There are exactly 1,000 $100 bills in a bundle. According to Federal Reserve Bank Services, a bundle is comprised of 10 currency straps of 100 bills each for all bills greater than $1. A currency strap of $100 bills is worth $10,000 and a 10-strap bundle totals $100,000. 100 notes is the worldwide standard count for one strap – regardless of denomination. 10 straps always = one bundle. A “bundle” of strapped cash a/k/a a “brick” contains 1,000 bills.
Current US bills weigh exactly one gram per bill. There are four hundred fifty-four grams in one pound. Therefore, 1 pound of $100 bills = $45,400. A brick of $100 bills weighs 2.2 pounds, and has a value of $100,000. Remember a brick, or bundle, has 10 currency straps of 100 bills each which is a total of 1,000 bills.
If you put ten pounds of $100 bills into a brief case, that would be $454,545. How foolish would that be to carry a brief case full of $100 bills? On the other hand, if someone stole your brief case full of cash, at least you would know it and could conceivably recover it. Electronic currency has no weight or physical size but that does not mean it is safe.
Virtual reality is smoke and mirrors. Confidence men and computers would control our economy. Society would be turning over the reins of their finances to Big Brother. Your money should be like your other possessions, if someone wants to take it, at least, make them have to take physical control of the property.
In our modern times, the value of intangible assets is significant on our balance sheets. I value my intangible assets. I get that not all property has physical size and weight.
Would you rather have a brief case full of $100 bills or a broker statement that indicates your portfolio is worth $454,545? Granted, the briefcase is not earning interest or increasing in value. Ten years down the road, your brief case of cash would not have the same purchasing power, it would be less. Ten years down the road, your portfolio should have, at least, the same purchasing power.
If mankind did not have greed within, the paper investments might work. The best crooks are the ones least expected to steal. How can you trust your broker? How can you trust a statement declaring your worth? How can you trust mass market panic won’t happen?
I remember once attempting to borrow against bonds. My conservative banker was very skeptical. Just because bonds have a face value does not mean that those same bonds carry any guarantee of that face value.
Paper currency may not have any real value but I prefer paper currency over electronic currency. As long as the country’s government is strong, their paper currency should be strong. Of course, that 10 pound brief case full of gold would have a value of approximately $200,000 and that value would stay current year after year. Paper currency most certainly depends on a strong country. At least paper, like gold, is tangible.
Brett Bickham, Rule Accounting
Clifton, TX