Our generation is going through an unprecedented moment with regard to the economy. With the advent of bitcoin we had a revolution, because with a decentralized currency it is possible to make instant transactions all over the world without having to go through exchange offices, central banks or paying taxes.
In addition, we have negative interest rates, an unprecedented and absurd situation, which has led banks in large countries to refuse money from customers.
We have government bonds that have an income lower than the inflation rate leaving money there we would actually be losing money.
On the other hand, we have the growth of the cryptocurrency market in which we have “investments” equivalent to savings or direct treasury. We have, for example, Block-fi, Ledn, Binance itself, Nexo and many other options that bring 6% annual yield in bitcoin and even higher values in other cryptocurrencies.
If we take the example of the stablecoin USDC, which is paired in dollars, it is possible to find investments with a yield of up to 12.5% per year in one of these institutions. Yields are much higher than what the currencies of countries can provide, without counting the stock market, of course.
We must be careful, of course, as it is a new market and does not yet have a Credit Guarantee Fund, despite having institutions specialized in storing cryptocurrencies, such as Genesis. It is certain that this type of service tends to grow and improve in terms of security and perhaps greater returns.
The last excuse we had for not using cryptocurrencies was use, that is, the day-to-day trade uses state currencies. But there are already institutions that issue credit cards and maintain their bitcoin reserves. This type of market attitude has been growing with Mastercard and Visa defending bitcoin, in addition to Paypal already accepting bitcoin.
We can now close our bank accounts and live off cryptocurrencies, protected from inflation and with annual income. Our generation is going through an unprecedented moment with regard to the economy.
The US is releasing digital dollar sometime this year, let's keep an eye on it.