Viewpoint | Deposit Charges, Negative Interest Rate Era and Bitcoin

I saw such a news a few days ago:

[Unable to bear the negative interest rate UBS will charge accounts with deposits exceeding 500,000 euros] UBS announced that it plans to charge an annualized 0.6% standard for accounts with deposits of more than 500,000 euros from November, 0.4% lower than the European Central Bank. The deposit interest rate is 20 basis points lower. As negative interest rates squeeze profits, the bank began charging for accounts with deposits exceeding €1 million in 2017, and now it has expanded its fee policy to more affluent customers. UBS also previously announced that it will charge a Swiss franc account with deposits of more than 20 billion Swiss francs.

It feels like a hard and wide bitcoin.

I have talked in the previous article that the era of negative interest rates has arrived. It was before that "actual negative interest rates" have arrived, and "nominal negative interest rates" have not yet arrived. What is the actual, everyone knows the name. And what is the "nominal interest rate"? The simple explanation is on the surface, the interest rate for you. Where is the difference between the two? The difference is in CPI, which means that inflation is not counted. simply put:

The money you have in the bank does not run out of inflation, and that is negative interest rates.

The actual negative interest rate has little effect, and the bank will still pay you at least interest, even though this interest is really rare. But when the era of negative interest rates hits, banks can't hold back the “surface zero interest rate” and they will start collecting taxes on depositors. At present, major developed countries including negative interest rates include Japan, Switzerland, Sweden and other major countries. In the next three years, many major countries will join the ranks. At that time, it will become commonplace for "saving money without charging interest."

When the era of negative interest rates comes, we don't have to panic because we have bitcoin. The birth of Bitcoin, using a never-inflationary currency concept to counter the global "necessary inflation" monetary concept, is not to give everyone a better choice?

One of the words that must be mentioned when it comes to negative interest rates is the “funded inflation rate”.

I believe everyone has heard of a word called "Eternal Bull Market". So what is the eternal bull market? After all, the word sounds really powerful.

The definition of the beginning of the eternal bull market is that the inflation rate of Bitcoin is lower than the inflation rate of the French dollar.

The simple understanding is that Bitcoin's "issue speed" is not as fast as legal currency, and people need bitcoin instead of legal currency, so bitcoin will only keep rising, so it is "eternal bull market".

Although this is a milk bitcoin, it is logically unobstructed. In fact, regardless of any factors, just looking at the price performance of Bitcoin over the past decade is actually — has been rising. It seems that we are already in the eternal bull market? But it seems that most people have not made money in it, why?

In fact, even if it is really an ideal eternal bull market that is always rising, not many people can make money. Let me put it this way, I ask you three questions:

1. How many bitcoins do you hold?

2. How much will you get off when you get up?

3. How much will you continue to get on the train?

Generally speaking, most of them will get off before 20,000 knives, and it will not be related to you. The third question, many people's answer will be "waiting for a callback on the train", then if there is no callback? Go up to your heart and panic, then get on the bus? The fruit of the victory may not have you any share.

In short, no matter how much wealth you put on the Bitcoin network, Bitcoin will never charge you management fees, and Bitcoin will save you from the heat of the negative interest rate era, so that you can't feel the collapse of the world economy. The shrinking of the financial world is as happy as a neutral country that has never had a war.

Author: William Chen