If you have gone through the financial news during past 2-3 years, you must have noticed an slightly off term being used frequently in the headlines.
The term, ‘negative interest rates,’ and as they are exactly in sound: in various countries, lenders can pay the intermediate companies as well as the lenders for dividing into two parts all of their cash, and even when the lenders are risking themselves through the borrowing.
And this might give a little bad feeling, however, for a majority of life of the negative interest rates, they were merely affecting the highest levels-those individuals with highest net-worth as well as each of the bank itself. However, this is not becoming a bit different.
Reports now shows that the small consumeers-like me and you-have started being influenced by the negative interest rates, and that means that a little savings, and they have been wasted with time through negative interest rates. However, Bitcoin looks like fixing this issue.
Negative Interest Rates Might Hit Consumers:
And, ever since the huge recession of 2008, the central banks, via the traditional standards, have been acting a little off touch. And to ensure the financial system being stable as well as prosperous, the central banks worldwide have come up with two key monetary steps: 1) Easing Quantitatively. 2) Less interest rates, which is seemingly being established for stimulating the growth. And the later has just began a little controversial through news that the German bank has come up with the interest rates that are negative on the saving accounts- and yes! The such mom accounts & pop German customers.
And according to the report via the RFI, the Raiffeisen cooperative banks in the Fuerstenfeldbruck, adjacent to Munich is now levyng -0.5% annual rates on such holders, from large to small. And the outlet confirms that the only new consumers and the savings of the bank is going to be affected, however, this step is the rare of its type regardless.
Negative interest rates is now hitting each of the average saving individuals.
And the first German ban is now going to collect a charge on deposit, of -0.5% on all the saving accounts in which a deposit of €1 or more is being made.
Yet, the bitcoin seems to be experiment out there?-Rhythm(@Rhythmtrader) November 20,2019.
He believes damaging interest rates are the straw that will break the camel’s back a legendary Bitcoin industry commentator, hodlonaut, broke down. Your income is taxed, your resources are taxed, everything is with time and then you slowly watch your funding evaporate because of interest rates as he explained.
This financial imbroglio comes shortly after a Denmark bank began to charge customers with over $111,000 in their bank account a 0.75% annual fee.
Once it seems that a small section of the world is being affected by interest rates, the virus is spreading, so to speak. President Donald Trump wrote Twitter the Federal Reserve needs to’get our interest rates not, or down to ZERO .’ This assertion came soon after the former chairman of the Federal Reserve, Alan Greenspan, said that it is only a matter of time prior to the U.S. (and consequently the rest of the world) implements negative rates of interest on a widespread scale.
Bitcoin, the Perfect Solution
This was corroborated by Jim Reid, Head of Credit Strategy in Deutsche Bank, who earlier this year said that when central banks are aggressive with their monetary policy monies and investments like gold and Bitcoin turned into somewhat undervalued.
Many say that at such tumultuous instances that are macroeconomic, Bitcoin is the perfect answer. Also, some think that policy will lead to rampant inflation in autonomous monies, validating the need for something such as Bitcoin, which is disinflationary and non-sovereign.