The saddest thing about the education system in most countries is that students are not taught how to manage their money. The systems are geared towards developing and increasing the number of employees in the job market without considering their financial stability. The best advice people should learn is how to save money.
People should learn to save money rather than live paycheck to paycheck. Saving has very many advantages for people and their financial situation. Some of the advantages include; the first is that people have money to spend in case they lose their main source of income. This amount should be ready, meaning the amount should be easily accessible. The second advantage is that people have money to invest when new opportunities develop. Opportunities knock once and might be available for a short time. A good example currently is the development of Meta Verse.
Many people who have savings have invested in Meta and might make a lot of money as the value of the technology rises over time. Savings also help people in case of emergencies. People should consider ensuring that the money they save retains its value for future purposes. A good example is what happens to people in Russia. Some people had saved a lot of money before the Russia-Ukraine war started. As soon as the war broke and sanctions began to affect the economy, the value of their money dropped drastically. The benefit is that they had money to help feed themselves and their families, but their quality of life was reduced.
In the past, people used gold as a store of wealth. This is still being done, but gold is expensive, and people cannot afford the price of gold bars and coins with their savings. With the development of technology, a better solution has developed. Blockchain technology is the solution to the problem. Some of the benefits of placing savings in cryptocurrency include the following:
The most common and advised method of saving in the world is depositing the amount in a savings account in a bank. This means that the money is stored in the local currency or another currency the person is saving chooses. But one of the main problems with this is that local or the normal currencies used by different countries in the world are prone to inflation. Inflation is where money loses value due to several factors.
The main factor causing inflation is when a government chooses to print more money. This leads to the market being flooded with money chasing a few commodities. A good example of how this could be an issue was seen in the late 2000s in Zimbabwe, with the problem getting out of hand until a 100 trillion Zimbabwe dollar note was printed.
People might think this is a long-forgotten problem, but they have forgotten the effects Covid-19 had on the economy. Most countries had to print more money to ensure they had enough to save people, companies, and other resources from bankruptcy. Around 30% of the total American dollars in circulation were printed during the pandemic.
The effects might not be affecting people yet, but people will notice the change in a few years as local currencies lose value. Cryptocurrency has the potential to solve this problem. When people save their money, they need it to retain its value for as long as possible. They might be saving for a project they will do years later, and if the money they save loses its value, they will not be able to accomplish their goals.
The best thing about cryptocurrency is that it holds value since it is generated through blockchain. Governments will not be able to print more of the currency, and long-term savings in cryptocurrency leads to an increase in value rather than a decrease in value, which leads to the next point.
The second advantage is that when people place their savings in cryptocurrency, their money’s value can increase over time. A good example is someone who saved money in Bitcoin when it was initially introduced. One coin was initially worth cents, while one will be over $40,000 in 2022. If they were saving up for a project in 2022, the value of their money would have a 1000000% increase in ten years. This is not the only way cryptocurrency increases value.
Most banks in the world offer less than 20% interest on fixed deposit accounts. People might also offer to lend their savings in cryptocurrency form and make almost 100% profit annually. All these benefits show that people may create passive income with their savings by placing their investments in cryptocurrency.
The third benefit people may reap when considering saving cryptocurrency rather than normal currency is that the money is readily available. They can access the currency anytime as long as they have created a cryptocurrency wallet.
Considering that more countries and businesses are embracing crypto globally, people will soon be able to spend their crypto for goods and services without converting them. This might be beneficial to people trying to save money to use on a trip or a vacation, or any other project, either locally or internationally. They might save up while they are at home and be able to access their money while they are on their vacation anywhere in the world.
Once again, the Russia-Ukraine war provides the best example of this. If people in both countries had saved their money in cryptocurrency form, their money would either held its value or increase in value while their economy failed. They would not have to rush to banks and ATMs to withdraw money, as seen in both countries in the first few days of the way. To sum up, saving with crypto is both the present and the future of asset saving. People need to be educated about the importance and the need to start saving and owning crypto coins.