Negative interests are crushing rewards of investment.
All countries whose interest rates are set by ECB, Switzerland, Denmark, Sweden, Japan now carry negative interests. This is a huge distortion brought about by central planners with the aim to force people to spend money and thus raise inflation. This is a big damage for savers and investors looking for a healthy return on their money. They now find themselves between a rock and a hard place. Leave the money idle on their bank account, being eaten away by inflation, management fees and negative rates, or invest it in risky assets into an already overbought market.
Enter cryptocurrency. The easy way out from market manipulation by central planners.
One of our recent posts unexpectedly gained a big audience in Scandinavia. It was about the shadowy Onecoin operation. Onecoin is presented to potential investors as a real cryptocurrency but, in fact, it is not. A quick survey revealed why such coin gained such traction in Scandinavia. Since there investors are being eaten up alive by negative rates, impending ban of cash, it is simply natural for them to seek for an alternative investment. It only seems they’ve been deceived.
But, unlike Onecoin, real cryptocurrency such as Bitcoin can actually solve the retail investor dilemma.
There is a huge difference between Bitcoin and fiat money: Bitcoin supply is fixed at 21 millions coins (with currently about 15,5 millions coins in circulation). On the other hand, fiat currency supply is set by central banks, who have the power to print as many of it as they see fit, following their economic and political purposes.
Another big difference between Bitcoin and fiat currency is that while Bitcoin price movement is set entirely by market forces (supply/demand) the fiat money exchange rate and total supply are centrally managed.
This bring us to the core of this post. While you can’t even squeeze a single cent from your savings in fiat currency in Europe, Scandinavia and Japan, from the same amount of money -once converted into Bitcoins- you can gain healthy returns.
How is it possible?
Because Bitcoin, as a cryptographic form of sound money, is actually scarce and people are willing to pay a good interest to borrow it. And believe it or not, there are a lot of people out there willing to borrow bitcoins and pay interests on the loan.
A lot of trusted and secure services emerged lately, that allow you to lend your bitcoins in a safe environment. So, if your money is squeezed by bank negative interest rates, considering converting a fraction of it into Bitcoin and letting your crypo-asset work for you could be worth a try.
Join us to learn more about earning interests on Bitcoin.