But what if there was another answer? A way to make stable wealth creation in a sea of volatility.<\/p>\n
Just how volatile is crypto?<\/strong><\/h3>\nBitcoin has seen its fair share of ups and downs over the past 10 years, and these price swings are explained by something called volatility. When looking at past Bitcoin volatility, we use \u2018Historical Volatility\u2019 to paint us a picture of how risky the asset is.<\/p>\n
Historical volatility is an indicator to show the extent at which a price may diverge from its average value in a given period. Hence, increased price fluctuation results in a higher historical volatility value.<\/p>\n
Volatility in crypto is high when compared to traditional assets in specific sectors. Bitcoin has often been compared to Gold, Banking or Tech, so it\u2019s only fair to compare those volatilities.<\/p>\n
If we use spot Gold (16% 90-day vol), JP Morgan (24% 90-day vol), and Tesla (70% 90-day vol) as a proxy for Gold, Banking, and Tech, we can see that Bitcoin (95% 90-day vol) clearly has superior volatility. So based on historical volatilities investors now know that the returns of Bitcoin fluctuate by approximately 95% quarter-over-quarter (90-day vol).<\/p>\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/07\/BTC-90-day-historical-volatility-scaled.jpg\")
<\/a><\/p>\nVolatility was worth its weight in gold<\/strong><\/h3>\nAlthough this volatility may scare potential investors, many have been rewarded greatly for this risk. Bitcoin has seen a 115% increase year-over-year over the last 10 years (+211\u00a0000% total return), making it the best performing asset class in the last decade.<\/p>\n
But if volatility isn\u2019t your game, you can rejoice! Because there\u2019s also a stable way of growing your wealth using cryptocurrencies, namely stablecoins.<\/p>\n
Stable coins \u2013 Stable growth<\/strong><\/h3>\nStablecoins are a\u00a0type of cryptocurrency\u00a0<\/a><\/strong>programmed to track the value of another asset like government monies or gold.<\/p>\nFiat-collateralized stablecoins are cryptocurrencies backed 1-to-1 by an underlying government currency (like USD or EUR) stored in a traditional financial institution.<\/p>\n
Simply put, stablecoins are a digital version of fiat money and are pegged to that currency. For example, USD Coin (USDC) is a stablecoin that is pegged to the US Dollar, and as such, its value is $1.<\/p>\n
The South African saviour<\/strong><\/h3>\nSouth Africans have a unique need for US Dollar exposure, seeing that the South African Rand depreciates against the US Dollar roughly 5% a year\u2026 every year. Something that\u2019s been going on for a while now.<\/p>\n
This means that it\u2019s getting increasingly difficult for South Africans to accumulate international wealth while they save in a currency that is making them 5% poorer every year.<\/p>\n
This is why you may hear the word \u2018Rand Hedge\u2019 being thrown around your dinner table. In essence, this means that you get exposure to an asset that \u2018hedges out\u2019 this 5% leak.<\/p>\n
The graph below shows the effect of holding your wealth in Dollars vs Rands over the last 10 years.<\/p>\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2021\/07\/R1-000-invested-in-rand-scaled.jpg\")
<\/a><\/p>\nIf you had taken your Rands, converted them to Dollars (10 years ago) and just kept them earning zero interest, they would be worth R2100 today, while your Rands would still be worth R1000.<\/p>\n
That means you\u2019ve lost quite a bit of buying power over the last 10 years if you chose to hold your wealth in Rands. In fact, you\u2019ve lost +7.6% year-on-year and 115% in total.<\/p>\n
Stablecoins can help stop this wealth erosion and make it work for you, not against you.<\/p>\n
By simply taking your hard-earned Rands and converting them into Dollars, you are increasing your wealth by +7.6% a year over the last 10 years.<\/p>\n
But it gets better!<\/p>\n
With the creation of stablecoins comes the creation of Savings accounts.<\/p>\n
Let\u2019s Save <\/strong><\/h3>\nWith stablecoins, comes the opportunity to create savings accounts or \u2018Defi Savings Vaults\u2019 as Revix<\/a><\/strong> likes to call them. These Savings Vaults offer\u00a0a fiat denominated saving account that earns an interest rate well above market (up to +7%).<\/p>\n\u201cStablecoins have allowed many South Africans to win two-fold. One, they get to hedge out their Rand risk and pick up an extra 5% year-on-year just by not holding a devaluing currency.<\/p>\n
Two, they get to put these US Dollars in a savings account that can earn between 2-7%, above and beyond the +5% saving they get from not holding Rands. That\u2019s a possible +13% net gain every year.<\/p>\n
That\u2019s a pretty big deal. Over 20 years, that 13% would translate to a +1 100% gain\u201d – Brett Hope Robertson, Investment analyst at investment platform\u00a0Revix<\/a><\/strong>.<\/p>\nWhere can I find these solutions?<\/strong><\/h3>\nInvestment platform Revix<\/a><\/strong>, understands how hard it is to save, and saving in Rands can be a disheartening task when it comes to holding a weakening currency.<\/p>\nAt Revix<\/a><\/strong>, you can gain access to USDC<\/strong> as a stablecoin<\/strong> solution.<\/p>\nUSD Coin (USDC) is a 1:1 representation of 1 US Dollar and you can always redeem 1 USDC for US$1.00, giving it a stable price.<\/p>\n
Take advantage of this launching, as Revix will be offering it as a fee-free product, which makes it better and accessible for you.<\/p>\n
Revix<\/a><\/strong> is also releasing a USDC Flexible DeFi Savings Vault.<\/p>\nThis is a US Dollars denominated saving account that offers an interest rate above market (Prior 12 months: 4.33%) with no lockup periods.<\/p>\n
So if you are looking for a Rand hedge and a stable way to grow their wealth, then this is the product for you.<\/p>\n
Through Revix<\/a><\/strong>, you can also gain access to their ready-made\u00a0\u201ccrypto bundles\u201d<\/a>.<\/strong> Bundles allow you to own an equally-weighted basket of the world\u2019s largest and, by default, most successful cryptocurrencies.<\/p>\nFor more information about crypto bundles<\/a>,<\/strong> or a direct way to invest in\u00a0Bitcoin<\/a>,<\/strong>\u00a0Ethereum<\/a><\/strong>, Pax Gold or USDC, visit\u00a0Revix<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"Calling the crypto market volatile would be quite the understatement, I mean, just look at the last couple of months!<\/p>\n","protected":false},"author":57,"featured_media":505628,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[14849],"class_list":["post-505610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-revix"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/505610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=505610"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/505610\/revisions"}],"predecessor-version":[{"id":505650,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/505610\/revisions\/505650"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/505628"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=505610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=505610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=505610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/a><\/p>\nVolatility was worth its weight in gold<\/strong><\/h3>\nAlthough this volatility may scare potential investors, many have been rewarded greatly for this risk. Bitcoin has seen a 115% increase year-over-year over the last 10 years (+211\u00a0000% total return), making it the best performing asset class in the last decade.<\/p>\n
But if volatility isn\u2019t your game, you can rejoice! Because there\u2019s also a stable way of growing your wealth using cryptocurrencies, namely stablecoins.<\/p>\n
Stable coins \u2013 Stable growth<\/strong><\/h3>\nStablecoins are a\u00a0type of cryptocurrency\u00a0<\/a><\/strong>programmed to track the value of another asset like government monies or gold.<\/p>\nFiat-collateralized stablecoins are cryptocurrencies backed 1-to-1 by an underlying government currency (like USD or EUR) stored in a traditional financial institution.<\/p>\n
Simply put, stablecoins are a digital version of fiat money and are pegged to that currency. For example, USD Coin (USDC) is a stablecoin that is pegged to the US Dollar, and as such, its value is $1.<\/p>\n
The South African saviour<\/strong><\/h3>\nSouth Africans have a unique need for US Dollar exposure, seeing that the South African Rand depreciates against the US Dollar roughly 5% a year\u2026 every year. Something that\u2019s been going on for a while now.<\/p>\n
This means that it\u2019s getting increasingly difficult for South Africans to accumulate international wealth while they save in a currency that is making them 5% poorer every year.<\/p>\n
This is why you may hear the word \u2018Rand Hedge\u2019 being thrown around your dinner table. In essence, this means that you get exposure to an asset that \u2018hedges out\u2019 this 5% leak.<\/p>\n
The graph below shows the effect of holding your wealth in Dollars vs Rands over the last 10 years.<\/p>\n
<\/a><\/p>\nIf you had taken your Rands, converted them to Dollars (10 years ago) and just kept them earning zero interest, they would be worth R2100 today, while your Rands would still be worth R1000.<\/p>\n
That means you\u2019ve lost quite a bit of buying power over the last 10 years if you chose to hold your wealth in Rands. In fact, you\u2019ve lost +7.6% year-on-year and 115% in total.<\/p>\n
Stablecoins can help stop this wealth erosion and make it work for you, not against you.<\/p>\n
By simply taking your hard-earned Rands and converting them into Dollars, you are increasing your wealth by +7.6% a year over the last 10 years.<\/p>\n
But it gets better!<\/p>\n
With the creation of stablecoins comes the creation of Savings accounts.<\/p>\n
Let\u2019s Save <\/strong><\/h3>\nWith stablecoins, comes the opportunity to create savings accounts or \u2018Defi Savings Vaults\u2019 as Revix<\/a><\/strong> likes to call them. These Savings Vaults offer\u00a0a fiat denominated saving account that earns an interest rate well above market (up to +7%).<\/p>\n\u201cStablecoins have allowed many South Africans to win two-fold. One, they get to hedge out their Rand risk and pick up an extra 5% year-on-year just by not holding a devaluing currency.<\/p>\n
Two, they get to put these US Dollars in a savings account that can earn between 2-7%, above and beyond the +5% saving they get from not holding Rands. That\u2019s a possible +13% net gain every year.<\/p>\n
That\u2019s a pretty big deal. Over 20 years, that 13% would translate to a +1 100% gain\u201d – Brett Hope Robertson, Investment analyst at investment platform\u00a0Revix<\/a><\/strong>.<\/p>\nWhere can I find these solutions?<\/strong><\/h3>\nInvestment platform Revix<\/a><\/strong>, understands how hard it is to save, and saving in Rands can be a disheartening task when it comes to holding a weakening currency.<\/p>\nAt Revix<\/a><\/strong>, you can gain access to USDC<\/strong> as a stablecoin<\/strong> solution.<\/p>\nUSD Coin (USDC) is a 1:1 representation of 1 US Dollar and you can always redeem 1 USDC for US$1.00, giving it a stable price.<\/p>\n
Take advantage of this launching, as Revix will be offering it as a fee-free product, which makes it better and accessible for you.<\/p>\n
Revix<\/a><\/strong> is also releasing a USDC Flexible DeFi Savings Vault.<\/p>\nThis is a US Dollars denominated saving account that offers an interest rate above market (Prior 12 months: 4.33%) with no lockup periods.<\/p>\n
So if you are looking for a Rand hedge and a stable way to grow their wealth, then this is the product for you.<\/p>\n
Through Revix<\/a><\/strong>, you can also gain access to their ready-made\u00a0\u201ccrypto bundles\u201d<\/a>.<\/strong> Bundles allow you to own an equally-weighted basket of the world\u2019s largest and, by default, most successful cryptocurrencies.<\/p>\nFor more information about crypto bundles<\/a>,<\/strong> or a direct way to invest in\u00a0Bitcoin<\/a>,<\/strong>\u00a0Ethereum<\/a><\/strong>, Pax Gold or USDC, visit\u00a0Revix<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"Calling the crypto market volatile would be quite the understatement, I mean, just look at the last couple of months!<\/p>\n","protected":false},"author":57,"featured_media":505628,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[14849],"class_list":["post-505610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-revix"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/505610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=505610"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/505610\/revisions"}],"predecessor-version":[{"id":505650,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/505610\/revisions\/505650"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/505628"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=505610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=505610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=505610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Stablecoins are a\u00a0type of cryptocurrency\u00a0<\/a><\/strong>programmed to track the value of another asset like government monies or gold.<\/p>\n Fiat-collateralized stablecoins are cryptocurrencies backed 1-to-1 by an underlying government currency (like USD or EUR) stored in a traditional financial institution.<\/p>\n Simply put, stablecoins are a digital version of fiat money and are pegged to that currency. For example, USD Coin (USDC) is a stablecoin that is pegged to the US Dollar, and as such, its value is $1.<\/p>\n South Africans have a unique need for US Dollar exposure, seeing that the South African Rand depreciates against the US Dollar roughly 5% a year\u2026 every year. Something that\u2019s been going on for a while now.<\/p>\n This means that it\u2019s getting increasingly difficult for South Africans to accumulate international wealth while they save in a currency that is making them 5% poorer every year.<\/p>\n This is why you may hear the word \u2018Rand Hedge\u2019 being thrown around your dinner table. In essence, this means that you get exposure to an asset that \u2018hedges out\u2019 this 5% leak.<\/p>\n The graph below shows the effect of holding your wealth in Dollars vs Rands over the last 10 years.<\/p>\n If you had taken your Rands, converted them to Dollars (10 years ago) and just kept them earning zero interest, they would be worth R2100 today, while your Rands would still be worth R1000.<\/p>\n That means you\u2019ve lost quite a bit of buying power over the last 10 years if you chose to hold your wealth in Rands. In fact, you\u2019ve lost +7.6% year-on-year and 115% in total.<\/p>\n Stablecoins can help stop this wealth erosion and make it work for you, not against you.<\/p>\n By simply taking your hard-earned Rands and converting them into Dollars, you are increasing your wealth by +7.6% a year over the last 10 years.<\/p>\n But it gets better!<\/p>\n With the creation of stablecoins comes the creation of Savings accounts.<\/p>\n With stablecoins, comes the opportunity to create savings accounts or \u2018Defi Savings Vaults\u2019 as Revix<\/a><\/strong> likes to call them. These Savings Vaults offer\u00a0a fiat denominated saving account that earns an interest rate well above market (up to +7%).<\/p>\n \u201cStablecoins have allowed many South Africans to win two-fold. One, they get to hedge out their Rand risk and pick up an extra 5% year-on-year just by not holding a devaluing currency.<\/p>\n Two, they get to put these US Dollars in a savings account that can earn between 2-7%, above and beyond the +5% saving they get from not holding Rands. That\u2019s a possible +13% net gain every year.<\/p>\n That\u2019s a pretty big deal. Over 20 years, that 13% would translate to a +1 100% gain\u201d – Brett Hope Robertson, Investment analyst at investment platform\u00a0Revix<\/a><\/strong>.<\/p>\n Investment platform Revix<\/a><\/strong>, understands how hard it is to save, and saving in Rands can be a disheartening task when it comes to holding a weakening currency.<\/p>\n At Revix<\/a><\/strong>, you can gain access to USDC<\/strong> as a stablecoin<\/strong> solution.<\/p>\n USD Coin (USDC) is a 1:1 representation of 1 US Dollar and you can always redeem 1 USDC for US$1.00, giving it a stable price.<\/p>\n Take advantage of this launching, as Revix will be offering it as a fee-free product, which makes it better and accessible for you.<\/p>\n Revix<\/a><\/strong> is also releasing a USDC Flexible DeFi Savings Vault.<\/p>\n This is a US Dollars denominated saving account that offers an interest rate above market (Prior 12 months: 4.33%) with no lockup periods.<\/p>\n So if you are looking for a Rand hedge and a stable way to grow their wealth, then this is the product for you.<\/p>\n Through Revix<\/a><\/strong>, you can also gain access to their ready-made\u00a0\u201ccrypto bundles\u201d<\/a>.<\/strong> Bundles allow you to own an equally-weighted basket of the world\u2019s largest and, by default, most successful cryptocurrencies.<\/p>\n For more information about crypto bundles<\/a>,<\/strong> or a direct way to invest in\u00a0Bitcoin<\/a>,<\/strong>\u00a0Ethereum<\/a><\/strong>, Pax Gold or USDC, visit\u00a0Revix<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":" Calling the crypto market volatile would be quite the understatement, I mean, just look at the last couple of months!<\/p>\n","protected":false},"author":57,"featured_media":505628,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[14849],"class_list":["post-505610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-revix"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/505610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=505610"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/505610\/revisions"}],"predecessor-version":[{"id":505650,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/505610\/revisions\/505650"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/505628"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=505610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=505610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=505610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The South African saviour<\/strong><\/h3>\n
<\/a><\/p>\nLet\u2019s Save <\/strong><\/h3>\n
Where can I find these solutions?<\/strong><\/h3>\n