I was listening to a podcast by The Modern Investor on his Money Rules – Investing Tips channel. Something he said this morning hit me differently than most other podcasts I’ve heard on this particular subject.

He said:

“The US Dollar, the world reserve currency, lost 99% of its value to Bitcoin in 10 years.”

That’s insane.

The US Dollar has indeed lost 97% of its purchasing power since 1913 when the Federal Reserve was created. But to experience 100 years of lost worth in a tenth of the amount of time to a new form of money should signal that the problem is accelerating.

In other words, the worst thing you could do with your wealth is to hold cash for the long term. It reminds me of the Parable of the Talents in Matthew 25:14-30.

The Parable of the Talents

14 “For it [the kingdom of God] is just like a man about to go on a journey. He called his own servants and entrusted his possessions to them. 15 To one he gave five talents,[a] to another two talents, and to another one talent, depending on each one’s ability. Then he went on a journey. Immediately 16 the man who had received five talents went, put them to work, and earned five more. 17 In the same way the man with two earned two more. 18 But the man who had received one talent went off, dug a hole in the ground, and hid his master’s money.

19 “After a long time the master of those servants came and settled accounts with them. 20 The man who had received five talents approached, presented five more talents, and said, ‘Master, you gave me five talents. See, I’ve earned five more talents.’

21 “His master said to him, ‘Well done, good and faithful servant! You were faithful over a few things; I will put you in charge of many things. Share your master’s joy.’

22 “The man with two talents also approached. He said, ‘Master, you gave me two talents. See, I’ve earned two more talents.’

23 “His master said to him, ‘Well done, good and faithful servant! You were faithful over a few things; I will put you in charge of many things. Share your master’s joy.’

24 “The man who had received one talent also approached and said, ‘Master, I know you. You’re a harsh man, reaping where you haven’t sown and gathering where you haven’t scattered seed. 25 So I was afraid and went off and hid your talent in the ground. See, you have what is yours.’

26 “His master replied to him, ‘You evil, lazy servant! If you knew that I reap where I haven’t sown and gather where I haven’t scattered, 27 then[b] you should have deposited my money with the bankers, and I would have received my money[c] back with interest when I returned.

28 “‘So take the talent from him and give it to the one who has ten talents. 29 For to everyone who has, more will be given, and he will have more than enough. But from the one who does not have, even what he has will be taken away from him. 30 And throw this good-for-nothing servant into the outer darkness, where there will be weeping and gnashing of teeth.’Read full chapter

Footnotes

25:27 Lit received what is mine

25:15 A talent is worth about 6,000 denarii, or twenty years’ wages for a laborer

25:26–27 Or So you knew… scattered? Then (as a question)

Either way, the point is that holding US Dollars (saving) as an investment strategy over the long term is probably not a good idea. I’m not saying that owning cryptocurrency is the solution. But it would be wise of us all to own something of value and to hold onto it. Gold. Stocks. Property. Even non-traditional assets like Pokemon cards. Anything else but dollars.

These things will preserve our wealth over the long term. Let’s not be like the third guy in the parable who just buried his talent (or stuffing it into his mattress). In stead, let’s have something of value to pass down to our kids and grandkids once we’re gone.

God bless!