When personal finance is mentioned, we think of savings accounts, ETFs, and a variety of traditional paths to sensible and steady wealth accrual.
As we will see, however, expectations do not match reality. More promising are the innovations being made by HODLCommunity, which offers a tangible way to guarantee gains over time with the power of blockchain.
Opening a savings account is perhaps the worst way to grow your nest egg. With a national average interest rate of 0.05 % APY, the rate of return is dwarfed by inflation, and rather than increasing your wealth, diminishes it over time.
Many recognize the issues with savings accounts, and so they turn to (ostensibly) superior investments. One of these is the Exchange Traded-Fund or ETF.
An ETF may be appealing at first. Instead of risking money on a single asset, an ETF groups assets into one fund and, by doing so, provides a share of an entire subset of the market.
Indeed, certain aspects of the ETF shine with splendor. They provide lower fees than mutual funds (roughly ⅓). Moreover, unlike mutual funds, ETFs offer tax advantages.
Their biggest pull is diversification, the mantra of the financially-savvy the world over. Without an ETF, it would be exorbitantly pricey to attain a share of the many assets within its purview. Additionally, ETFs offer transparency in their valuations.
But ETFs are a double-edged sword, and they are not without significant drawbacks. One major problem is low-volume. Unlike traditional stocks, they can be difficult to exchange.
This is not the only lamentable feature of ETFs; there is also the very pervasive risk that they will close. This may happen when the fund has not acquired enough assets to cover costs. This possibility can spell a possible loss for investors forced to sell sooner than they wished. As an additional vexation, there is the tax burden that comes with having to reinvest your money.
Traditional often means less than optimal. We can now take a long-view of what new advances have brought to the table. Fortunately, HODLCommunity is leveraging blockchain technology to guarantee steady but significant gains that are impervious to inflation and sudden closures.
HODLCommunity is essentially an ecosystem for unique cryptocurrency assets unhindered by price volatility. The project utilizes advanced algorithmic principles, grounded in a fundamental understanding of finance, in order to ensure a faultless upward movement in value.
HODLC, its native token, has a permanent maximum supply of only 40 million, guaranteeing that as demand increases, the price will too.
With this low supply coupled with algorithmic instruments like Dynamic Value Increase (elevating the value of the asset per transaction) and Temporal Value Increase (pushing the value upwards on a daily basis), HODLCommunity resolves the issue of how to actually accrue wealth through personal finance.