Cash Savings

This model compares Bitcoin’s potential growth against traditional banking products like high-yield savings, CDs, or money market accounts, which typically offer low yet stable and oftentimes guaranteed returns. The goal here is to demonstrate the impacts inflation can have on our cash positions, even when we are earning a return from our bank or investment partner on these products. This also shows how the compounding returns from something like Bitcoin can add up over time to dramatically increase your average annual APY, whereas traditional yields are paid against the same principal balance each year.

In This Model: Input the total cash holdings value, the annual percentage yield (APY) you will earn on your cash, an estimated annual number for inflation %, and the total number of years you would be using this strategy, then drag the Bitcoin CAGR bar to your desired metric. The results will be the Tradfi scenario showing your exact inputs over the course of the term specified, compared to a similar scenario where you invested that cash into Bitcoin appreciating at the specified CAGR instead.