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. 
Topic: Banks are offering Negative interest rates! will this help BTC (Read 575 times)
October 03, 2019, 06:35:21 AM
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.
October 03, 2019, 03:06:13 AM
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.
October 01, 2019, 12:12:41 PM
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.
October 01, 2019, 11:39:31 AM
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. 
October 01, 2019, 11:13:54 AM
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.
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.
October 01, 2019, 05:48:18 AM
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.
October 01, 2019, 04:53:32 AM
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.
October 01, 2019, 04:17:02 AM
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.
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.
October 01, 2019, 04:11:17 AM
"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
October 01, 2019, 01:35:53 AM
There’s been a domino effect of monetary policy of high-interest rates for centuries creates an unstable economy that occurs among the people due to the massive amount of debts. The central bank has been stockpiling so much money for centuries which could giveaway to low-income residents. Negative interest rates motivation was to refinance the government, corporations and even citizens to stimulate the economy in order to battle the global financial crisis and to counter inflation in their currencies. Countries in Europe such as Switzerland, German, Denmark, Sweden and from another side of the world, Japan have allowed rates to fall slightly below zero as they have low inflation, it's a good solution though.
October 01, 2019, 12:57:12 AM
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.
September 30, 2019, 11:47:21 PM
Bank, in my opinion, is just a place to save money, of course, we will be hit by interest rates. I know Bitcoin, I prefer my money to buy Bitcoin and Altcoins. Although in this industry it has a risk, it is able to generate many advantages when compared to the Bank.
Perhaps in the future will be more people who choose Bitcoin to place investments. Bitcoin has a very good development and can be used for payment media. We know already many large corporations adopt much of Bitcoin. Bitcoin is a good payment and makes a profit.
Perhaps in the future will be more people who choose Bitcoin to place investments. Bitcoin has a very good development and can be used for payment media. We know already many large corporations adopt much of Bitcoin. Bitcoin is a good payment and makes a profit.
September 30, 2019, 11:06:42 PM
Bank always give negative effect for costumer but they have other option how to keep money safe, by saving in bitcoin maybe bank will be less interested and many people want to hold their assets in bitcoin.
September 30, 2019, 10:05:32 PM
I am not fully understanding this. Slight inflation is good for economy in some way and negative interest would be disaster.
However, they must have thought it through a lot. Don't know how it will end.
Let days say their words.
However, they must have thought it through a lot. Don't know how it will end.
Let days say their words.
They basically want to charge us to "protect" our money. Se we pay the bank back 1% a year. It's an absolute joke. It is cheeky as hell. The bank will ask you even at prime maybe 10% and that is a very good rating. That is not enough and they want to make more so they decide not just to not give interest but to charge it too. Mostly the bank gives 5%-8% interest for you and loans it for 10%-22% so they already make
10%-5%= 5% and 22%-8%=14% so they make between 5%-15% on peoples holdings when they loaning it. Now they talking about going down form 5%-8% to -1% that is a crazy amount.
If this happens people will have little reason to use banks and it would be better to just invest your money. It will lead to more people investing in things. Better to hold stocks that will slowly increase or even stay the same over time than risk a guaranteed -1% with the bank.
September 29, 2019, 07:38:47 PM
Negative interest rates will make people lazy to save money in the bank, they will find out safe and profitable ways to save their money
of course this will have an impact on bitcoin, they will save money in bitcoin because saving money in banks with negative interest rates will only reduce their money.
of course this will have an impact on bitcoin, they will save money in bitcoin because saving money in banks with negative interest rates will only reduce their money.
September 29, 2019, 07:28:52 PM
I am not fully understanding this. Slight inflation is good for economy in some way and negative interest would be disaster.
However, they must have thought it through a lot. Don't know how it will end.
Let days say their words.
However, they must have thought it through a lot. Don't know how it will end.
Let days say their words.
September 29, 2019, 07:12:37 PM
I don't know why anyone would agree to a negative interest rate, when the retail inflation remains in positive.
because they usually have no other option. they aren't just going to pull their money out of the banks and put it in their mattresses! that wouldn't be safe nor convenient. we have to use banks since we are stuck using fiat and knowing that we need them they can do anything they want.
that is why they are scared of bitcoin, because they know bitcoin showed people that they can not-need banks!
Thank you for explaining this I was confused. Wow banks are evil AF. I have always thought so but man this is just cheeky. I think I will start protecting peoples money from my home and buying a huge security system and some massive dogs. That is what it will come to, private unofficial banking or simply to crypto which is where it will really go. People will rather hold their funds in crypto and it will have to be some sort of stable coins though I do not even understand how stable coins work. Perhaps it can be tied directly to the value of the USD or gold or something? Even with negative interest as a deterrent I still think most people will take that over crypto volatility.
September 29, 2019, 05:08:15 PM
Rates below zero and QE means inflation
In a case of inflation bitcoin price will increase same like in a case of QE. With lot of printed money apetit on risk is increasing
Generally fiat currencies are losing his purchase power that is maybe reason why bitcoin price is rising overall
In a case of inflation bitcoin price will increase same like in a case of QE. With lot of printed money apetit on risk is increasing
Generally fiat currencies are losing his purchase power that is maybe reason why bitcoin price is rising overall
September 29, 2019, 04:23:53 PM
I pulled/quoted some of the article under the link
https://www.yahoo.com/finance/news/negative-interest-rates-japan-germany-france-150324580.html
"What if I said I wanted to borrow $100 from you and pay you back $99 five years later? Would you do it?
Hell no!
And yet this is exactly what’s happening right now in the banking systems of Japan, Germany, France, and other European countries.
Negative interest rates — where the lender gets paid back less than they’ve loaned — now add up to 30%, (and counting), of the global tradable bond universe, according to JPMorgan (JPM). You may have seen for instance that Germany just sold the first negative yielding 30-year bond issue.
In case you’re wondering, yes, this is crazy.
“It’s really unusual and really distorting the global financial system,” says Torsten Slok, chief economist at Deutsche Bank Securities (DB). “I spend all my time talking about it.”
This is not going to end well
Negative rates are counterintuitive, unprecedented — and to my mind — mind-bendingly insane and downright scary. They are like a parallel universe where everything you’ve ever learned about finance and human behavior is turned upside down. ..."
Note I was amazed to read this new twist on reality.
Can you imagine buying a negative yielding 30-year bond issue?
I can't but germany did
wtf?
Well for an instance it would look fancy to people thinking of the fact that you can take a loan for yourself worth 100$ and return back $99 after 5 years. But it's a catch here. Interest rates on Loans are set to compete with inflation in the economy. Which means the rate of interest is a bit higher than rate of inflation. Now, In a scenario of negative interest rate signifies deflation in Economy. Which means thing would get cheaper in future. So the banks adjust themselves to set a rate less than deflation rate to gain more. But this situation of deflation is short lived maybe for a year or two because economies can't survive on deflation. Either it will self balance itself to a mode of equilibrium or an Budgetary Injections would be needed to increase aggregate demand otherwise economy would implode. If you think it in a wide picture yes it might help btc because economies won't be able to run in such a situation but this is a self rectifying situation so it might not have any real impact on btc. https://www.yahoo.com/finance/news/negative-interest-rates-japan-germany-france-150324580.html
"What if I said I wanted to borrow $100 from you and pay you back $99 five years later? Would you do it?
Hell no!
And yet this is exactly what’s happening right now in the banking systems of Japan, Germany, France, and other European countries.
Negative interest rates — where the lender gets paid back less than they’ve loaned — now add up to 30%, (and counting), of the global tradable bond universe, according to JPMorgan (JPM). You may have seen for instance that Germany just sold the first negative yielding 30-year bond issue.
In case you’re wondering, yes, this is crazy.
“It’s really unusual and really distorting the global financial system,” says Torsten Slok, chief economist at Deutsche Bank Securities (DB). “I spend all my time talking about it.”
This is not going to end well
Negative rates are counterintuitive, unprecedented — and to my mind — mind-bendingly insane and downright scary. They are like a parallel universe where everything you’ve ever learned about finance and human behavior is turned upside down. ..."
Note I was amazed to read this new twist on reality.
Can you imagine buying a negative yielding 30-year bond issue?
I can't but germany did
wtf?Jump to: