If someone had saved €1,000 at birth in 2006, that amount would be worth about 30% less now, 18 years later, due to inflation. Especially in the past two years, with inflation rates of 6.89% and 5.90%, that depreciation has accelerated.

Even before 2020, savers in Europe often faced negative interest rates. Even certain currencies before the euro were "the least bad option" in terms of savings. However, many people did not realize that their purchasing power was declining because they were focused on face value. Positive interest rates seemed good, but with inflation higher than interest rates, savers still lost purchasing power.

Since 2016, "safe" savings products, such as bonds and life insurance, have become mostly loss-making due to negative real interest rates. As a result, equity ETFs became increasingly popular. Still, investing involves other risks and requires time and knowledge. Bitcoin now offers a simple way to make saving attractive again. Although, of course, we should add that crypto obviously has risks that you need to know about.

The benefits of Bitcoin savings plans

Bitcoin, unlike euros and other fiat currencies, is a decentralized and scarce digital currency. No government, central bank or corporation can change the supply of Bitcoin. Unlike gold, which grows by 1.6% annually due to mining, the maximum number of Bitcoins remains forever limited to 21 million.

Although it is uncertain whether Bitcoin will be accepted as a means of payment worldwide, the adoption of Bitcoin ETFs in the U.S. in 2024 has increased its legitimacy in the financial world. What was once known only to a small group of enthusiasts is now seen by an increasing number of people as a valuable addition to their portfolio.

Historical data shows that saving in Bitcoin pays off in the long run. Someone who invested €100 monthly in Bitcoin since January 2019 would now have about 0.499 BTC, worth €46,100 - a return of 540%. Even someone who started during the peak in November 2021 still has a return of 198%.

Simple and effective savings

Bitcoin savings plans are therefore not a bad idea if you want to save for later. As long as you buy periodically, you don't have to worry about the perfect timing in terms of buying or what Bitcoin's price will do after the introduction of ETFs, or whether big tech companies like Microsoft get into Bitcoin. With a savings plan, you can quietly look ahead to the long term.