Revix unpacks some of the facts – and myths – around the exciting new investment opportunity presented by cryptocurrency savings vaults.
1. USDC savings accounts offer better returns than my bank savings accounts – fact
First, we have to make the distinction between saving in South African rands and saving in US dollars. You cannot compare a South African savings account, which is rand denominated, to that of a dollar-denominated savings account. You must compare apples with apples.
The reason comes down to rand depreciation. This means that, while South African savings accounts might look like they are offering you a better interest rate, the currency you are earning in is losing value against the world’s reserve currency (the dollars). In fact, the rand has lost an average of 6.2%/year against the dollar for 50 years. Therefore, when you look at a dollar-denominated savings account, be sure to add this 6.2% to the existing rate — this will give you the rand savings rate comparison.
Now let’s tackle the question…
Currently, the average US savings account offers an interest rate of about 0.6%, while South African savings accounts offer around 3%. To compare these savings rates, we should add 6.2% to the dollar-denominated savings rate, thus accounting for the rand depreciation against the dollar and forming a rand-equivalent rate. Therefore, the current US savings rates are equivalent to a 6.8% interest rate in rand.
With crypto, South African’s can finally get a taste of this! Due to the rise of stablecoins, like USDC, South Africans can save in dollar-denominated savings accounts, called savings vaults.
Revix offers a USDC Savings Vault that allows you to earn around a 4% yield, with low minimum deposits and a sub-24 hour withdrawal time.
Important to note: This is a US dollar-denominated savings vault, and thus it is equivalent to a 10.2% (4%+6.2%) interest rate on South African rands. Compared to the current 3% offered from South African banks, this is a massive saving!
2. In these crazy times, crypto savings vaults, like the Revix USDC Savings Vault, offer protection against wealth erosion – fact
The Revix USDC Savings Vault is a dollar-denominated savings account that offers you around 4% yield on your USDC (10.2% rand-equivalent return). With the rand having lost over 6.2%/year for the past 50 years against the dollar, this vault can help you build your international wealth instead of having it eroding.
3. Saving in bitcoin is the same as saving in USDC – myth
While there are many bitcoin savings vaults, these do not offer the same risk characteristics as USDC savings vaults.
Savings vaults inherently pay you interest in the coin that you are saving in. This means that a bitcoin vault will pay your interest out in bitcoin, while the USDC vault will pay your interest in USDC.
Due to the volatility attached to bitcoin and the fact that your interest is paid out in that coin, the yield on your savings account and your capital can prove to be highly volatile. This is not the case with USDC. USDC is pegged to the value of US$1, and thus your yield and capital is far less prone to volatility swings.
4. The money I save in the Revix USDC Savings Vault is available to withdraw within 24 hours – fact
Revix’s USDC Savings Vault is a flexible vault and funds are not locked for extended periods of time. Funds will be available to use within 24 hours from when a withdraw has been requested.
And here is the biggest fact of all…
Revix’s $1-million USDC vault promotion
Revix is offering a promotion that seems too good to pass up on. With the release of its new USDC Savings Vault, Revix will go ahead and match your initial investment in the vault up to the value of $1-million in USDC.
This means that if you invest $1-million USDC into the vault, Revix will give you an additional $1-million in USDC, taking the total sum invested in your vault to $2-million.
This promotion will allow you to earn that extra yield you deserve.
This USDC “Match” promotion starts on Friday, 23 July 2021 and ends on the 31 2021 at 11.59pm.
Through Revix, you can also gain access to ready-made “Crypto Bundles”. These bundles allow you to own an equally weighted basket of the world’s largest and, by default, most successful cryptocurrencies.
Revix brings simplicity, trust and great customer service to investing. Its easy-to-use online platform allows anyone securely to own the world’s top investments in just a few clicks. Revix guides new clients through the sign-up process to their first deposit and investment. Once set up, most customers manage their own portfolio, but can access support from the Revix team at any time. For more information, please visit revix.com.
This article is intended for informational purposes only. The views expressed are not and should not be construed as investment advice or recommendations. You should not invest more than you can afford to lose, and before investing please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
- This promoted content was paid for by the party concerned