this post was submitted on 27 Jul 2024
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Asklemmy
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I'm pro-fiat because it works. Crypto is okay, but it's too volatile, and has too many unknowns, to be a good investment vehicle. Crypto is only useful if you're actively buying things. Real estate is illiquid. Gold can't be used readily without being converted to a fiat currency; you aren't going to be able to convince any grocery store to accept an ounce of gold in place of currency. Treasury bills and bonds nearly always outperform base inflation, even if it's not by very much. If I'm reading things correctly, the current rate on short-term US treasury bills is about 2% over inflation. Longer term bonds tend to have higher yields. Both are lower than you could expect to get with a money market or index fund. And an index fund is going to have lower yield than a growth fund.
Almost everything out-performs base inflation rates over the long term, because if it didn't, no one would invest.
Totally understandable and why change something that functions