I low rates, or even negatives, push many people away from bank accounts. A very evident trend in most of the EU, where the policies of the European Central Bank have pushed a large number of savers to seek risky assets, in order to obtain interesting returns. A trend which has favored, for example, online trading, but not only.
In the United States the same thing is happening. With the lockdown of production activities and the massive aid plan decided by the administration Trump to try to give the economy a breather, the saving rate of US citizens is practically at an all-time high right now. However, it does not find an outlet in the traditional financial system. Bank interest rates are practically zero, forcing savers to seek alternatives.
Bitcoin, an increasingly practiced alternative
Among the possible alternatives identified, there is also the Bitcoin. If, in fact, digital assets in general are distinguished by considerable volatility, BTC has shown a remarkable resilience over the last few months, with some sporadic flare-ups to which the rise of recent days has been added, which is causing great expectations.
So much to push Bloomberg to affirm that the Americans are now ready to give up the stability of the dollar, just to participate in the race of Bitcoin. A stability which, moreover, now seems to be an urban legend.
The dollar falls, alternative assets grow
In fact, it is enough to look at what happened in July to better understand what is happening. The dollar, in fact, as recalled by the Financial Times, has gone through its worst month in a decade. Pushing a large number of people to espouse the idea of change their green tickets to Bitcoin, stocks and gold. Also because expectations, in light of what is happening on the health side, are for a long period of stagnation.
What could happen now?
A storming Bitcoin in the coming days, with analysts expecting a new rally of Satoshi Nakamoto's creature, could push many citizens to do the big jump. That is, entering a sector, that of cryptocurrencies, which offers great risks, but also the possibility of ripping substantial gains.
A perspective which, however, is viewed with some concern. If it is true that BTC is now considered like digital gold, it should also be remembered that big gains involve big risks. Many of those who today declare themselves willing to run them are not used to doing so. With the mental stress that this entails, the likelihood of making mistakes increases exponentially.
Volatility is not a gala dinner
Paraphrasing Lenin, one could say that market volatility is no gala dinner. Anyone who thinks they can easily snatch very high earnings must be aware of the fact that in financial activities only those who have a strategy, the right skills and the necessary discipline to be able to withstand the tensions. Features which too often are hidden in those who are beginners. Precisely for this reason, the investment in Bitcoin should also be carried out by obeying one simple criterion of prudence. For example, avoiding buying when the price is too high and investors are about to realize. How could it actually happen in the next few days.