Foreword
Saving money is an easy and the laziest way that people do nowadays. If you ask anyone, get some advice for their financial advice.
Ordinary people will tell you to SAVE MONEY. Someone acting like a professional investor will advise you to gather your money and put it into a term deposit or even invest in funds to minimize the risk.
The disadvantage in Saving money, Term Deposit and Fund
Save money
The federal reserve will continue to enforce quantitative easing (Print fiat money). Then fiat money keeps losing its purchasing power due to the increase of money supply (In Q1 supply and Q2 supply) in the financial system and will lead to an inflation of the country.
The bank will lend your money to others and return you with meagre interest.
Term deposit
The interest rate is set by the central banks nowadays. Each bank might have an adjustment for the interest rate. It may not even earn enough interest to cover the loss of inflation, this measure is a waste of time, plus we could not relocate the money.
Reserving your purchasing power
Buy Gold, Silver & Bitcoin (Not exactly proven yet)
Before the era of paper fiat money, people used gold and silver to do their business, daily transactions.
Bitcoin is invented by Satoshi Nakamoto and the first cryptocurrency listed on the cryptocurrency exchange since 2009. It is a cryptocurrency that has a fixed amount of 21 million, and when time flies, the amount of bitcoin will continue to reduce due to the loss of passwords, storage disk damage etc.
Wanna know more about Bitcoin?
Click here for further details [basics of bitcoin 1].
Click here for further details [basics of bitcoin 2].
Thoughts
Whenever there is a financial crisis, the federal reserve always trying to increase the money supply (Quantitative Easing) and lower the interest rate, induce the large company to invest back (Capital injection) to the financial system to save the country economy. As a result, the country will suffer from a debt burden.
It is an extremely dangerous measure. I could not imagine how the government and the federal reserve solve the problem.
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