The tax evasion point about the increased popularity of large-denomination banknotes in an era of declining cash use is an interesting one. Shouldn't crypto be the main beneficiary of the informal (shadow) economy?
I don't know how it is in other countries, but in Germany, it is very difficult to accumulate wealth through running a business. When you make a good profit, taxes rise by a multiple, especially if you are located in an urban area with a high business tax rate (Gewerbesteuer). Hence, many Germans pay tons on silly tax-reducing expenditures such as snazzy company cars, and hence, Germans have less wealth per capita than other Europeans (by some metrics, even less than the Italians, for instance).
From my business-owner acquaintences however, I know that the smarter ones eschew artificial expenses, and instead accumulate as much cash as possible. How to invest it? Aww, there's always a way to serve the king.
Fascinating data on the resilience of large-denomination cash. The “store of value” motive in low/negative rate environments mirrors how businesses sometimes hoard liquidity or delay payments to preserve cash - especially when credit terms tighten. TCLM often explores that operational side, where payment timing and working capital behaviour intersect with monetary conditions. A thoughtful read.
"Reports of my death have been greatly exaggerated." — Cash
I'll see you at the bank machine, Joachim.
Way too risky: https://klementoninvesting.substack.com/p/boost-german-consumption-blow-up
🤣
Touché 😂
The tax evasion point about the increased popularity of large-denomination banknotes in an era of declining cash use is an interesting one. Shouldn't crypto be the main beneficiary of the informal (shadow) economy?
I don't know how it is in other countries, but in Germany, it is very difficult to accumulate wealth through running a business. When you make a good profit, taxes rise by a multiple, especially if you are located in an urban area with a high business tax rate (Gewerbesteuer). Hence, many Germans pay tons on silly tax-reducing expenditures such as snazzy company cars, and hence, Germans have less wealth per capita than other Europeans (by some metrics, even less than the Italians, for instance).
From my business-owner acquaintences however, I know that the smarter ones eschew artificial expenses, and instead accumulate as much cash as possible. How to invest it? Aww, there's always a way to serve the king.
"Large banknotes are a great means to evade taxes"
The ECB no longer issues 500 euro banknotes exactly for this reason.
Fascinating data on the resilience of large-denomination cash. The “store of value” motive in low/negative rate environments mirrors how businesses sometimes hoard liquidity or delay payments to preserve cash - especially when credit terms tighten. TCLM often explores that operational side, where payment timing and working capital behaviour intersect with monetary conditions. A thoughtful read.
(It’s free)- https://tradecredit.substack.com/