What is the Silver Lining About Bitcoin (BTC)?

People are forever in the search for assets which have abundant evidence for having preserved wealth for generations. While investing money in banks and other investment projects is one thing, the last thing that banks will want is to see money laying around doing nothing. There are lot of things to think about ranging from how to protect capital and eliminate risk? Where to park money? Whether to buy commodities or equities? How is the value of assets expressed?

Peter Schiff expressed: “Those who will lose the most are retirees who think they’re playing it safe in cash, bonds, or annuities. They are about to be wiped out by inflation. Preserving cash means nothing if the cash preserved loses its purchasing power. For those people retirement will be very short.”

Money Printing and Bank Expanding Money with Debt

Printing more money causes inflation. Putting more money into circulation causes inflation. So, protecting value against inflation is the most needed thing. Banks keep expanding money by debt and increasing interest rates. Credit card companies keep increasing credit limits on all accounts which people did not really ask for.  Many people feel it is okay to live frugally and economically than losing money living in credit.  So, the search for a reliable asset to park money continues. That asset will send the value of your investment increasing.

People are not willing to increase their purchasing power by borrowing and eventually paying more than what the product is worth indirectly by paying interest. Due to inflation more and more people are also moving to higher tax brackets.

Money Sitting Without Expanding

Those who have no cash at all need not worry about inflation and other stuff.  All they are looking for is employment and the next step to make some money to make ends meet. However, those who have accumulated lot of money and those who have money laying around which is not needed in the immediate now want to do something with their money.  Just like banks, they do not want to see their money sitting simply without expanding.

With growing inflation, working loyally in an employment and retiring with pension funds is not magic anymore.  Working until one dies is not possible either. People keep eating each other’s heads asking for solutions to invest in precious metals, stocks, commodities, bonds, debts cryptocurrencies and Bitcoin. The search for the best store of value continues. For now, it appears that Bitcoin is the silver lining.