I’ve read about these concepts and constantly hear them but I still don’t understand how money/assets fluctuations happen
In: Economics
Say you bought a piece of land. Then you landscaped it and built a house on it. Now you want to sell the land and the house – would you expect to sell it for more than you purchased it initially?
This is basically the concept. Currency, stocks and stuff change over time because stuff happens. Sometimes deliberately, like improving it by building something on it, sometimes accidentally (say you discovered gold on the land). Value can also go down – say a fire burnt down a house and now only the land remains.
Currencies work at the level of countries, stocks work at the level of companies. But the basic idea is the same.
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