Two weeks ago, I wrote about how money mistakes are temporary. My main argument was that unlike other kinds of mistakes, money mistakes rarely have permanent consequences.
I'll return to that in this post, but first let's consider a few things that have happened this month:
- We've all been hearing about NFTs, also known as "non-fungible tokens," also known as digital art that can be reproduced over and over but sells for a ton of money. The NBA has sold $230 million on these intangible "items." An artist sold one for $69 million the other day, and I'm sure that record will be broken soon.
- The price of a single Bitcoin, another modern invention, has risen to more than $60,000. Like NFTs, Bitcoin is also completely digital. There is no such thing as "a Bitcoin" you can carry in your pocket or store in your safe deposit box at the bank. Everyone who trades Bitcoin or other digital currencies simply accepts that it exists.
- The U.S. government has passed a law enacting a $1.9 trillion stimulus package. Put another way, the U.S. government has printed $1.9 trillion more dollars. This was on top of another $2 trillion they printed last March. And presumably there's more where that came from!