Cointelegraph survey shows that investing in savings instead of profit has been profitable for investors while Bitcoin has been profitable in all scenarios
Saving is one of Brazil’s most preferred investments, having recently registered a historical record of over R$ 1 trillion in investments.
However, although it is one of the most popular investments in the country, it is one of the least profitable and sometimes loss-making.
According to a CNDL survey, seven out of ten people keep money in their savings accounts, but their income tends not to be as expected.
Faced with Copom’s decision to reduce the Selic rate to 2.25%, the savings have adopted a new rule, now it yields 70% of the Selic rate while it is below 8.5% per year.
Thus, when Selic is above 8.5% per year, the savings will yield 0.5% per month + TR, just as it was before the new rule.
However, this year, with the updated yield of the modality, it becomes 1.575% per year.
This means that if the investment is R$ 1,000, the return in 12 months will be R$ 15.75 throughout the period.
Did you put in the savings? Then you have lost money
Thus, an investor who invested R$ 1,000 in savings on January 1 of this year has today, October 31, about R$ 1,013.08.
However, if this same investor had invested in Bitcoin, he would have had today 0.034248 Bitcoins or R$ 2,732.10, an increase of 273%.
Moreover, although at first it is possible to say that the savings „gave a profit“ when the profitability is put in front of inflation we realize that the investor had a loss.
In the case of inflation measured by the Consumer Price Index (Brazil) – IPC-BR the supposed ‚profit‘ of R$ 13 becomes a loss of R$ 11.
This is because in the period the R$ 1 thousand had a depreciation of R$ 24 with the inflation and, as the savings earned in the period R$ 13, this indicates that who is with the money in the savings is losing money.
The Cointelegraph made a comparison between Bitcoin and Savings against these indices used to measure inflation over the period and the result presents the BTC with a large advantage as profitability against savings.
The indices used were the Brazilian Consumer Price Index (CPI-BR), the Cost of Living Index (CPI), the Special Broad Consumer Price Index (IPCA-E), the São Paulo Consumer Price Index (CPI-Fipe), the National Consumer Price Index (INPC) and the Wholesale Price Index – Market (IPAM).
In all the indices Bitcoin, even with inflation, showed profitability above 100%, while the best result of savings was a ‚profit‘ of R$ 5.47. Check it out.
However, some experts in the crypto market argue that Bitcoin Cycle may not be the best asset to ‚replace‘ savings.
This is the case of Mariano Di Pietrantonio, Marketing Manager for Latin America at the Maker Foundation.
For Pietrantonio stablecoins pegged to the US dollar have great liquidity and global marketing, thus ensuring that the investor can use his money anywhere in the world.
„As the name implies, stablecoins are cryptomoins tied to a stable asset like the US dollar. But because they are created in blockchains that track their supply and movement, they maintain the advantages of cryptomaps: digital, global, easily transferable, and decentralized,“ says Mariano Di Pietrantonio, marketing manager for Latin America at the Maker Foundation.
Nadia Alvarez, also at Maker, says stablecoins help ‚escape‘ from Bitcoin’s volatility.
„Unlike Bitcoin, whose value fluctuates with supply and demand, generating large variations, the Dai is always pegged to the dollar. In other words, if you buy in real, you will pay the dollar amount in Brazil. Moreover, with a decentralized stablecoin, people can see everything in the blockchain. Anyone can do a real time audit“, says Nadia Alvarez, business development representative for the Maker Foundation in Latin America.