If you bury $100 in cash and wait 10 years, you will have a lot less purchasing power than you did 10 years ago. Because of inflation, it’s not much better to keep it in a bank account than to hold it in your hands, because interest rates are extremely low.
Although cryptocurrencies are more volatile than most currencies because it is a product of new technology, as it was in early 2018 when the price of Bitcoin plummeted. But it has recovered quite a bit, and its upward trend is likely to continue. That’s one of the great options that make it long-term savings.
The problem with traditional currency is that it always loses value. This is no accident. The government did this on purpose. Especially in times of financial crisis. For example, 22% of all dollars in existence today were created in 2020, when the Federal Reserve pumped $2 trillion into the economy.
This is why smart people believe in gold more than money. Bitcoin and other cryptocurrencies, like gold, were not born as short-term solutions to financial problems. That means its cryptocurrency also has its value, and it’s inflation-proof.
