My grandmother is an intelligent lady
Indeed she is a lady of this world modern and intelligent she has moulded herself to the changing times. However one thing that irks her no end is the losing value of money.
Just the other day me and my grandmother were having a chat about life in general. As usual the conversation shifted to how things are getting more expensive.
She said that money is losing value like never before money cannot buy things it used to buy.
A $50 in hand cannot buy the same things as it used to a couple of years back. Name it price increase or devaluation of money. Money invaribly around the world is losing its buying power.
She said that what ever money you save for the future would eventually lose value over time.
She had a valid point and to explain it she said that when She and my Grandfather were young they could buy a lot more with their money then it can buy them now.
To illustrate she shared some numbers.
Back in 1971 when she & Granddad were young they had bought some gold at the rate of $40.8 per ounce.
She showed me the price chart of gold too for the year 1971
She then compared the rates with the gold rates of 2021 that is the current year.
In comparison Her $50 could get her an ounce of gold in 1971 however Now in 2021 Her $50 would get her or anyone else much less gold as currently the gold pricing is over $1835 per ounce of Gold.
One casual way of explaining is that Gold has become more expensive another way of looking at it is that our money is losing its buying power.
This is actually quite true and unfair for all of us who work so hard to make a living.
It is disheartening to see the power of our wealth get lowered and eroded.
AMPL comes to the rescue
Doing some research I came across AMPL an ethereum based cryptocurrency with an elastic supply.
The way AMPL behaves that it is designed in such a way thats its supply increases or decreases based on its supply.
To explain it to my grandmother this is the approach that I took.
Suppuse you have a bag full of this new kind of money called AMPL
The interesting part about this money is that suppose you buy certain amount of coins at $1 each.
Now the price goes up So the number of coins in your money wallet would increase.
This made my grandma instantly happy as it meant she would have more number of coins to spend.
Corrosponding though if the price of coins went down then the number of coins in the bags would go down.
At first my grandma did not like this idea one bit however when I told her that this increase and decrease in the number of coins is such that her proportion of the coins would remain the same.
It is like this if she and her twin brother decide to cut only one cake they would get 1/2 cake each.
Now if they ordered a big cake they would get a bigger share however still only one half of the cake.
Corrosponddingly if they ordered a small cake they would still get one halp each.
This seemed to satisfy a bit as no one wants to give a bigger share of the birthday cake.
The same analogy works with AMPL coins as well
Suppose there were 10000 AMPL coins in total (Though there are a lot more however I am taking this for easy explanation)
You hold 1000 coins so you have 1000/10000= 1/10th of all the coins
So if the number of coins went up or down your proportion of coins would remain the same.
When the number of coins goes up you are inclined to spend more and when the number of coins goes down you are inclined to save up
Both actions trigger a rebalancing which happens once everyday.
This explanation satisfied my Grandma and she is taking my help to setup her wallet and I would be helping her get her first crypto AMPL
Do share this experience with your grandma too and try holding some AMPL it is an experience worth having and surely there is an opportunity to HODL trade and profit from AMPL if you begin to undertand the patern of rebalancing.
I leave that for another discussion and post.
