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February 23, 2022, 08:12:03 PM |
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Bank, according to Wikipedia is a financial institution that accepts deposits from the public and create a demand deposit while simultaneously making loans. Banks are divided into different sorts, such as the Central bank, cooperative banks, commercial banks, Regional Rural banks(RRB), Local Area banks ( LAB), Specialized banks, small financial banks and payments banks.(WIKIPEDIA). Irrespective of the different names they may bear, they all have a common synonymous role which focused on transactions, savings of valuables and treasures.
Bitcoin' on the other hand, also allows for transactions just like the bank but as a "digital asset", it adds more value to your investment, in that, as a the value of every Bitcoin increases so is your investment value(money). At the moment, Bitcoin is experiencing a drop in price but you can agree with me that, the price as today is even higher than few years ago. Many people took a calculative risk of buying/investing into it and, it didn't take long that the value later stepped up and all those that took the risk of investing at the moments of the drop of the value were all smiling all the way.
But if such money that was used to invest in buying Bitcoin at the time the value dropped was rather deposited into the bank ( be it saving or current account), even in the next one year or more it wouldn't have multiplied to an increment level, but rather bank charges ranging from ATM maintenance charges to SMS charges and others would have rather cost a reduction in value to the very deposited amount rather than increment.
It's no more news that the cryptocurrency/Bitcoin is gradually taking up the role of the banking system in addition to it's value added investment returns. For the value of Bitcoin today is far way beyond the value it was five years ago, then imagine it's value in prospect in the next five years from now.
In every investment there is the tendency of loss and gain, but be it as it may, with Bitcoin the gain far outweighs any form of loss. Mind you, even banks liquidates and deposits goes down with it which may take a long period of months even years to repay the customers but without added interest/value to the actual desposited amount.
Of what use is it, having your money starched in traditional banks?
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