That's right, Bitcoin address balances, which yield 0%, are now earning a higher rate of return than German government bonds! Bloomberg has the story here.
The Germans had a successful bond auction today which ended with the 2-year notes sold yielding a whopping -0.38%. That's right, NEGATIVE 0.38%. Further easing indicated by Draghi has been responsible for persistent negative interest rates in German Bunds.
The Germans had a successful bond auction today which ended with the 2-year notes sold yielding a whopping -0.38%. That's right, NEGATIVE 0.38%. Further easing indicated by Draghi has been responsible for persistent negative interest rates in German Bunds.
*GERMANY SELLS TWO-YEAR NOTES TO YIELD -0.38%, LOWEST ON RECORD
— Dorothy (@dorothyier) November 18, 2015
We are in a new world where deflation is the big threat in global finance. Multiple countries now have negative interest rates implemented in some way at their central banks. Commodity prices have fallen so low, with oil in the $40s. This is the perfect environment for bitcoin to thrive.
As governments continue to desperately cut rates as prices decline and unemployment worsens in places like the Eurozone, Bitcoin will be a reliable store of value as there are no storage costs and even though it doesn't earn a rate of return, 0% is better than -0.5%, or -2%.
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