How people in South Africa can beat Inflation
In South Africa the average interest rate of bank savings accounts are a modest 4.88%. The annual inflation rate is high on 5.9%. Thus by keeping your hard earned money in the bank, your money’s value is going down by 1% per year in real terms.
The South African Rand is devalued at 7.7% on average, per year, against the US $, this average is for the past 10 years!! If you thus invest in the US $ you are better off by 1.8% per year. This is thus a good option, but there are much better options!!
This is where stable COINS come in, and our favourite coin HBD!! (I see there is big noise on some stable coins as well as some liquidity pools loosing value, with TerraUSD @ $0.168, but our star coin stayed stable!!)
With HBD giving a 20% APR, coupled to the 7.7% devaluation of the Rand against the Dollar, it means South Africans can earn 27.7% annually. (I am not even factoring in compounding of HBD). With the inflation rate at 5.9%, it means a real return of 21.8% per year!! This means (again without compounding), that you will double your investment in just less than 5 years!!
This is a South African example, but this can work in a number of countries, where their currencies are in a freefall against the Dollar!!
Remember, I am an old railway worker and knows nothing about finances or crypto, thus use your own discretion before investing.
I hope you enjoyed the post and that you have a wonderful day!