Holding savings in USD vs BTC
There are a few things that separate wealthy people from the poor ones. Not only hard work, determination and a clear vision make the difference, but also a great feel for the risks and opportunities involved in their decision-making plays an important role.
We all know that savings actually tend to depreciate over time unless they are invested, yet sometimes an investor may not have an idea and thus, would need to save in order to avoid jumping into unnecessary risks. However, deciding on the currency of your savings is something that has to be considered when you are into saving up.
Even though United States Dollar is just a national currency of the US and a few other much smaller countries, it is the most popular currency in the whole world. Hence, most of the people tend to turn their savings into USD. Usually this happens due to the fact that other domestic currencies are much more volatile and can easily depreciate. In addition to this, dollar is quite a liquid currency as it can be exchanged without any trouble.
On the other side, we have cryptocurrencies, digital money that got popular only a few years ago. Even though the volatility of bitcoins is much higher when compared to major currencies, bitcoins can also be treated as an interesting options to hold your savings in. There are a few reasons for this. Let’s take a look at the most common ones.
The first that you should understand is that BTC is not really different from any other currency. There are shops that accept BTC, universities that charge their tuition fees denominated in bitcoins and much more services that easily accept BTC as the mean of payment. You can even engage in the bitcoin gambling and start betting your coins on blackjack, roulette or just play poker with your BTC balance. In 2016 playing live casino games with you Bitcoins is quite a possible option as well. In other words, within last few years bitcoins became so popular that you can easily use them to cover nearly any time of the expense, from groceries to big blinds. Also, if you are actually into gambling, bitcoins and other cryptocurrencies can be a viable option for you as such payments involve quite some degree of anonymity and, hence, would not impact your credit rating in the financial institutions. Next to this, you can easily exchange bitcoins back to USD as the market volumes are very high and there is always enough liquidity, especially for the transactions of the moderate size.
Having said this, we can still observe that bitcoins have shown much more ups and downs over the last few years than USD. This tells us that if you are just looking for the security of your funds, dollars still remain a better option. Saving your funds in BTC would rather mean a mixture of saving, gambling and investing.