Is Your Money Safer In Crypto than at the Bank?

[boraf]

Actually I don't believe in total safety neither in bank nor in crypto. So to my point of view, it is better to diversify your savings and investments both to fiat money and cryptocurrencies, using good protection system on your crypto coins.

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[xanaxxx]

Tim Draper: More Secure in Bitcoin Than the Money Sitting in Wells Fargo

Venture capitalist Tim Draper is bullish on Bitcoin and believes it will reach $250,000 in the next four years.

During a debate hosted by Intelligence Squared and the Adam Smith Society, Tim Draper was asked how Bitcoin compared with his previous tech investments in Hotmail, Skype, and Tesla. He replied bullishly, saying, “Bitcoin will be bigger than all three combined.” However, Draper didn’t leave it at that — he thinks it will be bigger than the iron age, the Renaissance, and the internet and says that the nascent technology will affect the entire world in a faster and more prevalent way than ever imagined.

The Debate: “Bitcoin is more than a bubble and here to stay.”
Backed up by Patrick Byrne (CEO of overstock), Draper took on Financial Times journalist, Gillian Tett, and Professor of Law, Eric Posner, both of whom argued that Bitcoin is indeed a bubble and strongly contested Draper’s claims. Posner and Tett called into question the “strengths” of Bitcoin, arguing that they could be regarded as weaknesses. Posner suggested that the pseudonymization of identity enabled by the technology makes Bitcoin transactions the perfect vehicle for sophisticated criminal transactions. Tett focused on the risk involved with trusting computers with finance as they can be hacked, are prone to faults, and that Bitcoin is a “terrible store of value.”

These arguments won’t be anything new to anyone who has studied the space, and the rebuttals of Draper and Byrne won’t come as a surprise either. The pair acknowledged that Bitcoin was imperfect and drew attention to the fact the technology was designed to be open source so that unforeseen problems can be managed by the community. Byrne also pointed out that although Bitcoin has been “hacked at” more than anything in history, but unlike banks, it has yet to be defeated.

Draper was more brazen in his responses and implored the crowd to use fiat if they were looking to facilitate their own criminal activity as many Bitcoin criminals get caught. The venture capitalist responded to Tett’s admission that she invests in several different fiat currencies by saying, “I’m so much more secure in my Bitcoin than I am in the money that’s sitting there in Wells Fargo.”

Who is right?
The short answer is it’s far too early to tell, but it is good to see the subject being discussed in this manner. Before the debate, Gillian Tett remarked that if both sides of an argument aren’t heard in the same room, on the same day, then the conversations can “go past one another.” It’s probably safe to say she’s right here because, although there is no shortage of media on either side of the argument, real debate on the subject can be difficult to find.

If crypto is going to head down the road Draper expects, its advocates need to be able to argue their case outside of the crypto community, and debate should be welcome as it not only gives both sides the ability to speak but also the ability to listen.

Draper’s comments are to be expected
As crypto enthusiasts, it’s easy to agree when figures like Draper sing the praises of Bitcoin, but we shouldn’t let confirmation bias get in the way of the issues. Draper is a successful investor, and he hasn’t arrived there without making mistakes. He could be wholly right, wrong, or somewhere in between — the latter is most likely. Draper allegedly owns 30,000 BTC, so he has a vested interest in Bitcoin’s success. That does not mean he is wrong, but it does mean his comments should be taken with a pinch of salt. Well-reasoned arguments are far more convincing than hype and chest beating because they allow people to make up their own minds.

The emergence of DLT might eclipse the impact of other innovations, but for now, the emphasis is not on critics to prove the crypto community wrong. It’s up to those who champion DLT to convince the world they’re right.

Originally published at cryptodisrupt.com

there are the risks related to holding bitcoin and there are the risks related to holding the fiat in banks. If bitcoin loses value, then your stake won't help you. But if your bank won't let you withdraw your funds or your fiat currency denominates, it's the same thing

[Manc89]

In my own opinion is safer in cryptocurrency in terms of money than at the bank because the cryptocurrency industry is the safest that I know and more appropriate in this topic because they are best.

You have no proof with this opinion. I know you can have own opinion but at least you must be honest. I know all people here is great crypto supporters but not lead us can lie. Put money in cryptocurrency is much more risky compare with bank. In the bank is much more safer but have not chance to get profit like in crypto.

[maman567]

By keeping money on the bank excatly will be the same like before we save at first time, but another thing will be happen if we are saving our money by cryptocurrenncy, more increase of our money. Maybe we can take double or triple about how much money have we save. Like we bought bitcoin at $300 last two years and we sell right now, you can imagine how much increase your money by saving on cryptocurrency.

[Wayan_Pedjeng]

I am holding a bank account for 12 years now and I have never faced any problem with the banks. My only complaint is that the fee is a bit high. That said, the advantage with crypto is that you don't need a private account to store your coins. You can create a wallet on MEW or Blockchain.info and store the coins yourself.

[Mihaylovic]

yes i think so. but it is only teorically safer. i mean you should use a safe internet connection and you should use a totally safe non infected computer/device to connect your electronic wallet. in this case you are safer than a bank. but in any case whenever you want to exchange it you have to use a centralized exchange and take some risks again.

[W2014]

I have a hardware wallet and I can be sure that my money is on the most safest place on the world! Nobody won´t steal my money. And also in crypto there is nothing like devaluation!

[eert]

I think your money is absolutely safe in the bank, but you don't have full control over it. Money is safe, but it doesn't grow much, it just loses its value to inflation. And in encryption, it can grow a lot as an investment, but it's not very secure if you don't have a hardware wallet.

[Ksenia4Ksenia]

Of course safer, only you control your money! But now there is a very strong market volatility, so far in the Fiat currency and in the Bank our investments are more preserved! At least they can not be reduced by 3 times!

[bisdak40]

I think it's safer to keep the money in the bank but it's more profitable to invested in the crypto currency market !

I agree, money in the bank is safer but it is more like sleeping money because the interest rate is so low that you can hardly notice the interest gain annually. It's different scenario when your money is invested in crypto because of the risk that you might lose it all or it's the other way around. You can gain more is things worked out well with your investment. That is why they said that invest money here in crypto which you can afford to lose.

[Strannik-74]

I think that the crypto-currency world is a sphere in which people earn money, if you want to leave your money safe, you should use the services of banks, because your money will be insured

[andriw]

if we talking about security then it will be safer stored in the bank, because, in the bank, there are guarantees from the state about our money,
whereas in crypto there is no guarantee our money will be safe.
but if we talking about crypto is everything about investment, our money/assets will grow as long as the development of crypto capitalization. but if in the bank, our money cannot grow significantly, only from interest.

[namtran694]

Of course cryptocurrencies are not safer than banks. The banks guarantess everything to you but there is no such a guarantee in cryptocurrencies. It is possible to lose your asset if you do a mistake

[thilieu241]

I think that it is safer to keep it at the bank. After all, cash can preserve the value. If it is replaced with a crypto currency, it is difficult to be stable in value. But cryptocurrencies also have a good place to earn more profit. It can Let us become rich, but also may lose a lot of assets!

[Winner]

I think that the crypto-currency world is a sphere in which people earn money, if you want to leave your money safe, you should use the services of banks, because your money will be insured

The money that you have could be insured but usually there is a catch to it. I wouldn't want to have people holding the money for insurance because this is a trustless society.

[kwabeedat]

Well if you're talking about the profit you can get from it, I'll rather opt for crypto because as the risk is high so is the profit high. Also, there are banks that couldn't handle the funds of investors and went into the dark, but in crypto your money is always with you until maybe you loose your password.

[pharaon]

Of course cryptocurrencies are not safer than banks. The banks guarantess everything to you but there is no such a guarantee in cryptocurrencies. It is possible to lose your asset if you do a mistake

Yes, that's true, but if you have knowledge and skills in the field of crypto-currency, and you are rightfully investing your capital in crypto-currencies, then you can earn more and more quickly than if you have money in the bank.

[cryptoblue77]

I don't see any wrong, you can keep you money in crypto, but you have to keep it in a more established coins such as Bitcoin, Ethereum and a few others. It would turned out to be even more profitable compared to keeping at the banks.

[mathauyn]

it's safer and more liquid in the bank where you can easily withdraw your money in time of emergency for now but hopefully in the future this will be changed. Cryptocurrency value is very volatile and ofcourse there's always a chance your wallet will be hack so it's kinda unsafe in a way

[nwanne]

I will be honest with you, In as much as I love crypto and want it to succeed and over shadow our traditional banking system but the truth is that I will feel more safer to love my money in the bank. Crypto is risky and once you lost your money it is gone forever.