Everybody has that one friend who claims to know exactly what’s going on in the world of cryptocurrencies.

Great, but sometimes it’s important to cut through the noise and separate fact from fiction, in order to better understand the cryptocurrency landscape.

Last week, we focused on the buzz around USDC cryptocurrency, and why it was gaining so much traction online.

It’s worth revisiting a few of the key points, to separate fact from fiction, before we move onto the increasing popularity of crypto savings vaults.

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 US Dollar-denominated savings account. You have to compare apples with apples.

The reason comes down to something called ‘Rand depreciation’. This basically means that, while South African savings accounts might look like they are offering you a better interest rate, the currency you are earning it in is losing value against the world reserve currency (US Dollars). In fact, the Rand has lost around -6.2% per year against the Dollar over the last 50 years. Therefore, when you look at a US 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 around +0.6% interest rate, while South African savings accounts offer around 3%.

Now, to compare these savings rates, we should add +6.2% to the US Dollar-denominated savings rate, thus accounting for the Rand’s 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 South African Rands.

With crypto, South African’s can finally get a taste of this.

Due to the rise of stablecoins, like USDC, South Africans can now save in US 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.

NB – 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.

In these crazy times, Crypto Savings Vaults, like the Revix USDC Vault, offer me protection against wealth erosion

Fact

The Revix USDC Savings Vault is a US 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% per year in the last 50 years against the Dollar, this Vault can help you build your international wealth instead of having it eroding. 

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, which is pegged to the value of $1, and thus your yield and capital is far less prone to volatility swings.

The money I save in the Revix USDC Vault is available to withdraw within 24 hours

Fact 

Revix’s USDC Savings Vault is a flexible Vault and thus 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.

Another fact – Revix’s $1 000 000 USDC Vault promotion is up and running.

Revix is offering a promotion that seems too good to pass on.

With the release of their new USDC Savings Vault, Revix will go ahead and match your initial investment in the Vault up to the value of $1 000 000 USDC.

This means that if you invest $1 000 000 USDC into the Vault, Revix will give you an additional $1 000 000 USDC, taking the total sum invested in your Vault to $2 000 000 USDC.

This promotion will allow you to earn that extra yield you deserve.

This USDC “Match” promotion starts today (Friday, July 23, 2021) and ends on August 31 at 11:59PM.

Through Revix, you can also gain access to their 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. 

For more information about Revix’s USDC Savings Vault, Crypto Bundles, or a direct way to invest in Bitcoin, Ethereum, Pax Gold, or USDC, visit Revix.

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.