Banks are offering Negative interest rates! will this help BTC

[airdnasxela]

"What if I said I wanted to borrow $100 from you and pay you back $99 five years later? Would you do it?

I was kinda lost with this statement... So I basiy doesn't get what negative interest you're talking about until I rrad some comments and it enlightened me. Cause base on my understanding with the statement, omce you borrow you'll only pay lessen than what you've borrowed.

But it doesn't necessarily mean that because of this, people would automatically move in crypto. This could be positive towards crypto but it would not directly affect crypto I guess

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[bitbunnny]

Banks are changing their interest rates policy but I don't think that this would affect cryptocurrencies or Bitcoin in particular.
No matter what people are still depending on fiat money and attitude of banks doesn't mean they will choose Bitcoin as alternative. And with negative interest rates they would actually profit.

[flyingplows]

Negative interest rates are outrageous. Assets that lose value over time are not worth keeping, they are meant for using then. I think if times come when people will lose money for keeping them in banks instead of gaining (at least a little) it will be a demise of current banking system.

[o_e_l_e_o]

Negative interest rates are outrageous. Assets that lose value over time are not worth keeping, they are meant for using then. I think if times come when people will lose money for keeping them in banks instead of gaining (at least a little) it will be a demise of current banking system.

I don't think you understand how inflation works. Keeping your fiat in a bank results in a net loss as long as your interest rate is below the rate of inflation. With interest rates at a severe low for the last several years, the best rates you can get will give you an introductory offer of 1.5 - 2.0% APY, if you shop around. That rate will usually be cut to <1% after a year. With inflation sitting at around 2 - 3%, that means although the amount of fiat in your bank account goes up, the net value of your assets (your purchasing power) goes down.

Any interest rate below the rate of inflation is already a net negative. If you want to earn money you need an interest rate at least above 3% APY, which you will usually only get from longer term investments such as bonds or mutual funds.

[Daniel91]

I know that banks and even countries in Western Europe, like Germany, have started to introduce negative interest rates but I always thought that my country, Croatia, is very far from such a scenario.
Recently I heard that the Governor of the Croatian National Bank, Boris Vujcic, speaks about such an opportunity in Croatian banks also.
Since I have some savings, I am thinking of investing all this in bitcoin and thus avoiding negative interest and losing money.
A lot of people in Croatia still haven't heard or don't trust bitcoin so in the short run it won't help bitcoin but in the long run it might help.

[ardentvolcanoes]

Negative interest rates are outrageous. Assets that lose value over time are not worth keeping, they are meant for using then. I think if times come when people will lose money for keeping them in banks instead of gaining (at least a little) it will be a demise of current banking system.

No one wants to lose their money, interest will be lessen if banks failed to handle this situations, that will lead finding new ways or options to save money. Investment will be the very best option and aside from real states and insurance crypto also will have a piece of those people who are seeking for new place to put their money. There's  a lot of things to consider but chances is open for risky people to find interest in this industry.

[ttcsalam]

At present, everyone is investing in bitcoin with great interest. It is more profitable than backing interest rates in all countries. But the risk here is high. There is no risk to the bank. Not everyone knows whether or not to invest in this digital currency of Bitcoin. Because of that the bank is still alive.

[aces777]

Now that depositors have to pay money to keep their money in the bank, instead of receiving interests on deposits, people may be discouraged to put their money in the banks, and might want an alternative to store up their funds and get some interests maybe, so this could be could for Bitcoin, and other cryptocurrencies, as this would be a good way for them to achieve that.

[Mike Mayor]

<snip..>

If I remember correctly, the reason on why the Japan's Central Bank imposed negative interest rates was to encourage its people to spend since most of them are saving their money either in the bank or on their respective houses. Due to this phenomenon, there lacks an inflow of cash in the economic machinery which makes the prices lower and cheaper BUT no one spends their money.

This would be a good opportunity if Bitcoin were to be introduced as an investment alternative since people would be spending and purchasing bitcoins, just like what they are currently doing. It would be a both win-win situation to their economy and to the price of bitcoin as well.

I didn't know that. I thought they would be investing in things instead? Wouldn't that be much better and stimulate the economy? Surely in Tokyo people spend? I know there are a lot of old people living in japan compares to other countries so maybe they the ones that are saving? I can see people in rural areas saving. The people living in cities have to many flashing lights and adverts in their face all the time. It still makes no sense to me to have negative rates. It is just going to annoy people. I think it' a cheek. If I lived there I wouldn't even use the bank then I would juts invest my money and withdraw directly from there once a month to my bank and spend the money before too much negative interest incurs.

[jarhed]

Now that depositors have to pay money to keep their money in the bank, instead of receiving interests on deposits, people may be discouraged to put their money in the banks, and might want an alternative to store up their funds and get some interests maybe, so this could be could for Bitcoin, and other cryptocurrencies, as this would be a good way for them to achieve that.

As an alternative to all banks, now you can choose to invest in cryptocurrency. Very reliable investments will be Bitcoin and Ethereum. If you want more profit, then you need to invest in Altcoins with low capitalization.