What if you could fulfill your transaction benefits (considerations) in various ways, including fiat money? Have you ever wondered what the consequences for your business would be if you could fulfill your benefits in ways other than cash? For instance, let’s say you are a shoe manufacturer. To make shoes, you must purchase raw materials like leather and process them into finished products known as shoes. At this time, if you can pay for raw materials with the finished shoes you made instead of fiat currency, you wouldn’t need to take out a loan with interest from the bank. However, the world’s economic system has limited the standard of value exchange to ‘cash,’ commonly referred to as fiat money. We need to understand precisely why banking is so important to entrepreneurs. This is one of the reasons the industry does not surpass finance. After all, money is among the goods whose value is determined by supply and demand. - Joseph’s “just my thoughts”
Debt is not inherently bad; it belongs to someone else. The goodness or badness of debt depends on the circumstances, terms, and conditions of borrowing, and it is not necessarily negative. Debt should be acquired when I have a stable income or additional profits to invest, rather than for consumption . However, you should avoid using it for highly volatile investments, such as cryptocurrencies or stocks . You need to control the debt; it is considered good when you can manage it under conditions that allow you to repay both the principal and interest . The advantage of debt is that it provides the opportunity to grow faster than others in a competitive environment. Debt belongs to someone else. This is the key. - Joseph’s “just my thoughts”