BITCOIN’S SUPREMACY OVER FIAT CURRENCY
The US Federal Reserve will reduce the interest rate on savings and this is happening for the first time since the global financial crisis a decade ago.
To cut rates, the Fed will increase the supply of US dollars which may probably lead to a lower value.
Fiat money can be manipulated at will by central banks. Bitcoin cannot. Bitcoin’s total supply is hard-capped and will never increase even though there is speculation that prices are manipulated(not proven)
Bitcoin will get more scarce after the halving in 2020 against a dollar whose supply will be increased.
Saving money in the bank these days means
Low-interest rates which drain savings
Low-interest rates designed to encourage more spending and not necessarily saving.
The best savings accounts in the US only offer ~1.9 percent interest and with the Fed cuts, there is a huge probability that it will be further reduced.
Except you have millions of equivalent fiat currency in a savings account, you can't expect any reasonable return from your savings
BITCOIN IS A TRUE INVESTMENT WHY?
The value of bitcoin depends majorly on demand. Over the long-term, this has played out in a steadily rising return for bitcoin holders.
Bitcoin rewards saving when you buy at the right time, its supply cannot be diluted and no central authority can devalue it.
It can’t be used as a tool for global power games like trade wars.
Bitcoin’s daily supply is programmed and kept in check by an evolving “difficulty” algorithm. The output is predictable and impossible to manipulate.
Though the stock market delivered strong returns over the last decade, many Wall Street analysts do agree that the party is fizzling out and attention is being shifted to other directions.
Investors will start to look elsewhere to put their money. And it’s getting harder to ignore the best performing asset of the decade, bitcoin. In the absence of traditional yields, investors will cautiously start allocating to bitcoin.
BITCOIN'S BETTER ECONOMICS
Today’s rate cut is a good time to think about the broader economics of fiat money. Consider that the world economy big players are continuously printing money to meet up with demand even when it is UNNECESSARY, but does this mean well for the global economy OR THE ECONOMY OF THAT COUNTRY?
For sure releasing these funds into the market temporarily boost stock markets but the average person putting their hard-earned money in a savings account CAN NOT BENEFIT FROM MONEY PUMPED INTO STOCK MARKETS.
Bitcoin daily supply decreases against that of the FIAT CURRENCIES.
Bitcoin is a scarce asset while the dollar’s supply, for example, is abundant and ever-growing and considering the law on Supply and demand . scarcity presumably adds value to the price of a currency than abundance.
Knowing when to buy is the key point here. Bitcoin does not have a fixed price. It is not advisable to jump into trading without any experience.
The internet is a place to gain all the knowledge you need to trade effectively and minimize loss
Though it might be a difficult task to decide when to buy, learning algorithms and investing at the right time would save you many years of hard work with no returns.
BITCOIN IS NOT PERFECT BUT IT IS A SURE ALTERNATIVE