cash-rich individuals meaningless. Not only have they suffered significant financial losses, but they have also wasted their time and energy.

This reflects our current reality, where the pace of development in our era is incredibly fast. It's almost as if there's a new scientific theme every year, making it difficult for many of us to discern where the next big opportunity will be.

Even if this year's trend is artificial intelligence, no one can predict what next year will look like, and no one can grasp what state it will be in. Therefore, this presents an extremely challenging decision for those with substantial cash flows.

It's akin to gambling, with the odds of winning or losing being roughly 50-50. If one wins, they can solve the problem of what to do with their cash on hand. On the contrary, if they lose, their funds will face significant issues.Based on the three factors mentioned above, the most prudent course of action for those of us with a substantial cash flow is to patiently wait and see.

Do not let immediate gains cloud our judgment; whenever anyone tells us which industry is currently the most profitable, we must consider the current situation at hand.

Having a significant amount of cash on hand, for each of us, is about wanting to use our idle money for investment or entrepreneurship, and having this mindset is correct. However, before proceeding, it is essential to prepare by understanding the actual market conditions and making precise choices accordingly.

If you feel truly uneasy, then depositing the money into a bank and earning interest daily is also an excellent option. In the context of today's era, any decision we make requires thoughtful consideration; not all decisions can be made overnight.

In conclusion, in the current economic and temporal backdrop, those with a large cash flow may not be living a carefree life as we might imagine.

We often say that the happiness of the wealthy is beyond our imagination, but in fact, their troubles are also beyond our imagination.Based on this, each of us lives in this special era, and we all have our own views on the current economic situation, as well as our own plans.

However, in general, before we take action, we must consider our actual circumstances and the reality of society.