{"id":416392,"date":"2020-02-28T22:00:12","date_gmt":"2020-02-28T22:00:12","guid":{"rendered":"https:\/\/uniquehot.com\/?p=416392"},"modified":"2020-10-07T11:26:47","modified_gmt":"2020-10-07T11:26:47","slug":"negative-interests-rates-becoming-the-norm-bitcoin-doesnt-punish-savers","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/negative-interests-rates-becoming-the-norm-bitcoin-doesnt-punish-savers\/","title":{"rendered":"Negative Interests Rates Becoming the Norm; Bitcoin Doesn’t Punish Savers"},"content":{"rendered":"

A relatively new economic stimulus intended to promote growth is fast becoming the norm around the world. The proliferation of negative interest rates<\/a> at central banks in Europe and Japan makes an increasingly strong case for Bitcoin.<\/p>\n

Negative interest rates are supposed to provide incentives to invest and by extension to encourage economic growth. However, the policy also functions as a direct attack on savers.<\/p>\n

Bitcoin Doesn’t Charge You to Hold…<\/h2>\n

Negative interest rates have been gradually becoming more prolific worldwide since Sweden’s central bank first introduced them in 2009. The seemingly nonsensical policy is a drastic step to encourage borrowing, and therefore spending, in an economy.<\/p>\n

When a central bank charges negative rates, holding money at the institution becomes costly. The idea is that market particpants will put their capital to work in the economy, promoting growth.<\/p>\n

Yet local banks often pass their own increased costs on to their users. The policy effectively becomes a tax on the cautious, whilst benefiting those more reckless.<\/p>\n

As highlighted in the following tweet by popular Twitter-based Bitcoin market analyst PlanB, the entire yield curve in Germany is now negative. The cryptocurrency proponent says banks in the nation are already charging users to hold onto their money.<\/p>\n

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Where I live the entire yieldcurve is negative: 1Y interest rate, 5Y, 10Y, 30Y all below zero. Soon in US too. This is a problem because banks already charge negative rates on savings accounts. Also, pension funds have trouble making enough return. #Bitcoin<\/a> could be the solution. pic.twitter.com\/C3tbozEG0n<\/a><\/p>\n

— PlanB (@100trillionUSD) February 28, 2020<\/a><\/p><\/blockquote>\n