Saving bitcoins

[vaxo_nba]

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?

[1714544125]

1714544125

[Xester]

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?

Its sad to say but there are no bitcoin banks existing online. If you want to earn then just hold your bitcoins in your wallet and wait for an inflation. That way you will get more profit out of your investment. The only way to  save in banks is to convert your bitcoin into fiat currency and then deposit it on banks. But holding bitcoin is much profitable than savings on bank.

[ganjamancer]

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).

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.

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.

[topesis]

It will be difficult to come up with a correct answer, but for me I think the best thing is to link the amount of BTC in your account to Fiat and calculate the interest on a daily or weekly basis. The rise in BTC last year resulted in high default rate on BTCjam. Quality search need to be carried in the area to be successful

[coin-investor]

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?

Before you post this question,have you done a research if there is one bitcoin bank existing,in my knowledge there is none one in existent,and I doubt if there will be one coming in,although I love to see one,bit how will it works,considering that Bitcoin is decentralized and anonymous.

[helloeverybody]

The whole idea about bitcoins is to avoid using a bank. You shouldnt really want to take bitcoins that you own and then put them into some one elses trust. There arent any banks that do what i think your looking for but there have been companys that usually end up scamming you for your bitcoins. If you want to earn a percentage of the bitcoins you own then the current best way is just to buy and hold. You wont earn more btc this way but you more than likely will earn more fiat for every btc you own.

[deadsilent]

Sorry. Theres no bank which is actually accepting bitcoin. Banks are against bitcoin. And i guess theres no bank will accept bitcoin. You only have to get bitcoin wallet. This will act as your own bank. Hardware wallet, web wallet, and lots of kinds of wallet are available. But you can exchange bitcoin to cash and deposit it directly to your bank account. The rate is depending on exchange because every exchange have diiferent rate.

[ivanst776]

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?

If you mean for this time then there is no bank that would offer a service similar to this what you are asking.

A strong reason behind using bitcoin is to avoid banks and be your own bank by managing fully your own bitcoins.

[BTCLovingDude]

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

[20kevin20]

No bank accepts Bitcoin and it would be a very bad idea for them to do so. What is wrong here is that you become supervised by a bank, so the anonymus feature that Bitcoin offers will be over for you. This is probably what a few banks will start doing soon so that they can control Bitcoin too..

[ganjamancer]

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

Good points, BTCLovingDude.  I'm not sure I follow what you mean with regards to the USD price being less than another currency.  If you loan USD and are getting paid back in USD, I'm afraid I can't see where the "other currency" comes into play.  In my example, I meant a "pure" bitcoin loan where you loan X bitcoins and get Y coins back at regular intervals in interest, without translating to another currency.

As for part 2, guilty as charged.  That is a bad example indeed.  It was hyperbole to make my point.  If there are only 21 million bitcoins in existece, and we're not continually printing them up, we can't guarantee interest back on investments indefinitely.  Of course, short term investments should work just fine.

[Question123]

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?

Its sad to say but there are no bitcoin banks existing online. If you want to earn then just hold your bitcoins in your wallet and wait for an inflation. That way you will get more profit out of your investment. The only way to  save in banks is to convert your bitcoin into fiat currency and then deposit it on banks. But holding bitcoin is much profitable than savings on bank.

Agree , the only way to save in banks is to convert your bitcoin to real money and deposit to your passbook or ATM . I would like to you say hold your bitcoin you can get a lot of profit from it. Bitcoin gives you a good interest than bank. Think properly  don't think rushly .

[Raimonn]

Some users, like me, love bitcoin because they didn't need to trust a bank with its money, why anyone would want to deposit its bitcoins on a bank?

[mrcash02]

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?

The HaoBTC wallet allow you to receive an income if you let your Bitcoins stored there, like a saving account. It's a chinese wallet. I think it's legit and trusted, but the income is low. Don't know exactly how much it's possible to earn there, I think there isn't a fixed rate.

[mamaita]

meaning you'll save bitcoin you at a bank, but it is right you should change first into fiat because until now there has been no bank bitcoin, usually in the banking system, deposit rates were standard in general, if you want savings to large flowers are trying to keep on the deposit only, usually it was great.

[xuan87]

Since there is no bitcoin bank and I think bitcoin bank will never exist, it will be difficult to answer your question, but let assume that there is one bank that accepting bitcoin, I think the government will treat it like other currency, the deposit percentage will be lower and it will be hard to cash out

[Shiroslullaby]

Banks pay almost no interest on any kind of savings account.
You need to be doing some form of investment account that has risk of losing money before they give you more than one percent or something like that.

[angaper]

Actually that is one of great advantages of bitcoin: holding it is a better investment that the options offered by banks to invest your capital in ordinary financial instruments. If you have decided to invest in bitcoins, it seems a bit incongruent to think of investing them in ordinary banks.

[robelneo]

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?

Do we have one already? I would love to see a bitcoin bank and how it will differ from fiat banks and what are it's guidelines and how they are going to regulate users since Bitcoin is anonymous and decentralized,in my opinion we don't need it,Bitcoin alone is a portfolio and our wallet can act as a bank,Bitcoin was created this way.

[dothebeats]

Saving bitcoins in the bank? Lol. That wouldn't happen and no interest rates would be followed. Even if you followed the 1% interest rate of those absurd banks, you will see that it's better to just keep those bitcoin into your own wallet and let it grow its own value over time. You would save your time in terms of going over to the bank every now and then, also you would be able to check your bitcoins and know that you won't be robbed in any way.