Why you should hold Crypto Currencies like Bitcoin, Tatcoin over Fiat Currencies

By Lucky Nwanekwu and Segun Adams 

The world is currently on the verge of a severe economic crunch that could rival the Great Depression of the 1930s, according to some experts. The Coronavirus (COVID-19) is roiling markets, but leading economies think they can spend their way out of the coming downturn – the cost? The value of traditional currency. 

Just early this week, the US Federal Reserve said it would unleash unlimited Quantitative Easing (Push unlimited amount of money into the economy through asset purchase), the US lawmakers are debating the country’s biggest-ever stimulus package of $2trillion which would put around $1,200 in the hands of consumers. 

The US is not alone. From rate cuts to monetary and fiscal boosts, countries around the world are trying to boost liquidity and demand in their economies. All these money will chase limited goods in the economy since businesses have shut down, and the effect would be a surge in price. 

 

Coming home, in response to pressures on foreign reserve the Central Bank of Nigeria (CBN) “devalued” the naira pegging official rate at N360/$ from N307/$ while it quoted the rate for foreign bonds and stocks investors at N380/$.

Automatically, Nigerians lost over 10% of their wealth in dollar terms and facing domestic inflation levels of 12.2%, the real worth of the naira is fell. 

 

What a weaker naira means is that your fiat money would lose purchasing power over time and what it could afford last year might not fetch you that much this year.

The 17% devaluation notwithstanding, analysts believe the naira is still too strong and should be quoted at around N401/$.

What’s worse is that Nigeria with a high preference for foreign goods (both consumers and producers rely on abroad for a lot of products), imported inflation could be a concern,

ARE SAVERS LOSERS?

Today, your money might not fetch you much interest rate if you put it in the bank. With just 0.2% a year, if you put N10,000 today in the bank, in a year you won’t make up to N10,100. And at 12.2% inflation, your money is down by N1,200. 

Savers are getting wiped out today and you won’t make much if your money is just sitting dormant without putting it to work. This, therefore, means that investors should look for certain vehicles that can increase their spare money is invested in. 

 Interest rates are at its lowest today and if you really want to hedge your money or really make more money, then you need to do your research and invest in better products than just saving your money in the bank. 

BITCOIN AND TATCOIN AS A RELATIONAL HEDGE 

According to coin desk, Cryptocurrency has many value propositions, including censorship resistance, seizure resistance, and global coordination without middlemen.

Until recently, one value proposition seemed largely hypothetical – depreciation resistance (that is, a store of value immune to inflationary money printing at the whim of central bankers or politicians). 

 Seehttps://businessday.ng/exclusives/article/inflation-rises-by-12-2-in-february-highest-in-22-months/

While bitcoin fans have long noted how fiat is devalued over time, bitcoin often appeared like a solution in search of a problem in this regard. Over the last decade , bitcoin has grown by over 9,000,000%. It has proved itself as both a store of value and a means to generate wealth over a period of time.

The Founder of Binance tweeted about the humongous rise of the digital asset over time. CZ also suggested his followers try and imagine how high the BTC price may soar if or when a new financial crisis breaks out and stocks plummet. CZ is not making any specific predictions, though.

You missed Bitcoin, BNB, then Don’t miss Tatcoin

The biggest returns on investment in the past decade was not real estate, any technology stocks, not gold but Bitcoin. But if you missed bitcoin investment when it was just one dollar, then something big is coming – it is Tatcoin. With just a few months to end its pre-sale, you wouldn’t want to miss investing in an asset that holds a lot of opportunities for people especially around this part of the world. This utility token is focused on simplifying payment processes for goods and services and would be available to every user on the ABiT network. This means that using Tatcoin on the ABiT platform would include discounted rates on every product and service. 

Services such as real estate, payments, shopping, and entertainment would be easy to purchase with the Tatcoin.

“At ABiTnetwork, we are always looking for smart solutions to prevailing issues in the economy,” says Gaius Chibueze, CEO ABiTnetwork. See this article for more 

There is so much opportunity available to those that take the opportunity to invest now when the price of the asset is low. 

Purchasing power of Bitcoin Won’t Erode like Fiat 

As the coronavirus brings China’s economy to its knees and causes global stock markets to fall, World leaders like Donald Trump urge the Fed for more quantitative easing. So much money is being printed and currently in circulation which will decrease the buying power of the U.S dollar. 

Just take a look at the purchasing power of the US dollar over the last 100 years. If you had a $100 bill in 1990, that would be worth around $3.48 today. Your $10,000 would only leave you with $348. That’s a 96.4% decrease in its buying power.

Bitcoin’s purchasing power on the other hand, with its built-in scarcity and limited supply, will not erode, but increase over time. This makes bitcoin and Tatcoin a far superior store of value when compared to fiat. What next? Stay more updated as we bring you value and information on how to hedge your money with Tatcoin and other crypto products.

How useful was this post?

Click on a star to rate it!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Leave a Reply

Close Menu