Why Traditional Finance Fails to Protect Capital: Key Insights From the EMCD Webinar

An EMCD-sponsored webinar recently brought together industry experts to discuss inflation, the limitations of traditional finance, and long-term strategies within the crypto ecosystem, while also introducing participants to EMCD’s Coinhold solution. The discussion centered on how individuals can better protect and grow capital in an increasingly unstable macroeconomic environment.

The webinar opened with an overview of global inflation trends. Jakub Dziadkowiec highlighted that inflation has exceeded 10% in recent years, eroding purchasing power at a steady pace. He explained that holding cash is no longer a neutral decision, as savings lose value month after month in real terms. This reality has pushed many investors to question whether traditional financial tools are still fit for purpose.

Jan Warmus expanded on this by explaining how bank deposits operate. Banks leverage customer funds to generate profits, while interest rates offered to depositors often lag far behind inflation. As a result, savers typically experience negative real returns. He also addressed foreign currency accounts, noting that exchange rate volatility and banking fees further undermine their effectiveness. According to Jan, the traditional financial system was never designed to prioritize individual wealth preservation, but rather institutional efficiency.

The conversation then shifted to cryptocurrencies and long-term investment strategies. Jakub asked what realistic alternatives exist outside traditional finance. Jan pointed to long-term Bitcoin accumulation and mining as infrastructure-based strategies that align with crypto’s foundational principles. Dominic emphasized the importance of a mindset shift, explaining that Web3 and DeFi favor compound-based models where understanding infrastructure matters more than short-term speculation. He noted that informed participation often delivers better outcomes than frequent trading.

When discussing investor preparation, Jan recommended consistency and simplicity, highlighting dollar-cost averaging as a way to reduce emotional decision-making. Dominic added that strong analysis leads to calmer, more disciplined asset management. The discussion later turned to EMCD’s Coinhold, which Jan described as a long-term, user-friendly product with a low entry threshold. He explained that yields are generated through EMCD’s ecosystem, including mining operations and professional lending, aiming to provide stable and predictable returns. The webinar concluded with an interactive AMA session, addressing key questions from participants.