Americans to look at Bitcoin amidst the Great Lockdown
A recent article by Bloomberg claims that Americans are looking at trading their dollars for high yielding stocks, gold, Bitcoin, and cryptocurrencies.
Money out of thin air
The central banks are creating money out of the thin air to inject more cash into the economy by buying off debts. The Federal Reserve published a $ 700 billion quantitative easing program last March to combat against COVID-19 outbreak.
The dollar depreciation fears many Americans to rethink the way they manage their funds in the economic system. Especially falling interest rates lead them to invest their funds into assets like stocks, gold, and Bitcoin (BTC). A recent article published by Bloomberg shows that individuals choose Bitcoin or other cryptocurrencies investment over a risk-free 2% interest from a high-yield bank savings account.
Bitcoin and Cryptocurrencies
The savings rate in the U.S reached a new high due to the novel Corona Virus outbreak and lockdowns. Furthermore, the yield received from savings is near to zero. However, assets like cryptocurrencies, gold, or stocks gained phenomenally compared to traditional investments, hence making them more attractive options to investors.
Worst month in a decade for United States Dollar
Data shows even worse than what Bloomberg states. It is no mystery that the dollar is rapidly losing its status as the world’s most powerful currency. A recent article published by Financial Times states that July is the dollar’s worst month in a decade. At the press time, Bitcoin reached $ 11,573 mark making dollar even further depreciate against Bitcoin.
The country is under much stress with COVID-19 outbreak and another round of stimulus checks around it predicts the issue to get even worse in the coming days. More and more Americans will look for alternatives to safeguard their cash in hand. The sudden pump in the cryptocurrencies also shows that the interest in internet gold is rising day by day. However, in the world of investment, there are no risk-free investment methods. Everything comes with high risk and investors must assess the risks before firing all cylinders.
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