TOPIC: Pros and Cons of saving fiat versus saving Bitcoin in this current econom

[qwertyup23]

I am doing both, there are rumors of war and an existing one plus all of those health emergencies and that's why I'll be saving cash as well. At the same time, I still have my bitcoins on hold because of my future plans and I believe that this is going to be really profitable more than I've seen it in the past. Despite I'm already in profit, I'm not going to remove that hope of earning more. I'm not that greedy at all but that's part of my investing plan.

Fiat will always be fiat. While its value may decrease/increase in the given circumstances surrounding the world, it is considered widely by all countries to have a value that is accepted all throughout.

The problem with cryptocurrencies is its nature and acceptance. Its value is highly volatile in a way that it can vary from time-to-time depending on several factors. Another problem surrounding is its acceptance by countries. China has started prohibiting its use and the biggest exchange in India has closed due to strict regulations and implementations from their government.

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[jrrsparkles]

Never save the money you earned in fiat form because the value of fiat currency keep decreasing so about saving Bitcoin is the better choice but from acceptance perspective fiat is more preferred even in 2022 but in digital format as we know it may change when people think the central authority of monetary system is not good then bitcoin will get more priority as medium of exchange and by that time we see more and more stores with sign boards of bitcoin only accepted here.

[mu_enrico]

Never save the money you earned in fiat form because the value of fiat currency keep decreasing so about saving Bitcoin is the better choice...

If the future trend goes along with the historical data, this statement is correct, because the BTC price will go higher... but no one can predict the future, and the past trend doesn't always shape the future trend. That said, from a neutral perspective, saving in BTC is risky, lots of unknown, especially in 10+ years, while saving in fiat is pretty much predictable. Sure, there will be inflation, but it's already taken into consideration when people save in fiat.

[lixer]

7 Bitcoin ensures ease to do business with both local and international parties that involve huge amounts of cash, without having to incur heavy charges considering the volatility of the exchange rate, unlike fiat money.

I do not know how this sentence can be true, as the Bitcoin propagation globally is still in the beginning stage and it is impossible to compare it with the prophecy of paper money that has hundreds and perhaps thousands of years.

In general, Bitcoin is an idea and carries a high risk, so if you want to invest, you must understand all the risks before you deposit your money and invest wisely and not recklessly.

That was true and one example is when a whale sends btc to someone else where he will only pay cents for the fee. Imagine how convenient was that? But, if this happens with other payment methods then I think so many stuffs must be done first and then the fees are also going to be expensive. Bitcoin is not new but it had existed here for I think 13 years already and with that time span, many things have happened already.

Btc and fiat have some similarities and both has their pros and cons too. This is why they are always being compared by the masses. Btc was once an idea but have came to reality already. It's now a product but yes its risk is high than in fiat. People should be aware with that.

[Fortify]

Having known that fiat money is a type of currency, a bill of exchange, a negotiable instrument, otherwise known as paper money or dollar bill used to purchase or pay for products or services that ensures our comfort, it is rather debatable whether saving fiat in the bank, at home or in bitcoins, is a good idea.

Bitcoin, however, is a digital currency. It utilizes a computer network as a medium of exchange that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. Let us, therefore, consider some of these pros and cons to see the light:

1 Bitcoin is secured by blockchain technology, thereby making it difficult to counterfeit or toy with.

2 Bitcoin hardly has a physical structure to speak its value unlike that inherent for fiat money. It operates on a decentralized infrastructure that makes direct money transfers quick, traceable, transparent, and immutable.

3 The number of parties involved is technically only two for bitcoin, unlike fiat where third parties must be present.

4 As the current world change has been from the traditional mode of exchange to electronic mode(digital mode). Bitcoin has an upper hand, as it is purely digital.

5 Bitcoin has in recent times proven to be a strong alternative to fiat money, thereby making it a unitarian global currency.

6 Bitcoin and many cryptocurrencies have just a finite number of the same available.

7 Bitcoin ensures ease to do business with both local and international parties that involve huge amounts of cash, without having to incur heavy charges considering the volatility of the exchange rate, unlike fiat money.

The pandemic shook the economy and exposed flaws in both personal and public systems of commerce. Recession became an aftereffect after the World pandemic and the ongoing war between Russia and Ukraine has added to this quotient. It is however noteworthy to examine these pros and cons of saving fiat versus that of saving with crypto in this period, to be ready for uncertainties.
Knowing what you now know, would you rather save fiat more or save in Bitcoins more?

Let's face it, most of the criteria you have listed is also applicable to fiat currency and contrary to what most people around here might claim - banks have a pretty exceptional track record when it comes to security. There are also various flaws in your points, like number 6 where you mention that cryptocurrencies have a finite number available, but in actual fact there are many crypto coins out there which have flexibility often determined by the developers on whether any new amounts get introduced, so buyer beware on that front. Number 5 is another flawed argument, as we already have billions, if not trillions of transactions taking place each day via electronic mechanisms without even factoring in cryptocurrency - if crypto disappeared tomorrow it would have a fairly negligible impact on future progression.

[Anonylz]

Having known that fiat money is a type of currency, a bill of exchange, a negotiable instrument, otherwise known as paper money or dollar bill used to purchase or pay for products or services that ensures our comfort, it is rather debatable whether saving fiat in the bank, at home or in bitcoins, is a good idea.

Bitcoin, however, is a digital currency. It utilizes a computer network as a medium of exchange that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. Let us, therefore, consider some of these pros and cons to see the light:

1 Bitcoin is secured by blockchain technology, thereby making it difficult to counterfeit or toy with.

2 Bitcoin hardly has a physical structure to speak its value unlike that inherent for fiat money. It operates on a decentralized infrastructure that makes direct money transfers quick, traceable, transparent, and immutable.

3 The number of parties involved is technically only two for bitcoin, unlike fiat where third parties must be present.

4 As the current world change has been from the traditional mode of exchange to electronic mode(digital mode). Bitcoin has an upper hand, as it is purely digital.

5 Bitcoin has in recent times proven to be a strong alternative to fiat money, thereby making it a unitarian global currency.

6 Bitcoin and many cryptocurrencies have just a finite number of the same available.

7 Bitcoin ensures ease to do business with both local and international parties that involve huge amounts of cash, without having to incur heavy charges considering the volatility of the exchange rate, unlike fiat money.

The pandemic shook the economy and exposed flaws in both personal and public systems of commerce. Recession became an aftereffect after the World pandemic and the ongoing war between Russia and Ukraine has added to this quotient. It is however noteworthy to examine these pros and cons of saving fiat versus that of saving with crypto in this period, to be ready for uncertainties.
Knowing what you now know, would you rather save fiat more or save in Bitcoins more?

1- how often do you come across fiat counterfeit?
2- how does a physical structure be a con for fiat direct transfer?
3- I think it is also between you and your bank
4- bear in mind btc is not universally accepted so I doubt it has the upper hand in this case yet.
5- There are limitations still
6- btc has a limited supply which could also be a con when the entire world decided to adopt it.
7- btc adoption is very minimal unlike fiat so doing business with ease for now is not present.
in the end btc serves as a good alternative to fiat, both are relevant in their different ways, btc doesn't have the acceptance fiat has hence it will be very difficult to ignore this, however great btc is, fiat will always have the upper hand for now in terms of day to day transactions.

[Hydrogen]

Knowing what you now know, would you rather save fiat more or save in Bitcoins more?

Is there anyone who saves in fiat, when inflation is greater than 8%?

Has it somehow become a recommended investment strategy?

Diversification strategies are out. Saving in fiat is in.

While recent bitcoin trends have not been great. The question is whether people notice recent changes in bitcoin's price behavior. The recent plunge in BTC makes no sense at all. Its a higher percentage drop than china banning bitcoin. With no events that would suggest such a price decline should occur.

Bitcoin's recent trading in lockstep with the DOW is also a big question mark and a huge departure from its normal trading cycle.

How do people explain these things, if they notice them. That could be the real question to ask.

[Silberman]

Never save the money you earned in fiat form because the value of fiat currency keep decreasing so about saving Bitcoin is the better choice but from acceptance perspective fiat is more preferred even in 2022 but in digital format as we know it may change when people think the central authority of monetary system is not good then bitcoin will get more priority as medium of exchange and by that time we see more and more stores with sign boards of bitcoin only accepted here.

Not only fiat is printed without limit, fiat is being printed at an accelerated pace, at least with bitcoin even if we know that new bitcoin is being mined each day, we know there is a limit to the coins ever created and the inflation of bitcoin goes down every  four years due to the halving, so just from those points alone we can see that saving our wealth in bitcoin is more advantageous than to do so in fiat, even if at the moment fiat is still by far the one that is the most widely used as a currency out of the two.

[el kaka22]

One thing for me; not using banks. I started my crypto adventure based on not having any type of love for the banks and that meant that if I could keep all of my money in crypto then I would and I would only put any fiat in my bank account only when I need to spend it, until I need to spend it, it stays in the crypto world. Hell even if I want to keep it in fiat and not in crypto because of a bear run or anything, then I would turn it to stablecoin and just be done with it.

So, I beleive that it shouldn't be a problem to pick crypto over banks. It is literally a way to make yourself the bank and people are missing that which is a big problem in this market.

[AicecreaME]

Given this current state of economy here in our country, I can say that it's not really a wise move to just save your money in banks. Specifically speaking, the traditional ones. Because the inflation rate in our country is getting higher and higher as time passes by. If someone will just rely on the banks for saving and its interest, they'll just be disappointed. Since inflation rate keeps increasing and not a bit decreasing, the interest is pretty much lower compared to the tax imposed.

This will left you a fund in your account that barely earned an interest. An interest that will not even gonna pay for one transportation fee. And mind you, that interest is already good for a year. You need to have millions in your account so that the interest would be felt and noticeable.

Hence, it is better to just save with digital banks that offer higher interest rate than the traditional ones. For those who don't really like or know bitcoin, digital banking could be your option. But as for me, I keep most of my earnings in bitcoin. But i also make sure that I have a spare and cash on hand apart from my savings in btc to be sure in case of an urgent situation.

[KingsDen]

It is good to save in bitcoin. Fiat is no match for saving in bitcoin especially if you will save for a long time. Inflation is real and kills Fiat so fast. I am so much surprised that my local Fiat could buy March this year, it cannot buy today. Before now we notice inflation only if there are like many years, but today only in moths the effects of inflation is seen.

There is no regrets on saving in bitcoin unless if one is unable to safe keep his/her private keys. Then what I don't know is saving Fiat in banks and saving bitcoin in exchanges which one is better.

[Mauser]

It is however noteworthy to examine these pros and cons of saving fiat versus that of saving with crypto in this period, to be ready for uncertainties.
Knowing what you now know, would you rather save fiat more or save in Bitcoins more?

I am trying to save both fiat money and crypto currencies to be more diversified for the future. The uncertainty you mentioned is what makes it hard for me to only save in one or the other. The biggest problem for me is that all my monthly expenses are in fiat. I need a fixed amount each month in fiat money to pay for housing, utilities, food and car insurance. For that I need to have a savings account that could cover any shortfalls very quickly. Only relying on bitcoins and other cryptos is still too risk, as long as the crypto prices are fluctuating heavily. My monthly salary is also in fiat, that covers any expenses and when I have excess cash left at the end of the month I will invest it in cryptos. In my opinion cryptos offer the best long term value and protection for investors, we just can't rely short term on it. If there is a bear market like we have this year, the worst thing that could happen is to be forced to sell cryptos to cover fiat expenses.

[Gyfts]

I don't consider myself to be a Bitcoin absolutist by any means, but I am more of an absolutist towards crypto than I am of fiat. Saving fiat has no inherent benefit due to built in inflation that is systematically introduced by the central banks to maintain the economy. Had the fiat systems been pegged to a tangible asset, or revert back to the gold standard, I'd feel differently.

Even with any drawbacks of BTC, I'd choose it over fiat where my purchasing power is lost by default year over year.

4 As the current world change has been from the traditional mode of exchange to electronic mode(digital mode). Bitcoin has an upper hand, as it is purely digital.

Slight push back on this point: I agree with you generally, but it's also true that folks living in the first world take digital media for granted. A lot of people don't have this luxury which pushes further from the goal of mainstream adoption.

[Solosanz]

I don't know why you're seems like attacking fiat over Bitcoin advantages, but you're forget you're still using fiat to pay daily expenses and most of your money is still on fiat money. The reason is you're worried if Bitcoin in bear season, you would suffer a losses if you're sold it.

Don't need to compare between fiat and money, each of those currency can work with each other depends on each advantages and disadvantages.

[dimonstration]

I don't know why you're seems like attacking fiat over Bitcoin advantages, but you're forget you're still using fiat to pay daily expenses and most of your money is still on fiat money. The reason is you're worried if Bitcoin in bear season, you would suffer a losses if you're sold it.

Don't need to compare between fiat and money, each of those currency can work with each other depends on each advantages and disadvantages.

I notice this too but we can’t blame them because we are on Bitcointalk forum and most of user here hated fiat that’s why they are using Bitcoin and landed here. For me they indeed have there advantage and disadvantage and we should not comparing these two subject because it has a different mechanism. Fiat is solely classified as currency while Bitcoin has a wide range of classification.

[Z-tight]

Never save the money you earned in fiat form because the value of fiat currency keep decreasing so about saving Bitcoin is the better choice

Bitcoin is inflation-resistant, but it also does not hold value for too long, it is a speculative asset, and many people don't think it to be a store of value yet, but there can be no arguments about how btc value increases long term, but short term is a headache for people that are trying to get rich fast. So as people save or invest in bitcoin they should know what can happen in the short term and what is inevitable in the long period, so they get everything straight.

but from acceptance perspective fiat is more preferred even in 2022 but in digital format as we know it may change when people think the central authority of monetary system is not good then bitcoin will get more priority as medium of exchange and by that time we see more and more stores with sign boards of bitcoin only accepted here.

Hypothetically i want it to happen, but realistically i don't know how possible it may be, good thing is nothing changes for the btc network, it is meant to be an alternative that offers many things different to fiat, and it will continue to be that.

[virasisog]

I don't know why you're seems like attacking fiat over Bitcoin advantages, but you're forget you're still using fiat to pay daily expenses and most of your money is still on fiat money. The reason is you're worried if Bitcoin in bear season, you would suffer a losses if you're sold it.

Don't need to compare between fiat and money, each of those currency can work with each other depends on each advantages and disadvantages.

I notice this too but we can’t blame them because we are on Bitcointalk forum and most of the users here hated fiat that’s why they are using Bitcoin and landed here. For me, they indeed have their advantage and disadvantage and we should not compare these two subject because it has a different mechanism. Fiat is solely classified as currency while Bitcoin has a wide range of classification.

As for me, saving both would also be wise. We don't have to hate fiat if we're into Bitcoin because no matter what we do, fiat will always be our main currency. I'm saving fiat for emergency purposes because it's convenient, especially in purchasing essential goods since most merchants still don't accept Bitcoin. I'm also investing in Bitcoin on a long-term basis because I trust it as an investment first. I believe that both could work together depending on our usage and purpose.

[tygeade]

Given this current state of economy here in our country, I can say that it's not really a wise move to just save your money in banks. Specifically speaking, the traditional ones. Because the inflation rate in our country is getting higher and higher as time passes by. If someone will just rely on the banks for saving and its interest, they'll just be disappointed. Since inflation rate keeps increasing and not a bit decreasing, the interest is pretty much lower compared to the tax imposed.

This will left you a fund in your account that barely earned an interest. An interest that will not even gonna pay for one transportation fee. And mind you, that interest is already good for a year. You need to have millions in your account so that the interest would be felt and noticeable.

Banks are the main reason why crypto became a big thing. If banks did their job well enough then there wouldn't have been a need for something like this to begin with. Obviously, it is not going to be an easy ask, because bitcoin making more profit than what interest rates give you is not a given thing quickly, you need to be able to wait for it.

Think about all the people who bought above 60k+, those people are still waiting for something to happen, and would have preferred interest in a bank. But if they wait, I am sure that they will make more profit eventually but that will take some time and maybe even over a year now as well meaning they would have to wait nearly 2 years to get that higher profit.

[Silberman]

Banks are the main reason why crypto became a big thing. If banks did their job well enough then there wouldn't have been a need for something like this to begin with. Obviously, it is not going to be an easy ask, because bitcoin making more profit than what interest rates give you is not a given thing quickly, you need to be able to wait for it.

Think about all the people who bought above 60k+, those people are still waiting for something to happen, and would have preferred interest in a bank. But if they wait, I am sure that they will make more profit eventually but that will take some time and maybe even over a year now as well meaning they would have to wait nearly 2 years to get that higher profit.

I agree, however banks had a monopoly, even if there were different people behind each bank at the end they still offered roughly the same services so they got complacent thinking there was never going to be anything which could challenge their position.

But now all of a sudden a competitor appeared that they cannot destroy and that in fact can perform a great deal of their functions at not cost or at worst for a very small one, so they are still confused about what to do because bitcoin not only offers similar services, bitcoin itself is a form of money and it is quite strong in that aspect as well.