What the interest rate cut means for bitcoin
|Matúš Kopalko|source|6148x
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What the interest rate cut means for bitcoin

The Federal Reserve System cut the interest rate for the first time since the global financial crisis ten years ago. It is a clear sign that central banks can manipulate money at will. Bitcoin cannot, since the total supply of bitcoin is limited and will never increase.


Here are 3 reasons why to invest into bitcoin:

1. Low inteest rates depreciate your savings

Low interest rates are meant to support expenditure and investments, not savings. Currently, the best savings accounts in the U.S. offer only 1.9% interest and it will drop further now. At the same time, Fed is trying to achieve a 2% inflation rate. Therefore, your savings will grow slower than everything else around you and their value will decrease.

2. Decreasing value of the dollar

The index of the U.S. dollar has showed a decreasing trend over the past 50 years. On the other hand, the value of bitcoin keeps increasing. No central authority can devalue it; its value depends solely on demand. From a long-term perspective, this manifests itself in constantly rising yields for bitcoin holders.

3. Bitcoin supply is limited

Bitcoin supply cannot be manipulated or expanded at will. It is strictly limited to 21 million. Bitcoin will never be created or “printed” again. The daily supply of bitcoin is programmed and kept under control by an algorithm.

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