A Bloomberg article claims that Americans are abandoning the integrity of the dollar in exchange for more speculative assets such as stocks, gold and Bitcoin (BTC).

High savings rate, low yield
Due to the closure of COVID-19, personal savings rates in the U.S. has reached a historical level. But the returns given by financial institutions on savings accounts are close to zero. Meanwhile, assets such as Bitcoin, stocks and gold have gained double-digit gains since March. This makes it an attractive option for investors.

The article mentions a 28-year-old Californian, who told reporters he would transfer $ 15,000 in a high-yield savings account at Ally Bank to Bitcoin. He says he did this because he was expecting a prolonged recession.

July was the worst month in the US dollar for a decade
Reality is worse than Bloomberg articles suggest. It is no secret that the dollar is declining rapidly compared to other major banknotes. In fact, according to the Financial Times, July is the worst month for the dollar in a decade.

With the round of stimulus checks nearby and most countries still affected by the COVID-19 blockade, the problem could only get worse. Americans may have more depreciation in the short term, and may seek to convert their property into assets with higher yields. However, there is no such thing as a free lunch. In the world of investment, high returns come with high risks.

Source: CoinTelegraph

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