Bloomberg: Americans Trade Depreciating Dollars For Bitcoin

[Goodcat49]

Low-yielding dollar savings accounts aren’t cutting it for Americans anymore.

A Bloomberg article claims that Americans are foregoing the safety of the dollar for more speculative assets like stocks, gold, and Bitcoin (BTC).

High saving rates, low yields

Because of the COVID-19 lockdown, the personal savings rate in the U.S. is at a historic high. The yield offered by the financial institutions on savings accounts, however, is close to zero. At the same time, assets as Bitcoin, equities, and gold, all have made double-digit gains since March. This is making them an attractive option for investors.

The article mentions a 28 year-old Californian, who told the reporter that he is going to convert his $15,000 savings held in a high-yield savings account at Ally Bank into Bitcoin. He says that he is doing so because he expects long-term economic stagnation.

July was USD’s worst month in a decade

The reality is even worse than what the Bloomberg article posits. It is no secret that the dollar is rapidly depreciating against other leading fiat currencies. In fact, according to the Financial Times, July is the dollar’s worst month in a decade.

https://cointelegraph.com/news/bloomberg-americans-trade-depreciating-dollars-for-bitcoin

[TomPluz]

People will naturally look for something that can be giving them a better return though we view can also be riskier. Many are already familiar with the growth of Bitcoin and even other digital assets and many can be tempted to jump ship. This can be bad news for the dollar in the long run though, but we could not blame anyone for doing so.