Because they are unable to adjust their savings account interest rates to account for fluctuations in inflation, traditional banks are shortchanging their clients.
These accounts are spread throughout 0.3% of the US on average. In light of the current economic climate, this is the nominal rate.
During the lockout, UK consumers saved an additional £190 billion, although some may recall that the value of their cash rainy day reserves rapidly declined owing to inflation.
Savings can either continue to depreciate in value as a result of inflation, the "silent thief," or they can seek out alternatives that will hold their value over time.
It may also be time to take into account other investment opportunities and asset classes that are independent of inflationary swings
and especially resistant to the risk of government deterioration during periods of political or economic unrest.
Bitcoin is one such alternative when used for long-term savings, and when included in well-rounded portfolios intended to combat inflation and geopolitical unpredictability.
When banking behemoths fail to hike interest rates despite the central bank raising the base rate, they are deceiving regular investors.
Government-issued currencies are a further difficulty with saving and investing through traditional banks since they are vulnerable to counterparty risk and have almost no value.
Government central banks face the danger of losing value owing to inflation or losing all of their value in the event of hyperinflation since they issue money on demand.
The restricted supply and hard-coded monetary policy of bitcoin, on the other hand, provide the currency an anti-inflationary and store-of-value quality akin to gold.
In circumstances with zero or low interest rates, bitcoin often performs well. Since the 1990s, central banks throughout the world have established low or even negative interest rates
In these low interest rate circumstances, one of the most important lessons learned by investors is to stop wishing interest rates would go up and manage your capital appropriately.
Due to its decentralised and limited nature, which practically protects it from inflation and interest rates imposed by central banks, Bitcoin is a sensible choice for these reasons.
Banks have grown to be somewhat of a pain in the side for many investors ever since the financial crisis of 2008.
European citizens are less inclined to trust conventional financial institutions. According to a YouGov survey, just a tiny number of Britons believe traditional banks are in their best interests.
Unsurprisingly, one in four investors among the generations of Millennials, X, and Z are considering cryptocurrency as their preferred asset class.
These generations have less faith in centralised organisations like banks. This is a result of the persistent economic unrest they have encountered throughout their lives.
Moreover, Bitcoin enables investors to profit from self-management, where they are the only ones with ownership and control of their assets.
This is not the case with conventional banks, and consumers may feel out of control during times of economic uncertainty or, worse, financial crises.
National digital currencies with no boundaries, such as Bitcoin, are gaining popularity as a store of wealth.