Saving bitcoins

[cryp24x]

If I decided to save bitcoins in bank, how will deposit rate be changed compared to dollar or other currencies? Will it have much lower percent?

I don't think bitcoin would need a saving right now and even if fiat money and bitcoin are both currencies there are a lot of different things in both of them compare to bitcoin fiat money can be store in a solid vault and would wither when time passes but bitcoin don't have any that is why bitcoin doesn't need a bank to be stored and be save by it, I think the one that need saving are fiat currencies because of the value of bitcoin right now many people would want to but Bitcoin.

You can put the paper wallet or the private key backup/ hardware wallet to bank for more security.  Bank function is not limited in storing money.  They function as vault to important documents and expensive or rare items too.

[deisik]

"Saving bitcoin in banks"? Well, that doesn't sound right, compares to what I know about bitcoin. I haven't seen or heard about any banks that offiacially accept bitcoin in their bank system, so how would you do this when bitcoin is not banks' favour? You can save your bitcoin in all kinds of wallet, you know

It doesn't sound good because it is against the core values of bitcoin. Bitcoin is a decentralised crypto currency which should remain free from any third party interference. Sender and receiver should be whole and sole authorities to involve in the transaction. I am not against bank or some institutions wishing to provide services against deposited funds but it should not be the main wallet to hold bitcoins

I tend to disagree with your position

In this case (i.e. in the case of Bitcoin banks) there is no third party whatsoever. When you buy things or pay for services with bitcoins, would you consider the seller as a third party? Obviously, not. But it is basically the same with a Bitcoin bank. You don't use it to transfer the money (since you can transfer bitcoin directly), you use the bank as an end-point of sorts. It is not an intermediary. You offer them bitcoins while they offer you percentage on your coins, as simple as it gets. Where is a third party here?

[soul-impact]

If I decided to save bitcoins in bank, how will deposit rate be changed compared to dollar or other currencies? Will it have much lower percent?

I don't think bitcoin would need a saving right now and even if fiat money and bitcoin are both currencies there are a lot of different things in both of them compare to bitcoin fiat money can be store in a solid vault and would wither when time passes but bitcoin don't have any that is why bitcoin doesn't need a bank to be stored and be save by it, I think the one that need saving are fiat currencies because of the value of bitcoin right now many people would want to but Bitcoin.

You can put the paper wallet or the private key backup/ hardware wallet to bank for more security.  Bank function is not limited in storing money.  They function as vault to important documents and expensive or rare items too.

wtf?? The bank? Are you out of your mind? Bitcoin is created for the decentralized system and now you want to put your money into some centralized such as bank. Damn it. You are crazy dude.

[Dudeperfect]

"Saving bitcoin in banks"? Well, that doesn't sound right, compares to what I know about bitcoin. I haven't seen or heard about any banks that offiacially accept bitcoin in their bank system, so how would you do this when bitcoin is not banks' favour? You can save your bitcoin in all kinds of wallet, you know

It doesn't sound good because it is against the core values of bitcoin. Bitcoin is a decentralised crypto currency which should remain free from any third party interference. Sender and receiver should be whole and sole authorities to involve in the transaction. I am not against bank or some institutions wishing to provide services against deposited funds but it should not be the main wallet to hold bitcoins

I tend to disagree with your position

In this case (i.e. in the case of Bitcoin banks) there is no third party whatsoever. When you buy things or pay for services with bitcoins, would you consider the seller as a third party? Obviously, not. But it is basically the same with a Bitcoin bank. You don't use it to transfer the money (since you can transfer bitcoin directly), you use the bank as an end-point of sorts. It is not an intermediary. You offer them bitcoins while they offer you percentage on your coins, as simple as it gets. Where is a third party here?

I respect everyone's opinion. The bank would not keep our funds with them (nothing wrong here) as they are supposed to pay interest to the fund depositors.

They will lend our funds to someone else (currently web wallet service providers are not doing this) so my funds will be in the hands of someone else so instead of trusting some single entity (like blockchain.info) I have to trust multiple people (borrowers of banks whom I don't even know). Bank would be third party in this case.

[Ashong Salonga]

That's a good question.  Due to the design of bitcoin, it is a bit difficult to "loan" them (remember that banking is effectively a loan where the bank pays you interest).

Now, that's more on the theoretical side of things.  In practice, a major problem with loans in Bitcoin are the volatile price.  If the price rises suddenly, it could become more difficult to pay back interest; or alternatively if the price takes a heavy drop, the investor may lose money as what he is paid is less valuable now than it was at initial investment.

why is it difficult? it is the same as lending money. when someone files for a loan, bank reviews their application takes a collateral and gives the loan and then takes it back on intervals.
and price is no matter, because they lend bitcoin and receive bitcoin. and this can only happen in the future when mass adoption happened and price is already high and stable.

it is like lending USD and then USD price going down versus another currency!! that has no effect on how lending goes.

Bitcoins are not fiat, and therefore, can not be continuously printed.  Because of this, no one can guarantee to indefinitely keep paying out interest on loaned coins.  A horribly exaggerated example, just to make a point, is that if I somehow had 20,000,000 bitcoins in a bank, they could never pay me more than 1,000,000 total in interest just because of the limited supply.

bad example. if someone has 20 mil coins it means bitcoin is dead since 1 person controls all the supply and nobody takes a loan

I think it's not a good idea because there's no bank that can handle a lot of bitcoin,because if you have more bitcoin there are also more  interest so that no banks will approved you to save your bitcoin in there bank.Bitcoins have different value so that when you save your money in the bank they can't handle it because the interest of bitcoin will increase.

[Shenzou]

That's a good question.  Due to the design of bitcoin, it is a bit difficult to "loan" them (remember that banking is effectively a loan where the bank pays you interest).

Now, that's more on the theoretical side of things.  In practice, a major problem with loans in Bitcoin are the volatile price.  If the price rises suddenly, it could become more difficult to pay back interest; or alternatively if the price takes a heavy drop, the investor may lose money as what he is paid is less valuable now than it was at initial investment.

why is it difficult? it is the same as lending money. when someone files for a loan, bank reviews their application takes a collateral and gives the loan and then takes it back on intervals.
and price is no matter, because they lend bitcoin and receive bitcoin. and this can only happen in the future when mass adoption happened and price is already high and stable.

it is like lending USD and then USD price going down versus another currency!! that has no effect on how lending goes.

Bitcoins are not fiat, and therefore, can not be continuously printed.  Because of this, no one can guarantee to indefinitely keep paying out interest on loaned coins.  A horribly exaggerated example, just to make a point, is that if I somehow had 20,000,000 bitcoins in a bank, they could never pay me more than 1,000,000 total in interest just because of the limited supply.

bad example. if someone has 20 mil coins it means bitcoin is dead since 1 person controls all the supply and nobody takes a loan

I think it's not a good idea because there's no bank that can handle a lot of bitcoin,because if you have more bitcoin there are also more  interest so that no banks will approved you to save your bitcoin in there bank.Bitcoins have different value so that when you save your money in the bank they can't handle it because the interest of bitcoin will increase.

A part from that bitcoin has an unstable value which means that as it could go up it could go down, and banks will not risk losing millions of dollars if the bitcoin fails and gows down.

[d.kevin29]

If I decided to save bitcoins in bank, how will deposit rate be changed compared to dollar or other currencies? Will it have much lower percent?

I don't think bitcoin would need a saving right now and even if fiat money and bitcoin are both currencies there are a lot of different things in both of them compare to bitcoin fiat money can be store in a solid vault and would wither when time passes but bitcoin don't have any that is why bitcoin doesn't need a bank to be stored and be save by it, I think the one that need saving are fiat currencies because of the value of bitcoin right now many people would want to but Bitcoin.

You can put the paper wallet or the private key backup/ hardware wallet to bank for more security.  Bank function is not limited in storing money.  They function as vault to important documents and expensive or rare items too.

In case a bank fails nobody will ensure you that your money or documents will be kept safe inside the safes. People here are looking for ways to get rid of them, not buying a currency that isn't controlled by Governments and give it to them basically as a gift in case they fail. I'm looking for ways to stay away from them, and Bitcoin is like my refuge. I see no point in printing a paper wallet to store it in a bank unless you're a trader that doesn't want to have the currency for daily usage.

[deisik]

"Saving bitcoin in banks"? Well, that doesn't sound right, compares to what I know about bitcoin. I haven't seen or heard about any banks that offiacially accept bitcoin in their bank system, so how would you do this when bitcoin is not banks' favour? You can save your bitcoin in all kinds of wallet, you know

It doesn't sound good because it is against the core values of bitcoin. Bitcoin is a decentralised crypto currency which should remain free from any third party interference. Sender and receiver should be whole and sole authorities to involve in the transaction. I am not against bank or some institutions wishing to provide services against deposited funds but it should not be the main wallet to hold bitcoins

I tend to disagree with your position

In this case (i.e. in the case of Bitcoin banks) there is no third party whatsoever. When you buy things or pay for services with bitcoins, would you consider the seller as a third party? Obviously, not. But it is basically the same with a Bitcoin bank. You don't use it to transfer the money (since you can transfer bitcoin directly), you use the bank as an end-point of sorts. It is not an intermediary. You offer them bitcoins while they offer you percentage on your coins, as simple as it gets. Where is a third party here?

I respect everyone's opinion. The bank would not keep our funds with them (nothing wrong here) as they are supposed to pay interest to the fund depositors.

They will lend our funds to someone else (currently web wallet service providers are not doing this) so my funds will be in the hands of someone else so instead of trusting some single entity (like blockchain.info) I have to trust multiple people (borrowers of banks whom I don't even know). Bank would be third party in this case

As to me, this doesn't change anything in the end

They wouldn't be a third party in respect to you by any definition. Basically, they are one part or side (aka counterparty) in the contract between you, on the one side, and them, on the other. There is no third party in this case (apart from the Bitcoin blockchain itself). It doesn't matter what they do with your bitcoins later (if they do anything at all) and to whom they lend your money (if ever), this is irrelevant and inconsequential to the issue in question. Here's an example to better understand the matter. When you open a deposit account in a regular bank, the bank will obviously be your counterparty in the deposit agreement between you and them (I guess that should go without saying), but government which prints the money which you put in the bank will be a third party in this case since they can devalue the money at any moment (hence comes the idea of a third party risk)

[Mario274]

That's a good question.  Due to the design of bitcoin, it is a bit difficult to "loan" them (remember that banking is effectively a loan where the bank pays you interest).

Now, that's more on the theoretical side of things.  In practice, a major problem with loans in Bitcoin are the volatile price.  If the price rises suddenly, it could become more difficult to pay back interest; or alternatively if the price takes a heavy drop, the investor may lose money as what he is paid is less valuable now than it was at initial investment.

why is it difficult? it is the same as lending money. when someone files for a loan, bank reviews their application takes a collateral and gives the loan and then takes it back on intervals.
and price is no matter, because they lend bitcoin and receive bitcoin. and this can only happen in the future when mass adoption happened and price is already high and stable.

it is like lending USD and then USD price going down versus another currency!! that has no effect on how lending goes.

Bitcoins are not fiat, and therefore, can not be continuously printed.  Because of this, no one can guarantee to indefinitely keep paying out interest on loaned coins.  A horribly exaggerated example, just to make a point, is that if I somehow had 20,000,000 bitcoins in a bank, they could never pay me more than 1,000,000 total in interest just because of the limited supply.

bad example. if someone has 20 mil coins it means bitcoin is dead since 1 person controls all the supply and nobody takes a loan

I think it's not a good idea because there's no bank that can handle a lot of bitcoin,because if you have more bitcoin there are also more  interest so that no banks will approved you to save your bitcoin in there bank.Bitcoins have different value so that when you save your money in the bank they can't handle it because the interest of bitcoin will increase.

A part from that bitcoin has an unstable value which means that as it could go up it could go down, and banks will not risk losing millions of dollars if the bitcoin fails and gows down.

Yes, banks can not accept such a risky tool as bitcoin. His position is too unstable. And despite the price increase now there are no guarantees that this will always continue

[jak3]

i do not honestly think there is any bank in the world till now which really accepts bitcoin payments anyway if they do accept bitcoin someday then yes their payouts will be very very low, something like 5000,20000  satoshi per month or so, its just a idea no offence

[Adelajda]

You can put the paper wallet or the private key backup/ hardware wallet to bank for more security.  Bank function is not limited in storing money.  They function as vault to important documents and expensive or rare items too.

wtf?? The bank? Are you out of your mind? Bitcoin is created for the decentralized system and now you want to put your money into some centralized such as bank. Damn it. You are crazy dude.

Saving your private keys and hardware wallet in your bank vault is not a bad idea as it is more secure and safe than keeping at home ,so never call these ideas crazy as it is a good way to safeguard your money.

[JanpriX]

If I decided to save bitcoins in bank, how will deposit rate be changed compared to dollar or other currencies? Will it have much lower percent?

I don't know if you are truly serious about your question here. Bitcoin's core value is to have a decentralized currency and become anonymous while managing the said currency. You would ignore its core value if you'll gonna save your BTC in a bank. Also, I don't know if there is any bank out there that accepts Bitcoin for it to have a deposit rate like fiat currencies.

Storing your BTC in a safe, offline wallet should be enough and by doing this, I'm sure that you'll have profit from it if you'll gonna save it for many years. Bitcoin is one of the top-performing currencies for the past 3-4 years.

[Pettuh4]

If I decided to save bitcoins in bank, how will deposit rate be changed compared to dollar or other currencies? Will it have much lower percent?

That is basically for the banks to define according to their terms and conditions. I cannot predict what might ensue from my current position but I can only speculate that the rate might be less or high compared to fiat currencies.

[Stedsm]

If I decided to save bitcoins in bank, how will deposit rate be changed compared to dollar or other currencies? Will it have much lower percent?

Seriously man, banks? Bitcoin had been created with a purpose of making an entity a bank for themselves by having a complete hold of their finances in their own hands. And when it comes to deposit rate, why are you interested in giving your coins to a bank when you can earn some extreme interests with the daily price fluctuations that take place in the markets?

[avikz]

Your question is incorrect because Bitcoin bank doesn’t exist in reality. So you will have to save your bitcoin in your own wallet only. You won’t expect any interest to be paid by someone. However, the price dynamics of bitcoin will reward you suitably even if there is no bank and if you are willing to hold your bitcoin for long time.

Just to give you a real life example, you can consider my case. I started earning bitcoin in 2015 when the price was between $220 to $260. So if I had one bitcoin that time, I would have made pure profit of $1000 just by holding that bitcoin for 2 years. No bank will give you that much return in the form of interest for sure. 

So it is better to stop searching for a bitcoin bank and start saving up! Cheers!

[Dudeperfect]

"Saving bitcoin in banks"? Well, that doesn't sound right, compares to what I know about bitcoin. I haven't seen or heard about any banks that offiacially accept bitcoin in their bank system, so how would you do this when bitcoin is not banks' favour? You can save your bitcoin in all kinds of wallet, you know

It doesn't sound good because it is against the core values of bitcoin. Bitcoin is a decentralised crypto currency which should remain free from any third party interference. Sender and receiver should be whole and sole authorities to involve in the transaction. I am not against bank or some institutions wishing to provide services against deposited funds but it should not be the main wallet to hold bitcoins

I tend to disagree with your position

In this case (i.e. in the case of Bitcoin banks) there is no third party whatsoever. When you buy things or pay for services with bitcoins, would you consider the seller as a third party? Obviously, not. But it is basically the same with a Bitcoin bank. You don't use it to transfer the money (since you can transfer bitcoin directly), you use the bank as an end-point of sorts. It is not an intermediary. You offer them bitcoins while they offer you percentage on your coins, as simple as it gets. Where is a third party here?

I respect everyone's opinion. The bank would not keep our funds with them (nothing wrong here) as they are supposed to pay interest to the fund depositors.

They will lend our funds to someone else (currently web wallet service providers are not doing this) so my funds will be in the hands of someone else so instead of trusting some single entity (like blockchain.info) I have to trust multiple people (borrowers of banks whom I don't even know). Bank would be third party in this case

As to me, this doesn't change anything in the end

They wouldn't be a third party in respect to you by any definition. Basically, they are one part or side (aka counterparty) in the contract between you, on the one side, and them, on the other. There is no third party in this case (apart from the Bitcoin blockchain itself). It doesn't matter what they do with your bitcoins later (if they do anything at all) and to whom they lend your money (if ever), this is irrelevant and inconsequential to the issue in question. Here's an example to better understand the matter. When you open a deposit account in a regular bank, the bank will obviously be your counterparty in the deposit agreement between you and them (I guess that should go without saying), but government which prints the money which you put in the bank will be a third party in this case since they can devalue the money at any moment (hence comes the idea of a third party risk)

Exactly,

Government = Me = Banks
Me = Banks = Bank's Borrowers


* It is a chain system whereas when I deposit money with web wallet service provider, it will be

Me (Depositor) = Web Wallet Service Provider (Holder) = Me (Controller)


* Whereas in Bank's Case,

Me (Depositor) = Banks (Holder & Controller) = Bank's Borrowers (Holder)


In first the case wallet service provider won't have any additional rights to control the funds (lend it to others) whereas, in bank's case, we are authorising banks to bring additional contractees in the contract.

[batang_bitcoin]

If I decided to save bitcoins in bank, how will deposit rate be changed compared to dollar or other currencies? Will it have much lower percent?

That is basically for the banks to define according to their terms and conditions. I cannot predict what might ensue from my current position but I can only speculate that the rate might be less or high compared to fiat currencies.

Yes the bank is the one to decide those things but as of now, there is no bank that is willing or is accepting bitcoins for saving. Since most of the central banks are keep telling that bitcoin is a currency that shouldn't be get into it. Better to save your bitcoins right to your hardware wallet or online wallet and you are fine.

[machinek20]

If that case ever happened then it is depend on the bank, because each bank has it's own policy, and i think it will be hard for bank to determine the deposit rate, but I assumed it will have a lower percentage than fiat, because the government and bank will be more focus to asked people to save their money in fiat

[deppil]

If I decided to save bitcoins in bank, how will deposit rate be changed compared to dollar or other currencies? Will it have much lower percent?

That is basically for the banks to define according to their terms and conditions. I cannot predict what might ensue from my current position but I can only speculate that the rate might be less or high compared to fiat currencies.

I think it depends on the rules of the bank due to the fact there is no bank in the world that accept deposit bitcoin? so of course there will not be people who know about these regulations

[axorb]

If I decided to save bitcoins in bank, how will deposit rate be changed compared to dollar or other currencies? Will it have much lower percent?

That is basically for the banks to define according to their terms and conditions. I cannot predict what might ensue from my current position but I can only speculate that the rate might be less or high compared to fiat currencies.

I think it depends on the rules of the bank due to the fact there is no bank in the world that accept deposit bitcoin? so of course there will not be people who know about these regulations

I don't think that banks will ever start accepting bitcoins in future as its an threat to them and its an tough competition to the banking system and they might start adopting blockchain technology in future but they will never support bitcoins for sure and when it comes to saving bitcoins then its better to save them in bitcoin wallet instead of saving in banks as you will get better results by selling them when price goes higher in future.