Cryptocurrency is growing in popularity. Today, more and more people are investing in cryptocurrencies. In this article, we will tell you why crypto interest or saving account is the best option for you.
If you are a traditionalist in terms of saving physical cash, you must know that trends are changing rapidly – and sooner or later, you will be using a digital version of saving account (piggy bank). In fact, it is no surprise to say that you are already using the digital version of money – i.e. through credit cards, Bitcoins, etc.
People are acknowledging the fact that the financial world is getting increasingly digitized. Today, more than 85% of the world’s money purely exists in digital form. So, with that in mind, a transformation in perspective about cryptocurrencies is already in motion.
Saving Money Traditionally
Is it a better option to save money traditionally? Well, let us answer this by giving you an example. Let’s say you are planning to save 200 dollars every month. The simple and easy way to do this is leaving the money in your regular bank account.
On the other hand, you also have the option to deposit this money into a savings account. However, here you need to comprehend that your money will be essentially lent out to other people.
So much so, when you deposit a certain amount of money into a bank, the administration of the bank has an obligation to pay you the amount in the agreed time.
If you have an interest-based on saving account, the bank promises to pay back with interest. It means that the bank has to somehow earn that cash or money. Most banks do this by taking money from you and then give this money in loans to other people at higher rates in order to earn a profit.
Therefore, everyone cannot withdraw their money at once – that way, the bank won’t be able to run its operations because of the lack of money. This is usually known as a “Bank Run” and in general, it does not end well.
In addition, you need to remember that the buying power of your interest-based account is going to get affected by the 1-3% inflation per year. Simply put, $100 today will buy $95 worth of goods one year from now. Every time the Federal Reserve Bank print more and more paper money, the dollar is devalued.
Saving Money Cryptocurrency
Since cryptocurrency has fixed supply of currency or coins (in the case of Bitcoins), it is more likely to hold the value of the currency. So, decentralization through blockchain is one of the most important characteristics of cryptocurrencies including Bitcoin.
What does this mean? Well, it means that there is no central bank or institution that can control the cryptocurrency network.
In fact, cryptocurrency is becoming a trustworthy currency just like any other national currency. The only thing you need is to operate your digital wallet.
Additionally, you can use your own bank or a private wallet. Platforms like Blockfi offer interest-based crypto accounts where you can save your cryptocurrencies.
Likewise, you can store your coins for a longer period of time. The growth of your interest account will occur naturally – as it depends on the supply and demand factor. Furthermore, if you bought a cryptocurrency one year or two years ago, the value of your cryptocurrency would be the same or higher than the traditional banks.
A number of blockchain PR agencies are working to improve the overall operations of the crypto interest accounts where you can save your Bitcoins or any other cryptocurrency and get 5-7 interest on daily, weekly, or monthly basis. Blockfi – in this regard – is one of the best platforms.