Real interest rates are beyond negative, crypto currency is ready to soar!

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USD and EUR losing value more than ever

As I work in finance as a broker, I get updates by fund providers daily. Most of the time those reports are just a recap of all we already know and an infomercial for the funds they are providing. But this week one “house” did something that stood out. They didn’t mention their own funds one time, they decided to put the focus on the real interest rate all over the world. So, what is the real interest rate? It is the current interest rate on savings accounts minus the inflation. And the news is baffling, in the US it is below minus 4.5% and in Europe it is nearing minus 4 %. In modern times this is completely unseen and the policies of the central banks are not providing any change in the near future.

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Crypto as an alternative

But what does this mean for John Doe and his wife? It’s quite straightforward, they lose 4.5 % in the US and 3 % and more in Europe of value on their money every year when they leave their money in their accounts. After three years people lose over 15 % of value on their buying power.
So what are people left to do? There are two real options, invest in the stock market or move into crypto. And that last option is getting more and more traction. Especially with stable coins, like HBD offering staking rewards of 10 % and more.

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This evolution is only going to get more and more traction and more and more people are going to use crypto as a haven for true return on their hard earned cash!

Sincerely,

Pele23



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6 comments
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I'm not sure I understood everything you wrote here, but I really appreciate the post. Your basic argument that the buying power of developed world fiat is eroding is certainly one I hear about a lot, so it's interesting to see this data on it.

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It’s all about purchasing value, fact is the Western economies have an interest rate policy that makes people lose between 3 and 5 % purchasing value per year… which is unseen in modern times

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My local currency has lost %60 value just in December. We also have negative reel interest rate. This means the inflation will go on to rise.

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