Simply Bitcoin: Bitcoin Will Decouple and Save Regular People
Investing can be challenging for a variety of reasons. For lower or middle-class consumers, getting started can be a challenge.
It’s ideal to build up some savings before investing. And when those savings are taking a hit due to inflation, it can seem like being stuck on a treadmill. That’s why investors need a place where they can save without having to worry about a declining purchasing power.
Historically, precious metals have fulfilled that purpose. Gold and silver have tended to hold up well against inflation. They have worked well historically as savings.
Today, most wealthy have a number of assets that are designed to rise as the money supply expands and inflation takes off.
For the middle class, that often includes a residence. A home bought with a mortgage that’s paid off over 15 or 30 years tends to be far more valuable decades down the line.
But home prices can be impacted by trends like rising interest rates. With a more challenging environment for buyers, prices are likely to decline.
More recently, some have seen cryptocurrencies as a place to save. In the 13-year history of the space, there have been some excellent returns. But savers need to be wary.
With large-cap cryptos like Bitcoin down 70 percent from last year’s highs, it’s a volatile space. And staking a crypto for dividends has likewise been a challenge with the volatility in the space. Even with those challenges, it may still offer excellent long-term returns.