Is Your Money Safer In Crypto than at the Bank?

[cryptobroseph]

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

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[vike]

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

[greyday]

It depends on the country, but for most I would say a pretty solid no.

[allanr]

Yeah it safe enough to have your asset in crypto, but there some risk you need to consider before move your fiat into crptocurrency, the value is not stable today you buy it at 100 usd tomorrow it can be 10. And you better ready if that happend or youll be broke af.

[sousay]

When it comes to the safety of the money of course bank is one of the safest.But if you want your money to double or tripple or even more you can put/invest it in crypto but no assurance.

[Jinz02]

I think bank is safiest place for my money but i like crypto too because you dont need to bring atm or money if do you have digital wallet then you can buy anything you with out cash and atm cards.

[boyjackyou]

Safer? i dont think so,because fiat currencies has less transparency ,banks are the only people who are going to be more wealthy in the future,which is why it wont be good for most of the people as it isnt adopted yet by most of the people in different countries.You are going to be risking too much when you put your money at risk.

[Encelad]

Millions of crimes are committed annually using cash. Slightly fewer crimes are committed in the sphere of the economy, with the help of various funds and off-shores. And only a small percentage of all these crimes with the use of crypto currency.
Banks every day "rob" ordinary citizens through high interest rates on loans.They will never give up the hen that lay golden eggs,. The economic war between fiat money and cryptocurrencies will be very tough.

[Quidat]

Millions of crimes are committed annually using cash. Slightly fewer crimes are committed in the sphere of the economy, with the help of various funds and off-shores. And only a small percentage of all these crimes with the use of crypto currency.
Banks every day "rob" ordinary citizens through high interest rates on loans.They will never give up the hen that lay golden eggs,. The economic war between fiat money and cryptocurrencies will be very tough.

Banks wont really leave their place yet they would know that people would always prefer on using up government backed institutions just like banks.They do make money on other peoples money which they do made it as a business believing that our funds is really fully kept but thats how banks do make use or utilize into their depositors money which really pisses me of but when it regards to security of local fiat money i do still trust banks in the end.

[Mrs Troll]

Always split everything and share risks, that's more secure Your money in the bank could be taken away by government, inflation or judge (dependence of country). Your money in bitcoin will even rise every time when Tim Draper will speak about 250 000$   But it still may be hacked one day... So the most secure option will be share 50/50 between bank and crypto, that's how I do it.

[ofeefee]

I think that is very important to determinate what do you want to do with your money. If you want to save them, than the bank is the best option - very low rewards and very low risk. If you want to earn money and you are looking for profit, than the crypto market is for you. Potential very high profits, but high risk involved, as well.

[Usui-Kun]

Your money is safer of course at the bank since the security and consistency is there, it is less likely that your will get robbed by a bank than getting hacked with your wallet. But if you want to make more money faster then crypto will be the best option rather than the slow and little interest your bank is offering you.

[Pearls Before Swine]

It depends on the country

That's the key.  You'd probably be relatively safe in a country like Switzerland or Canada, but not at all safe in a bank in Venezuela.  Either way, most bitcoiners believe that banks are horrible places to keep their money, and security is just one of the reason. 

Agree with the above that you aren't likely to earn much money at all by any of the bank products available, especially right now when interest rates are close to zero.  If you keep funds in a savings account, you're lucky if you earn anywhere close to 0.25%, and that's nothing.  You'd be much better off putting the money you'd store in a bank into bitcoin.  Now that it's been beaten back from it's all time high, it's appearing to be a screaming buy.

[coinswebid]

i think if you keep your money in traditional assets such as Gold, land, Home etc is safer than crypto or Bank
so, if you keep your money in Bank or crypto is not safe, because anytime the bank can freeze your account, wich mean not safe  

[Numir]

Good question. Puting your money in both of those options is safer than one alone.
If you made a good money you should think about to cash some part of it.

[Dcoollakky247]

I would have loved to say it is more safer to put your money in bank than in crypto but a good investor will rather invest bis/her money in crypto and awaits his/her return on investment. Even the safety of putting your money in the bank is not  100% guaranteed.

[Harriti]

I think both keep money in Bank and crypto are really risky. You can lose all your money in bank or in crypto by hacker and the recent hack is an example, more than 24k ETH hacked although people keep their MEW private key very carefully. Beside, the value of your money when you keep in bank will be the same but when it's crypto, your money will rise or fall depend on the price of crypto market. But for me I prefer keep my money in crypto cause I don't even have any bank account and I don't want to use it.

[molenracing]

No, in Crypto the risk of falling is huge. but the value up is also very great. meaning that if I put money in Crypto, the opportunity to earn profits is huge, but the risk of losing is also great. while at the Bank, no one expected the value would rise, but put the money in the bank more secure.

[Cryptointellection]

It depends on what your definition on safe is. Did you know the money you put in your bank account is not your money anymore? The day economy goes down like in Greece, you cant get "your" money. Check the details of your bank, somewhere in there you will read that the money you put into your bankaccount isn't yours anymore, but it is some value you owe them. I was really shocked when i learned about the way banks work..

[mousepatrol]

It's safer in the bank if you're dumb about crypto, buy high and sell low, leave your assets on exchanges, fall for phishing scams, use terminology like HODL instead of just saying HOLD, or buy coins like Rupee (RUP). For the record, I know nothing about RUP, just seems like the epitome of scammy.