Brazil: Here's why Bitcoin has become indispensable in the face of the real's collapse!

In Brazil, which faces a significant monetary devaluation of 13 % per year, protecting one’s assets has become a major challenge for investors. As the local currency, the Brazilian real, gradually collapses, the quest for effective solutions to preserve purchasing power intensifies. In this context, Bitcoin, often perceived as a risky asset, proves to be a compelling alternative.

Bitcoin, a bulwark against monetary depreciation

With an average loss of value of 13 % per year, Brazilians see their purchasing power inexorably erode. In this context, assets that surpass this rate of devaluation are rare. Over the past ten years, Bitcoin has posted an average annual return of 184.96 %, despite periods of significant decline, such as in 2014 (-58.6 %) and 2018 (-72.56 %). These figures, though volatile, show that in the long term, Bitcoin has significantly outperformed other assets.

By comparison, gold, often considered a safe haven against inflation, recorded only an average return of 5.65 % per year over the same period. The S&P 500, with a return of 10.66 %, and the Nasdaq, at 15.28 %, although appreciable, do not compensate for the annual loss suffered by the Brazilian real. This reality places Bitcoin at the forefront of investment options capable of maintaining or even increasing the wealth of Brazilians in the face of monetary devaluation.

The Nasdaq and diversification as an alternative

While Bitcoin proves to be a powerful option against the depreciation of the Brazilian real, it is not the only alternative for investors. Indeed, the Nasdaq is one of the few other assets capable of effectively protecting Brazilians against the loss of value of their currency. With an average annual return of 15.28 %, the American technology index stands out for its relative stability and growth potential. It represents a viable option for investors.

However, the importance of diversification should not be neglected. While Bitcoin and the Nasdaq show better performance, it is essential not to put all your eggs in one basket. A balanced strategy that integrates multiple asset classes can offer good protection against economic uncertainty. In the near future, the question for Brazilian investors will be finding the right balance between high-yield assets like Bitcoin and other more traditional instruments like the Nasdaq or gold.

Monetary depreciation in Brazil is pushing investors to seek solutions off the beaten path. Bitcoin, despite its risks, has established itself as a bulwark against the erosion of the real, but it is not alone. The Nasdaq also offers a stable alternative.