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People in general don't hold gold though. Tresuries hold gold, but everyday people are not very interested in preserving the value of their 200k in savings. The
by twice_benny 6y ago
People in general don't hold gold though. Tresuries hold gold, but everyday people are not very interested in preserving the value of their 200k in savings.
They want a decent yield of at least 3%/annum.
- miguelmota 6y ago2-3% yield is the minimum needed just to keep up with inflation. Right now anyone can convert their USD to a stable-coin and get a safe yield of 8-12% with automatic lending protocols [0]. Gold is physical material people need to keep safe and converting back and forth from fiat is not something that's instant. If it was more convenient then people would hold it. Bitcoin solves this. https://defirate.com/lend/ https://defirate.com/lend/
- twice_benny 6y agoYes and people can also invest in high yield funds to get just as much with probably much lower exposure to risk. And no, people don't need gold.
- miguelmota 6y agoWould love to hear more of these traditional high yield funds with less risk that you're speaking of. People don't need gold in particular, but they need a place to store value without friction.