There is no doubt that if you live in a relatively high inflation state, it pays to make savings in Bitcoin rather than in local currency. As proof, we cite the Financial Times report, according to which Bitcoin has surpassed the top of 20,000 dollars that had arrived in December 2017, if we calculate it in Argentine peso.
What if we made savings in Bitcoin while we are in a low-inflation country, as in the eurozone?
Let's go figure it out.
So let's assume that two different people put aside every week 100 euros. One leaves them in euros, while the other, foolhardy, converts them into Bitcoin. Every Monday morning, the most... Prudent to put in the piggy bank or deposit to the banks 100 euros. The most... Daring, as Monday enters, from his computer converts his euros to Bitcoin *.
Let's take the worst-case scenario for the daredevil on the assumption that they both started in December 2017. That he was so ignorant or so unlucky, he started turning his euros into Bitcoin at the worst possible moment. At the top of 20,000 dollars.
So far, 77 weeks have passed. He who saves in euros, naturally, has €7,700 (77 weeks x 100 per week).
He who saves on Bitcoin, has gathered almost 1.5 Bitcoin. Actually 1.48 Bitcoin.
His first deposit was on Monday, December 18, when he gave €100 and received 0.006252736 Bitcoin. The next was Christmas, December 25th. However, because the bureaux do not close on weekends or holidays, it normally converted its €100 to 0.008412552 Bitcoin. The pattern continued until Monday we passed.
How much is Bitcoin worth that it has collected in euros? According to the price it had at dawn on Monday June 3, 2019, his savings are worth 10,724 euros! That's 39.28% more than the one you he saved in euros!
But instead of going to the worst-case scenario, let's figure out what happened in the most favorable scenario for the Bitcoin saver. That is to say, they were both starting in December 2018, when Bitcoin reached its recent lowest price. The weeks are now 26, so the euro depositor will have collected 2,600 euros. A Bitcoin saver will have accumulated 0.659343502 Bitcoin, worth €4,777.
In other words, the Bitcoin saver compared to the depositor in Euro would have 83.75% more money, although only 6 months ago, they started with the same amount.
If we started from 2011
But let's make it a little more interesting. Let's say we didn't start from last time alone, but our two savers started in August 2011 when the first Bitcoin-euro transaction took place.
What if we just saved €100 a month? The difference would have been launched... In the stratosphere. It would be 300 times more!
The depositor in euro would have collected €9,500 (95 months x 100 per month), and the saver in Bitcoin would have collected 403.8 Bitcoin, which today is worth €2,926,513!
Yes, you read well. One would have less than 10 thousand, while the other would be a millionaire! It would have been in his account nearly $3 million.
Saving just €100 a month, it would have 3 million in less than 8 years!
Let's take the bad script here. That he started saving near the absolute peak. Near the worst possible spot. On January 1, 2018, it would take 18 months to date. The euro depositor would have accumulated €1,800, while the Bitcoin saver would have money worth €2,681! Almost 50% more.
What's the meaning of this? That even in the worst of cases, if you miss in the most spectacular way in the time period in which you bought, with Bitcoin all you need to do is a little patience.
Is this a coincidence? This big difference in performance in the savings mentances we mentioned are random? Is it only about the exchange rate or is there something deeper?
Note that - at the time this article is written - you can buy all kind of services with bitcoin. For example, you can buy vpn services, hosting services, you can register a domain etc. Also new startups with VISA cards that let you spend your cryptocurrencies are popping everyday.
My estimation is that on 2020 bitcoin will rise to 100.000 USD and if you don't own any you'll lose the train buddy..
(Disclaimer: Btw, I am not a financial expert or anything.)