With the world on the verge of a recession – so say the economists – negative interest will become reality for ordinary people in various countries. But what does negative interest have to do with the bitcoin?
The columnist from Bloomberg, Mike Gilbert, revealed in his column that Americans are more than ever saving money under the mattress to protect themselves from this scenario.
As he was commenting on the risks that this strategy represents, he stated that the bitcoin is a cheaper alternative than gold to make such store of value and get prepared for negative rates. See the post on Instagram:
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💸Negative interest rates are coming for us all. How can we defend ourselves? Mark Gilbert says there’s one way: “Switching to cold, hard cash, tucked under the mattress or buried in the garden.” In fact, that’s already been happening: In the past couple of years, the number of $100 bills in circulation has exceeded $1 bills, 80% of of which are held outside of the U.S. It’s not a strategy without risk though, Gilbert notes: “You could get burgled. Your house could burn down. You could forget where you stashed your cash. The 25% rise in the price of gold in the past year is probably at least partly driven by concern about negative interest rates. But if you can’t afford the physical storage costs of precious metals and you’re feeling particularly brave, there will always be Bitcoin.” #savings #personalfinance #money #moneyadvice #gold #bitcoin #interestrates #negativerates #pension #401k
Therefore, negative interest rates can act more as an adoption trigger of the bitcoin by increasing numbers of people.