The TIP yield is a real yield. It's indexed to CPI-U, same as Series I bonds. (TIPs adjust monthly; Series I bonds semiannually.)
> would convert a some portion of my savings into stablecoins
This is probably the worst choice one can make. It's accepting a 0% nominal yield against an unregulated counterparty. A Bank of America savings account is literally a better choice.
Unfortunately, not that high:
You may be able to cash in qualified U.S. savings bonds without having to include in your income some or all of the interest earned on the bonds if you meet the following conditions.
- You pay qualified education expenses for yourself, your spouse, or a dependent.
- Your MAGI is less than $98,200 ($154,800 if married filing jointly).
- Your filing status isn't married filing separately.
> This is probably the worst choice one can make. It's accepting a 0% nominal yield against an unregulated counterparty. A Bank of America savings account is literally a better choice.
you clipped out half the sentence:
> I would convert a some portion of my savings into stablecoins and spread them out into some interest accounts to try to minimize counterparty risk.
interest accounts. i.e. non-0% nominal yields.
i'm not taking any stance on the risk v yield profile. i was just bothered by JumpCrisscross's mischaracterization of the earlier comment & wanted to correct that.
With demurrage currencies, everything works like TIPS. Yields may be negative but they are free from inflation and deflation.
It's kind of weird that people are choosing the money illusion over a negative yield/interest rate. I would rather have no inflation and see that the yield is negative than unpredictable inflation where the yield could be absolutely anything and I simply won't know.
No systemic measure is free from inflation or deflation in a dynamic market.
Prices move, sometimes in a correlated fashion, and credit waxes and wanes organically. Long-run inflation may be theoretically zero in some systems (constant money supply and magically constant velocity), but in reality, we have never observed this. (Even under commodity money systems with relatively constant money supply.)
Not at all true of historical demurrage currencies, with are subject to inflation/deflation as normal but also have reduced nominal value over holding time.
ISTR the term has been resurrected for crypto products, but I can't find any details of how any crypto demurrage currencies work that would confirm or deny that they are somehow insulated from inflation/deflation and only change buying power by the demurrage charge, though I can't see it being likely to work in practice.
In theory, you could have what is basically a “stablecoin” managed against a price index like the CPI-U instead of an actual fiat currency and then add a demurrage charge on top of that (which could provide stabilization resources, so it's not completely irrelevant to function).