Low and negative interest rates have been a burden for account holders across Europe for some time. And it’s only getting worse, as the European Central Bank just announced a new rate cut to a record low of -0.5%. Private and corporate customers in many countries on the continent don’t have a lot of options to preserve the value of their holdings, at least not in the fiat money world. However, cryptocurrencies which have seen a revival this year offer a real alternative – one that can bring income instead of losses.
Interest Rates Freezing Deeper
The European economy never fully recovered from the 2008 global meltdown. What started as a subprime mortgage crisis in the U.S. the previous year, eventually grew into a large-scale international banking crisis followed by a worldwide economic downturn. On the Old Continent, it sparked a debt crisis which hurt countries using the common currency, the euro. Governments and central banks embarked on massive bailouts of financial institutions and other policies — such as a never-ending cutting of interest rates — to prevent a collapse of the traditional financial system.
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