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What are the disadvantages of cash?

Updated: 4/28/2022
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11y ago

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You can easily run out of it !
1.) It loses it's value due to inflation. (Correction - Cash only loses it's value on the open international market however it can gain, this entirely depends on fluctuation of the market and this only represents the value of your currency compared to others. Within the area you live EG Australia, the cash value of $1 remains the same no matter what.)

2.) You don't get any more money from it, if you invested it you could get a profit from it (Cost of opportunity). (Correction - If you choose to invest, even in depositing it into a savings account (bank), you run the risk of no return (Profit) or a possible loss should the bank fold and with just the same risk when investing in anything else.)

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Q: What are the disadvantages of cash?
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