Bitcoin: new form of investment for the poor and ordinary people?
Cryptocurrencies are undergoing a period of transformation, accelerated due to the coronavirus pandemic that is passing through the planet. Cryptocurrencies like Bitcoin are increasingly accepted by institutions and services as a means of payment, from e-commerce stores to online casinos. And there are those who are already pointing to a new vocation for Bitcoin, in addition to casinos (especially because anyone who wants to have fun can play free online bingo without worry): a form of financial investment accessible to everyone.
The suggestion was launched by analyst Max Keizer. A well-known American anchor and filmmaker, he has extensive experience in the financial sector and has been creating documentaries on the subject for several years. His latest news, which he launched simply via Twitter, was the suggestion that Bitcoin should be viewed as an investment destination by people with no capital and no personal tradition in this area.
The danger of inflation
Keizer launched an alert for the United States that may also be valid for Brazil. Even more so for our country, used to living under an inflation regime where the money accumulated with the sweat of work is losing its value. Governments of countries whose economies are hard hit by Covid-19 will have to invest in aid to their companies and peoples. This will be a short-term solution, but in the long run it may bring inflation.
It is a difficult situation for everyone, certainly. If there are high levels of inflation, the savings of citizens, however small, will eventually lose their value. Although they are yielding interest, there is a risk that this interest will be lower than the inflation rate.
The Bitcoin advantage
Keizer points out two advantages of Bitcoin for those who are not rich, at the present time. The first is the fact that electronic money is not dependent on a central bank and is therefore immune to inflation. Its operating formula was closed at the time of its conception, reminiscent of the gold standard system of the 19th and early 20th centuries.
The second is the fact that it is a form of investment accessible to everyone. To invest in real estate, for example, you need to have enough capital to buy a property without taking out a loan. In order to invest in oil or stocks, a minimum amount is also generally required. But in the case of Bitcoin, literally only a computer with internet access and basic knowledge of using computers is needed. You don't need a purse full of money.
Is Bitcoin not too expensive? Right answer, wrong question
When it comes to saying that a Bitcoin is costing around R $ 56,800, it seems that it makes no sense to say that anyone can invest. But that is the wrong question. The question that must be asked is whether Bitcoin allows anyone to invest, even if it is a very small amount in reais.
The real, the dollar and other currencies have subdivisions of 100 units, called cents (or cents, in the case of the dollar and the euro). Although it is possible to calculate percentages and do business with subdivisions of the cent, it does not have a currency that represents this abstract unit. In the case of Bitcoin, it is not so. The smallest possible unit is 0.00000001 BTC. At the current exchange rate, R $ 1 allows you to buy about 0.00002 Bitcoins.
And this is where Max Keizer’s argument comes in. R $ 100 is not a fortune, but with inflation it will be worth even less over time. If they are invested in Bitcoin they may, on the contrary, continue to appreciate. That is the intention of an investment: to put money safe from any attack or depreciation.
Max Keizer recalls that anyone who invested in Bitcoin in the early 2010s saw their money appreciate immensely. It is likely that there will be no new millionaire appreciation. But isn't it a good thing to protect some money from inflation?
This source of this article is portaldobitcoin.com.