We have been through some rough years since COVID-19, and there have been many ups and downs. One of the consequences of those years has been heavy inflation, causing prices to rise. At the same time, we have seen the interest provided by banks increase. I still remember having a negative interest rate on a Euro account, but that has changed, and it has been moving between 2% and 4% in the recent year. Why is that? Prices have gone up, and so has the interest rate to fight inflation.
I am not going to discuss the logic behind this, but what I'd rather share some thoughts about is how to save money. Why? If you own $100 and place it in the bank and get a 3% interest, that is nice. But, is your money going to be worth more when you withdraw it in 2 years and you get $107 or something like that? Most likely, you would be able to buy more for that money today than you will in two years, even though you own more money in two years. That is the problem with inflation. It isn't really worth storing your money in a bank, because they decline in value.
How to save money then? I don't have a superb answer, but I do believe Bitcoin is the opposite of the FIAT currencies. Instead of inflation, fewer and fewer Bitcoins are produced. As a result, it moves in the opposite direction, and it cannot be printed by anyone whenever they feel like (like a Federal Bank).
In other words, I do believe Bitcoin is one of the best ways to invest your savings. Of course, it shouldn't be your only solution and place for savings, but adding a certain percentage in Bitcoin is a way to hedge your investments for the future.
I will write more thoughts on the topic tomorrow.