Let’s face it: everyone is thinking about money these days. Whether or not you invest in digital assets, there are many things to consider. Crypto critics predicting a “crypto winter” are faced with the harsh truth that financial markets are not in ideal shape for “fans” of fiat currencies. Inflation is plaguing the currencies of the world’s biggest powers, including the dollar, the pound, and even the euro (which fell to parity with the dollar last week). The U.S. consumer price index, a measure of the cost of living across a range of consumer goods, rose 9.1% in June from a year earlier, with the U.K. not far behind with price pressure. But that doesn’t tell the whole story, because crude oil and energy prices have risen much faster than inflation: energy costs have risen by more than 40% on average.

The effect of geopolitical turmoil on ordinary people is that the traditional currencies they hold no longer buy as many things as they used to. Food, heating, electricity and other daily expenses have all gone up, and in the vast majority of cases wages haven’t gone up with those costs. Interest rates on savings accounts also don’t provide adequate returns. At the end of the day, fiat currency just goes down and down again… worth less money.

Even gold, a traditional inflation hedge, has lost value since the June CPI announcement. On the other hand, Bitcoin (BTC) rallied past $23,000, leading many other cryptocurrencies to rise. Even though it’s a far cry from last winter’s all-time highs, there’s still reason to believe that cryptocurrencies are a better investment than bank fiat.

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Disadvantages of Banking

Despite the growing popularity of new fintech products, banking institutions are still beholden to slow, outdated brick-and-mortar systems that favor banks over customers. Bank hours can be awkward for office workers, and many banks still require customers to be present in person for large transactions and investments. Additionally, predatory administrative fees and fines overwhelm already vulnerable savers, while high-net-worth individuals receive special allowances and benefits.

Even in today’s society, many families are forced to separate as the younger generation moves around in search of a livable future, and the conditions for international transfers are very harsh, often suffering from unfavorable remittance conditions. The typical banking model is inherently unfair or uninclusive. To be honest, this system is completely unsuitable for the modern connected world.

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Cryptocurrency as an alternative

Volatility in the crypto market is the lifeblood of traders who make money by exchanging assets during periods of wild price volatility. But cryptocurrencies also have many advantages and are great for saving and investing.

In fact, many of the benefits of cryptocurrencies address the pain points of the current banking system. These include:

Decentralization & Automation
Thanks to blockchain technology, cryptocurrencies are completely free from the control of third parties, users use ID numbers instead of actual names and addresses to record transactions, eliminating human error, bias, fraud and interference issues, And banks are causing a lot of trouble because of these problems.
Hedging against inflation.
Sure, the dollar value of cryptocurrencies may change, but the tokens themselves are not subject to inflation as they are not governed by any central bank.
Diversification.
A big key advantage is choice. If you are in the UK, your savings must usually be denominated in British pounds and are subject to Bank of England monetary policy. But in the case of cryptocurrencies, there are many different currencies on the market, each with different properties. If you invest your savings in cryptocurrencies, you can choose which cryptocurrencies to hold, exercise your own trading strategy, and have complete control over you to diversify your assets to protect your investments.
Accessibility.
Cryptocurrency services are fully automated and global, so anyone with an internet-connected device such as a smartphone can access cryptocurrency anytime, anywhere. This is much stronger than the bank’s hard working hours and staff restrictions.
Speed.
Many people know what it’s like to feel anxious about having a financial emergency and worrying about getting money to a friend or family member in time. And precisely because cryptocurrencies are free from the bureaucracy and protocol constraints of banks, their transaction speeds are extremely fast, ensuring that your money gets to where it needs to be in a timely manner.
Earnings.
At present, cryptocurrencies may be in a bear market, but as investment assets, Bitcoin and other cryptocurrencies have actually performed relatively well in terms of historical bear and bull cycles. Every 4 years, the bull market cycle pushes cryptocurrencies to all-time highs, greatly rewarding those investors who persevered during the bear market and waited until they were high before selling. unmatched.
Incentives.
Many crypto platforms and projects want to attract investors in the long term, and therefore offer incentives for their customers to deposit funds. These projects often take the form of smart contracts that ensure extremely high returns for holding cryptocurrencies on the platform for a fixed period of time. This practice, known as “staking,” is one of the best reasons to use cryptocurrencies as a form of savings during a downturn.

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Join BitMEX and start your crypto savings journey

BitMEX, an award-winning one-stop cryptocurrency platform, provides you with everything you need for uptrends and downtrends, thanks to advanced analytical tools and easy-to-use platform features. Buying cryptocurrencies on the BitMEX platform also allows you to enjoy unique features such as: BitMEX Bitcoin cloud mining service, loyalty program rewards, plus access to ready-made investment assets such as crypto indices and tokenized stocks.

Come and learn about the powerful features of BitMEX! Sign up in seconds, open a demo account, and try the power of the platform under real market conditions.

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