Why Bitcoin is the best savings account?
We are witnessing the birth of a powerful contender for long-term wealth preservation, unaffected by centralized banks and free from the corruption and manipulation that plague traditional institutions.
The ultimate savings account for the modern era:
- No talking heads and CEO to fuck things up.
- No corruption, fraud, or manipulation compared to traditional banks.
- Doesn’t rely on central banks for support.
- Open to everyone, everywhere.
- Doesn’t lend out your savings.
- You have complete control over your funds.
- No counterparty risk.
- Predictable monetary policy.
- Trustless system — no need for trust in intermediaries.
- Low fees for transactions.
- Transactions can’t be frozen.
- Enhanced privacy compared to traditional banks.
- Transparent public ledger.
The list could go on forever.
Drawbacks
- The extremely steep learning curve.
- Yes, price volatility can be vicious.
This makes Bitcoin an innovative and empowering option for storing wealth over time, the ultimate savings account.
Currently, my bank offers a 2,2% interest rate if I lock my funds for 12 months.
Using the rule of 72, it would take 32 years to double your money at a 2.2% interest rate (72 ÷ 2.2 ≈ 32.7). However, considering inflation, the purchasing power of your money may decrease at a faster rate.
The central bank’s target inflation is 2%, so I managed to store my purchasing power. The value of money halved in 36 years. (72 ÷ 2 ≈ 36)
Reported inflation is currently in Finland at 8,5% (My personal Inflation is over 20% for food, energy, and housing), but let’s roll with government numbers.
With an 8.5% inflation rate, the value of money would halve in approximately 8.5 years (72 ÷ 8.5 ≈ 8.5), and with a 20% personal inflation rate, it would halve in about 3.8 years (72 ÷ 20 ≈ 3.6).
To retain your purchasing power in the face of inflation, you need an interest rate that matches or exceeds the inflation rate. 2.2% interest rate? Get the fuck out.
In the ever-changing financial landscape, Bitcoin stands as a beacon of financial freedom and innovation, challenging the status quo and empowering individuals to take control of their own financial future.
Good luck picking stocks, bonds, and real estate to retain your purchasing power. Can you beat the inflation %?
Fuck this shit BET BITCOIN!
Join my substack!
Originally published at https://kiiski.substack.com on March 23, 2023.
