Cryptocurrency has become such a part of the global financial discourse that, according to CNBC, the IRS are now actively appealing for crypto declarations. With regulation comes further integration into the economy and the formalization of a financial product with the regular spending and saving of daily life. With that in mind, is it time to look for evidence that cryptocurrency can be part of a viable saving strategy?
The benefits crypto can bring
Cryptocurrency has such a huge x-factor due to the potentially massive return on investment it provides. The Peter Thiel-backed Block.one coin paid out an astonishing 6,567% return on investment to its backers, for instance, and there are several other huge success stories outside of just the Bitcoin story. While these huge returns are often the exception, it remains that the cryptocurrency ecosystem and the excitement around new products has created a situation where many new coins stand to do well. This can figure well in a long-term savings strategy. According to money experts Crediful.com, those with an appetite for risk can often do very well through high-interest savings accounts: the type which yield up to 2.4%. A crypto-focused fund can expect to do this well.
One-off gambles
The highly volatile nature of cryptocurrency also means that huge yields can be gained from minimum risk. For instance, the peak price of Bitcoin hit $20,000 in late-2017. If bought in March 2010, it was worth a third of a cent, meaning a 6,000,000% return on investment. Currencies operating in this manner are less frequent today, but as Peter Thiel has shown, these success stories still occur if marketed properly. Overall, a small gamble on digital currencies with a small amount of savings can be a way to make significant gains without risking the integrity of the savings account and your overall strategy.
A changing economy
The best savings accounts generate their value from wise investments in the shifting economies of the world. Cryptocurrency is starting to make headway in becoming a figure in those economies. According to the Library of Congress, cryptocurrency is seeing use in 130 countries across the world, including major economies in Europe and the USA. With the everyday use cryptocurrency becoming common and widespread, this means there is an added legitimacy for the products and fresh uses for them outside of the theoretical online arena. An impact on real-world economics and the products that people rely on every day will have a huge impact on the success of coins both new and old. With that, savings accounts geared towards the trade and usage of cryptocurrencies will continue to flourish.
The answer, then, is yes – cryptocurrency can be a huge part of your savings strategy. This applies today, as a way to make high-yield gains, or in the future, as a dedicated part of a savings strategy that targets global economic changes. The most important factor for any financially savvy person is to not exclude crypto from their long-term financial goals.
