Is Your Money Safer In Crypto than at the Bank?

[SkustaClee]

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

When it terms of security, banks are still have a high security than cryptocurrency wallet but It is now better if we will invest our money in cryptocurrencies than banks because of the profitability.

[Julasic]

Not only that your money is safer in crypto than at the bank but it is also a means of investing in a project
In investing in a project you will make your profit in short period of time than saving your money in the bank where you will receive peanuts as profits.

[yrsat]

I doubt that crypto will be the best way to store your money than in a bank, there are big risks that the rate is unstable, both systems can be hacked or stolen, I usually hold the opinion that it is better to have your money and your cash in cash. A good bank can guarantee you your monetary security for a period of time and a case of theft, it can be tracked and returned, in crypto this will make it more difficult.

[actimelfortelun]

Of course Crypto is decentralized .But still I trust more banks, even they are controlled by the state .

[ufalo3]

Your money is safer in the Bank than in the crypto market. Crypto is a very uncertain market. Maybe you'll become a millionaire with little investment, or you can become weaker if the market goes against you with a few days, even a few hours.

The real fans of the cryptocurrencies will tell you that the cryptos are better (if we speak about savings). Sometimes yes but the risk to lose much here is very high. Traditional banks are more reliable.

[solovalley]

as long as I keep my money in the bank I never lose a bit. but when crypto there will be loss and also income. because crypto is an investment, not like a bank.

[Patmille]

putting your money on the bank is still the safest place than investing on crypto. but you can do both. Just do a well research before investing your money on a particular project there will be risk i know but there is also a chance to profit alot on your crypto investment.

[sfidler31356]

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.!!!!

[zimmah]

Remember, when you open a bank deposit, the money does not belong to you, but to the bank. During the global financial crisis, many banks who could not return money to their depositors, went bankrupt. In economically weak countries, banks are ruined even out of times of crisis. 
So, bitcoin is definitely more reliable.

P.S. I hope Tim's forecast will come true 

[ZonaCrypto]

When investing money in a Bank, usually the state gives insurance for a certain amount of guaranteed refund. In the case of cryptocurrency, this is not the case. But the percentage of Deposit in the Bank and the Deposit in cryptocurrency is very different. The Bank interest is much less. So sometimes the risk is justified.

[Dulmwer]

Indeed, bank is one of the most secure place to keep cash, however it likewise relies upon coutry. For instance in my nation banks are more secure, more beneficial in digital money! Security suggests the nonattendance of dangers. What's more, the hazard is constantly present in issues identifying with acquiring cash, particularly substantial income. Along these lines, keeping in mind the end goal to accomplish something, you need to hazard, to escape the safe place.

[stunedi]

my money is safer in the Bank. this is why banks have created that people can safely keep their money. keeping money in cryptocurrency is very risky, because it is not known what will happen to it tomorrow. it will rise in price or fall.

[anaivanova726]

1000 % security in the Bank than in cryptocurrency . There are more risks in cryptocurrency and the market direction is constantly changing . For storage, I would choose a Bank, and for earnings cryptocurrency

[Mirnash]

Safer in banks, cryptocurrencies have different specifications. In banks, our money has a small percentage, in crypto, prices will be volatile because at any time they will increase or decrease.

[antogen123]

I think it's a sensitive issue . and it depends how you look at it and they have their risks

[Abiky]

The real fans of the cryptocurrencies will tell you that the cryptos are better (if we speak about savings). Sometimes yes but the risk to lose much here is very high. Traditional banks are more reliable.

Cryptocurrencies are better if you know how to manage and properly secure them. Since most people are not tech savvy enough to do this, they prefer Banks on top of a cryptocurrency like Bitcoin. Of course, the risk of saving money in a cryptocurrency is much higher than doing so in a Bank, but the results are positive over the long term when you save your money in crypto.

Depending on the person's interest, he/she would either save his/her money in cryptocurrencies like Bitcoin and Ethereum, or simply do so in a Bank. For low risk, reliable security, and stability of your funds, then a Bank is highly recommended. In my case, I have chosen to save money in both cryptocurrencies and Banks to benefit from both. I can rest assured that half of my money is safe in a Bank, while the other is secured in cryptocurrencies like Bitcoin and Ethereum for greater chances of multiplying my capital over the long term.

[gredisgold88]

Cryptocurrencies are better if you know how to manage and properly secure them. Since most people are not tech savvy enough to do this, they prefer Banks on top of a cryptocurrency like Bitcoin. Of course, the risk of saving money in a cryptocurrency is much higher than doing so in a Bank, but the results are positive over the long term when you save your money in crypto.

Depending on the person's interest, he/she would either save his/her money in cryptocurrencies like Bitcoin and Ethereum, or simply do so in a Bank. For low risk, reliable security, and stability of your funds, then a Bank is highly recommended. In my case, I have chosen to save money in both cryptocurrencies and Banks to benefit from both. I can rest assured that half of my money is safe in a Bank, while the other is secured in cryptocurrencies like Bitcoin and Ethereum for greater chances of multiplying my capital over the long term.

the question is who will be responsible if our money is lost in crypto? we never know that crypto is 100% safe.
banks are the best option to save money and legal.

[usantosluu425]

it's hard to compare. The use of electronic money, are treated as a form of investment and risk. As for depositors in banks, saving nature, this can save opportunities profitable but low profit increase

[Roksodhon]

Of course keep the money in the bank is safer although the income is not much. While invest money in crypto also uncertain how much profit, because we have to understand first how the price movement in the market, while the current price of crypto very fluctuating so must be carefull to invest.

[vantungvtt]

In  my mind, the both places are not safe. Hackers can take your money everywhere