Bitcoin and other means of accumulation
In the face of growing uncertainty in the market, investors and individuals are looking for ways to save savings and protect them from inflation and losses, Beincrypto writes.
When fear grows in the market, the possibilities for protecting savings are rather limited.
One of the possible options for accumulating funds is to store cash in a bank account or in a mattress. Paper currency is distinguished by the ability to quickly access it, its wide distribution.
But now paper currencies have come in hard times — risks with central banks, growing government debt around the world, and inflation make keeping money ineffective.
Suffice it to recall the crisis of 2008–2009, when the financial stability of the world depended on saving the Greek economy. Understanding this, we see that we are in a dangerous positi
According to some, the best way to preserve capital is through stocks or bonds. These tools tie money to the success or failure of a company.
In fairness, we note that they have been a means of protecting savings for the last three generations. As business grows and develops, value can be not only preserved, but also increased.
However, due to the constantly changing landscape of the stock market, a significant number of investors leave this space in search of other options.
The next possible option to keep savings against the backdrop of market chaos is gold or precious metals. They retain value due to their scarcity and industrial use and are usually less subject to fluctuations in the business world.
However, the main claim to gold is a lack of liquidity. Go to the local gold bullion shop and try to buy Perrier. You will not only confuse the seller, but also face a serious risk of robbery. Gold coins produced by government mints can mitigate liquidity problems in the event of a global collapse of fiat currency.
The fourth option means the accumulation of real estate.
During the 2008 housing crisis, most homeowners lost a significant amount of capital, showing that property values could fall significantly, along with other assets.
In addition, there is a barrier to entry into this market, which involves constant and stable financing, or debt relief.
The main solution was proposed over the past decade: by creating Bitcoins, Satoshi Nakamoto gave the world the opportunity to maintain a genuine deficit, combined with liquidity.
Bitcoin provides users with protection and constant unhindered access to their assets, while at the same time eliminating the need for third-party trust systems, this is a liquid and safe repository of values.
The era of the Internet is booming, and technological solutions are becoming more and more common. Fifteen years ago, most consumers would be concerned about buying something online. Now Amazon has made Jeff Bezos the richest man on earth.
Bitcoin is just a new innovative solution for saving savings in the digital age. Consensus-based and inflation-protected, like gold, easily transferred, it is the best solution for the financial needs of this generation.