Yes, you read the title right. The German National TV recently published a video that tells people to invest in crypto and not store cash. The video was hilarious, and you must definitely watch it. It shows a man coming to a place, most probably an office or a bank, wanting to open a Savings account. This is when the official puts a 20 Euro bill through the shredder, saying this is what happens to your money when you put it in a savings account.
Why crypto not cash?
We all know about inflation, and while crypto is volatile and might be risky in some sense, we must understand cash is riskier. Crypto goes up and down in value while cash only goes down consistently year after year from the beginning of time and will till the end. Inflation is at its peak, and this means whatever the price of goods is today, it will be more in the future. Therefore to purchase the same things, you will need to have more money. So, ultimately the value of your money is going down.
While crypto price crashes can be seen on screen, cash eats away your money invisibly. And if you are thinking about putting your money in a savings account, that’s no better. Why? The average inflation rates can be considered anywhere between 5-7% (leaving out COVID), while savings account hardly give 2-3% interest rates and are sometimes even lower.
This means the value of your money is going down, just not that fast. If you want to preserve its value, you must get more returns than inflation eats away. And crypto is a wonderful way to do that. There are less riskier options like FDs and more, but that’s not something I will put my money in.
I don’t want to take risks but want the returns
This is possible, and you won’t just beat inflation but make a lot more. There are platforms that offer more than 10% interest on stablecoin holdings. This means your money is stable, and you will get consistent returns year after year. Do note that I won’t name any platform, and you should do your own research before choosing a platform. Don’t just chase returns; choose an exchange you can trust and will have peace of mind if you put your money on their platform.
What are your thoughts as the German National TV tells people to invest in crypto? And do you agree with them? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.