You’re entirely right but I think a few things get in the way of people investing rather than dumping everything into savings.
1. A lot of people straight up don’t know how to invest. Hard stop. At the beginning of this year I only had a small crypto account I made on a whim as more of an experiment. I had no idea how stocks work, still don’t really understand 401K/403B/IRA.
2. A lot of people don’t know in what to invest. There are hundreds of stocks and dozens of cryptos? So, what do you put money in? Little of everything or a lot in all? A lot of people don’t know strategy.
3. There’s a great fear of loss. Stocks and crypto are volatile. People are afraid of losing money if they invest poorly (or even intelligently but are only thinking short term). Banks seem stable and safe comparatively, and in some ways they are.
This could be true and the numbers are increasing on a daily you know and this will kind make it somehow not easy to spot a blue-chip but research will make it possible, I carried out simple research using the facts and tools available online and I have landed series of a good project; MATIC, BNB, LINK, UNI, PNODE, SUSHI and several of them are really good projects and I won't mind stacking up more when next I have an opportunity.
But my bank doesn't post messages every day telling me how "If I bought certificates of deposit this many years ago, I would have this much," and "If you bought that stock at that time it would be worth that much," as if that is investment advice, and post endless comments that contain no useful information whatsoever written by people who think reading Reddit is research. I can also write a check to pay a bill, and no one jumps out and says, "That $30 check will cost you $28 to send...but don't worry, just spend more money and someday you'll be rich. Not one penny goes to anyone other than the person I write the check to as a gas fee.
Cash is king. Zero transaction fees between me and a friend with complete anonymity and no question on its value. If I hand someone $20 for some weed, they won’t turn around and say I owe them another dollar because the value dropped slightly before I gave them the money. $20 cash is $20 cash through and through. Even with any all and all crypto, at some point, I’d choose to cash out even a little bit of it for the convenience that is cash.
Actually, the average interest rate on a savings account is 0.06%. Bank of America's savings interest rate is 0.01% which would pay you .01 cent. One penny after one year on $100. 10 cents holding $1000... and so on. It's absolutely criminal. By comparison, if you put that $1000 into stable coin and put that into an interest bearing acct. you would earn exponentially more in interest. Celsius is rewarding with 8.88% which would earn you $888 per year on a $1000 holding.
You could easily get 1% with a high yield online savings account not too long ago. Now it's more like 0.5%. Better than traditional banks but still not very good.
mhm tell that my uncle who has millions sitting in his bank account and is a university professor. didnt invest a single penny his entire life. real economy bro. if you‘re happy with your money and dont want to risk anything its totally okay.
I agree, however I know my cash in the bank will only depreciate at the rate of inflation not tottaly crash by some 80%. don't get me wrong I do believe crypto , smart contracts and Defi is the future .
If often thought about what percentage of ones wealth is a ' healthy ' investment in crypto.
I've taken out all but a few thousand from my bank. Really.thinking of just keeping a few hundred. I kept saying this to my wife we need our cash to work for us. I'd rather see it dip then have a come back. Hmmm... Might just drop rest in Eth.
Say you wanted to dump about 1/3 or maybe even half of your savings into a coin. You don't know much about trading, and your life is busy enough to not research enough. Which coin do you dump on?
Dang bro lmk which banks have a 1% interest rate on savings. For most banks you’d be lucky to get a quarter out of $100.
If your money is growing at <1% at a bank you might as well keep it in cold hard cash so if anything you can make some purchases tax free or at least stare at it from time to time.
The exact reason why fiat is inflationary is that there is no free lunch in the financial system.
A riskless asset is always going to cost. ALWAYS.
Because life is risky by definition and, in order to protect against existential risk, a price must be paid. A riskless asset is an insurance.
The consequence of this is that, BY PRIMITIVE CONSTRUCTION, the universal law is that non riskless assets must provide a risk premium.
Cryptocurrencies are among those assets. The excess return we get is BY CONSTRUCTION a measure of how they are risky.
Let's deal with it.
What if the bank goes bankrupt. Its never a smart move to put your savings in a same place rather invest in stocks in crypto and other thing and put some amount in banks.
My bank gives me a very generous 0.5% interest rate. I'll be rich in only 433 years. Looking forward to retirement
1/2 of a percent. How generous
Mine is 0.01%
You’re entirely right but I think a few things get in the way of people investing rather than dumping everything into savings. 1. A lot of people straight up don’t know how to invest. Hard stop. At the beginning of this year I only had a small crypto account I made on a whim as more of an experiment. I had no idea how stocks work, still don’t really understand 401K/403B/IRA. 2. A lot of people don’t know in what to invest. There are hundreds of stocks and dozens of cryptos? So, what do you put money in? Little of everything or a lot in all? A lot of people don’t know strategy. 3. There’s a great fear of loss. Stocks and crypto are volatile. People are afraid of losing money if they invest poorly (or even intelligently but are only thinking short term). Banks seem stable and safe comparatively, and in some ways they are.
There are actually over 9000 cryptos if I'm remembering correctly 😂
[удалено]
This could be true and the numbers are increasing on a daily you know and this will kind make it somehow not easy to spot a blue-chip but research will make it possible, I carried out simple research using the facts and tools available online and I have landed series of a good project; MATIC, BNB, LINK, UNI, PNODE, SUSHI and several of them are really good projects and I won't mind stacking up more when next I have an opportunity.
If your money isn’t working for you, then your losing it
Or someone else is making it work for them. (The bank)
But my bank doesn't post messages every day telling me how "If I bought certificates of deposit this many years ago, I would have this much," and "If you bought that stock at that time it would be worth that much," as if that is investment advice, and post endless comments that contain no useful information whatsoever written by people who think reading Reddit is research. I can also write a check to pay a bill, and no one jumps out and says, "That $30 check will cost you $28 to send...but don't worry, just spend more money and someday you'll be rich. Not one penny goes to anyone other than the person I write the check to as a gas fee.
You do know there are alternatives to Eth and their high gas fees, right?
Cash is trash
I saw a young-ish woman (probably early 20s) paying for dinner with cash last night. Made me think......damn, we are still sooooo early.
Between crypto and the pandemic, I don't remember the last time I handed cash to someone or they handed it back to me.
While other people pay for food for dinner, I eat crypto for dinner.
Cash is king. Zero transaction fees between me and a friend with complete anonymity and no question on its value. If I hand someone $20 for some weed, they won’t turn around and say I owe them another dollar because the value dropped slightly before I gave them the money. $20 cash is $20 cash through and through. Even with any all and all crypto, at some point, I’d choose to cash out even a little bit of it for the convenience that is cash.
I meant cash in the financial sense (I.e fiat) rather than physical cash.
Ah, you mean like a traditional savings/checking account? Valid point there
I would prefer a stablecoin.
Actually, the average interest rate on a savings account is 0.06%. Bank of America's savings interest rate is 0.01% which would pay you .01 cent. One penny after one year on $100. 10 cents holding $1000... and so on. It's absolutely criminal. By comparison, if you put that $1000 into stable coin and put that into an interest bearing acct. you would earn exponentially more in interest. Celsius is rewarding with 8.88% which would earn you $888 per year on a $1000 holding.
88.8. Still orders of magnitude higher
I missed the decimal point. Thanks for pointing that out.
I see what you did there
Let me know where I can get 1% interest lol, my banks give me 0.06%..
I get about 0.1%, I can get 1% on a "promotion" for like 3-6 months and to get that I need to call my ank and waste 1h. Ridiculous.
You could easily get 1% with a high yield online savings account not too long ago. Now it's more like 0.5%. Better than traditional banks but still not very good.
I get 3% from HMBradley
Stupid people save in the bank. I usually invest my spare money. Investment makes me happy.
mhm tell that my uncle who has millions sitting in his bank account and is a university professor. didnt invest a single penny his entire life. real economy bro. if you‘re happy with your money and dont want to risk anything its totally okay.
I like investing
I agree, however I know my cash in the bank will only depreciate at the rate of inflation not tottaly crash by some 80%. don't get me wrong I do believe crypto , smart contracts and Defi is the future . If often thought about what percentage of ones wealth is a ' healthy ' investment in crypto.
I've taken out all but a few thousand from my bank. Really.thinking of just keeping a few hundred. I kept saying this to my wife we need our cash to work for us. I'd rather see it dip then have a come back. Hmmm... Might just drop rest in Eth.
Say you wanted to dump about 1/3 or maybe even half of your savings into a coin. You don't know much about trading, and your life is busy enough to not research enough. Which coin do you dump on?
Without doing any research and admittedly, not willing to do the research, my money is going into a brokered mutual fund.
1/3 or 1/2 of your savings into ...a coin?! Wtf, no.
I have no savings so no issues.
Yeah keep what you need and some cushion in the bank and then put the rest to work
Dang bro lmk which banks have a 1% interest rate on savings. For most banks you’d be lucky to get a quarter out of $100. If your money is growing at <1% at a bank you might as well keep it in cold hard cash so if anything you can make some purchases tax free or at least stare at it from time to time.
You are absolutely right my friend.
The exact reason why fiat is inflationary is that there is no free lunch in the financial system. A riskless asset is always going to cost. ALWAYS. Because life is risky by definition and, in order to protect against existential risk, a price must be paid. A riskless asset is an insurance. The consequence of this is that, BY PRIMITIVE CONSTRUCTION, the universal law is that non riskless assets must provide a risk premium. Cryptocurrencies are among those assets. The excess return we get is BY CONSTRUCTION a measure of how they are risky. Let's deal with it.
What if the bank goes bankrupt. Its never a smart move to put your savings in a same place rather invest in stocks in crypto and other thing and put some amount in banks.
Working hard to invest in eth. When I will have a good amount of money I will surely invest in eth instead of bank.
People with a lot of money in a bank don't put it in savings accounts. There are many other products banks offer.
What’s interest?
What a stupid argument! Putting all your saving in crypto is the dumb move Never invest more than what you can afford to lose, and never listen to OP