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GBP inflation is currently less than 2%, and there are many very low risk options to account for it. The fact that money sitting in a checking account deprecia
by wils1245 9y ago
GBP inflation is currently less than 2%, and there are many very low risk options to account for it.
The fact that money sitting in a checking account depreciates due to inflation is a terrible argument for cryptocurrency. No one actually does that with any significant amount of capital.
- dharma1 9y agoGBP inflation is around 3%. However, due to the way inflation is measured with CPI, I think the actual figure is higher https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/october2017#main-points https://www.ons.gov.uk/economy/inflationandpriceindices/bull...
- wils1245 9y agoOk, fair enough, I was lazy in my Googling. But the point stands. Money yielding 0% and wasting away due to inflation is a straw man.
- cloakandswagger 9y agoA straw man for what? Once your net worth reaches a certain level, it would be silly to let it sit in any one asset, whether that's a specific currency or commodity or whatever. Diversifying with a deflationary asset like Bitcoin is a wise strategy, one that is likely responsible for its $160B market cap.
- dharma1 9y agoPeople who have surplus wealth usually have a mix of assets - stocks, bonds, commodoties, cash, property, and sometimes more exotic assets like art, collectible cars, cryptocurrencies, whatever. Everyone has their own preferences and risk appetite and as such a different mix of assets. Cash (at least major currencies) is one asset class that is relatively safe but tends to depreciate due to inflation, especially due to recent monetary expansion by central banks. Cash can also be easily seized, and this is a cause of concern for some. Contrasted with other asset classes that have yield, having all your net worth in cash would not be something you want to do.
- priitmaxx 9y agoAgreed