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

[Cryptomultiplier]

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?

[1714242013]

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[mk4]

4. Bitcoin's upper hand is not that it's purely digital, but the fact that bitcoin can be private if you know what you're doing; unlike with digital transfers with banks/neo-banks.

5. This is totally debatable.

6. True, but 99.999% of cryptocurrencies doesn't matter in the SoV/currency category because most cryptocurrencies are pseudo-equity. In the currency/SoV category — it's just BTC, and arguably ETH(totally debatable, as a small number of Ethereans are pushing the ETH as money narrative; not saying that I agree)

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?

You don't have to go all in on bitcoin or fiat, as you can go with both. People need to practice proper risk management with investing. In general though based on my personal situation(this should be different from person to person), I can go with higher allocation with BTC because I don't have much responsibilities.

[Rruchi man]

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

I don't know about other people's country and the situation of things there but with the current economic situation of things in my country and how our currency is constantly losing value against the dollars, It will be a regrettable decision if you choose to continue seriously saving in fiat. Personally what I have resolved to do this season is to continue to save more in bitcoins and keep less money in fiat just for accessibility and easy use sake.

[nakamura12]

Why not save both since both have some great opportunities to earn profit. The disadvantage of fiat is that it is not decentralised unlike bitcoin. When transferring fiat online is it can be easily trace by government especially if the person doing it is laundering money. I think it also depend on the country's economy if svaing fiat is profitable. After all, it is you who will decide to focus on fiat, btc or both. For me, I save both.

[blockman]

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.

[Fivestar4everMVP]

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

For those of us in crypto already, It is absolutely normal to agree that it's better to save in Bitcoin than it is with fiat due to several flaws in the fiat system. ( and this is not to that saving in Bitcoin does not have its own flaws as well).
But what about our Grand MAs and PAs? Would majority of them agree that it is better to save their money in Bitcoin even after agreeing to the flaws fiat money possess?
Bitcoin, just the same way it has captured the hearts of the younger generations, still needs to capture the hearts of the older generations amongst us...and on this note, it still have a very long way to go.

[Wexnident]

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'd do a little bit of both. I wouldn't really risk all my assets on Bitcoin, not as crazy as that one family that sold all their assets for Bitcoin (which paid off, but really, what are the chances of that happening again). I'm still going to manage my assets properly so I can respond to both emergencies and for saving up for the long term. I still haven't really withdrawn my initial investments on Bitcoin and I DCA as well so I don't think I'd have issues there. I still keep a part as fiat though, separate from the amount I invest and the amount I use for daily expenses and monthly bills.

[cabron]

^ "Nothing beats cash on hand" - Uncle Jack.

Cash will be a preferred one for everyone. Its still what is accepted the most in every store. Even the family that sold everything for BTC sure does have cash. I wouldn't believe all they have are BTC.

Since time is very uncertain however, BTC will not hurt and will even give profit when bulls come running.

[Darker45]

Of course, you don't save your wealth in a currency or an asset which depreciates. That would be stupid. It defeats the very purpose of saving. So Bitcoin is the better choice.

But then we cannot deny that the world revolves around fiat. It is next to impossible to live with Bitcoin alone. Stores, shops, schools, hospitals, hotels, transportation, and so on accept fiat rather than Bitcoin. Therefore, you need fiat. So keep your savings in Bitcoin but it doesn't mean that you'll convert all your fiat into Bitcoin. You still should keep a good amount of fiat with you.

[bitzizzix]

One of the main advantages of digital currencies that gave a significant impetus to the bitcoin vs fiat currency debate is that they are safe, fiat currencies are made of paper and are prone to counterfeiting. But people can hardly fake digital currency on blockchain protocol, transactions are very fast and also secure.
but in life we still really need fiat to be able to meet our needs using fiat so I use both and save more bitcoin and less fiat to meet any needs and bills.

[Don Pedro Dinero]

I don't see the incompatibility, to me the OP's point is a false dichotomy. I have savings in fiat currency and savings in bitcoin. Although bitcoin savings could be considered more of an investment, as I expect it to be worth much more in the future, unlike fiat. The time horizon is different as well. I have fiat savings for short term contingencies and for some future expenses in the medium term, while my bitcoin investment has a long time horizon.

[Davian144]

I don't see the pros and cons of keeping something like Fiat and Bitcoin because so far I've kept both Fiat and Bitcoin the way I wanted. I keep 40% of my assets in Fiat and the rest is in cryptocurrencies like Bitcoin as much as 30% and a few percent into altcoins. So for me there are no pros and cons to this because everyone still needs a Fiat for the necessities of life even though they also need to keep Bitcoin and keep trying to get it every day.

[hatshepsut93]

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

Counterfeiting fiat money isn't exactly easy. Most people encounter counterfeit banknotes only a few times in their lives and in small numbers.

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.

Bitcoin transfers are not quick, many banks and payment networks these days offer nearly instant transactions. Bitcoin tx takes 10 minutes on average, if you pay enough fees to get in next block. And it can take hours or days if your fee is too low.

Transparency and traceability is bad, it means other people can see where you are sending money.

Immutability has pros and cons. If you lose your money, no one will recover them for you. Zero chance.

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

Again, third parties can cause harm, but also can cause good. They can fix your mistakes and save your money from certain bad situations.

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.

In terms of digitalization, Bitcoin has no upper hand over fiat, which is also digital. People these days are paying with fiat via cards, phones and apps.

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

Actually its the opposite, the image of Bitcoin as a hedge against inflation and economic uncertainty was shattered.

[hugeblack]

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.

[kaseygriffin]

I find without mentioning that OP's presentation is really unconvincing and irrelevant, because not everywhere on this earth has the same economic operation. And knowing that BTC accumulates them does not contain both risks and benefits, I think getting rich with a specific method with them would. We need fiat to live the life going on around us, and don't just look at the happenings around us and blame them for not being good or good because it's still the most convenient means. As for BTC, consider it as a means of getting rich in fiat and a well-functioning formula chain. Any accumulation of assets is reasonable.

[lionheart78]

I still need to save both.  The current economy is still fiat driven so it would be troublesome if I only save my funds in cryptocurrency form.  Proper management is the key to being able to take full advantage of the two financial systems.  So the action lies with the question, why take one when we can take advantage of the two systems?  Given the pros and cons, I think Bitcoin still needs time for improvement to compete with the transaction speed of the digital fiat system.

I find without mentioning that OP's presentation is really unconvincing and irrelevant, because not everywhere on this earth has the same economic operation. And knowing that BTC accumulates them does not contain both risks and benefits, I think getting rich with a specific method with them would. We need fiat to live the life going on around us, and don't just look at the happenings around us and blame them for not being good or good because it's still the most convenient means. As for BTC, consider it as a means of getting rich in fiat and a well-functioning formula chain. Any accumulation of assets is reasonable.

True that since many points given by OP had been refuted by earlier replies.  It simply means that we still need fiat currency and Bitcoin is yet to be ready to take over the financial world.

[Reid]

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

I don't want to pick one because both of them have their usage in my case.
I save fiat at home for daily needs and emergencies and I have a single bank account where there's not much money in it.
You cannot put it all in an asset like Bitcoin because there's not many merchants who accepts it in this generation. Maybe someday.
But, I could say I have a larger amount saved in Bitcoin than what I have in fiat. I don't really care about the volatility yet. It could go moving anywhere but the amount of Bitcoin that I have will remain intact as long as I don't sell it.

[noorman0]

-snip-
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.

If you're talking about today, then it's still not yet. Bitcoin has a side of skepticism on the one hand, the problem is that public addresses are also not equipped with owner information. I don't consider onchain transactions under $100 to be an important business moment. For now I have never heard that bitcoin is used in the routine transactions of business people, I don't know what is happening out there (especially on the dark web).

[pooya87]

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

The second part of this statement is wrong and I hate how some people try to talk about bitcoin and then sneak altcoins into the discussion.

Considering the fact that majority of altcoins are just copying the existing technologies and don't really have any innovations, that makes them all identical. This means you can say their supplies are capped because if altcoin A is a copy of bitcoin and altcoin B is also a copy of bitcoin and both have a capped supply, they still are not "finite" since altcoin C can be created by copying bitcoin and increase that supply.

Meanwhile bitcoin is unique and you can't increase the supply by any means including but not limited to copycoins.

[palle11]

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.

This is an important gain for using bitcoin against fiat. Apart from that fiat depreciates , you have exchange your btc to any available fiat currency you want to transact in across the globe, what you only need is to use a crypto exchange and you easily send to your client on whatever currency they are requiring on. This is simple to do, exchange like binance does this kind of service very swiftly.