Parents on childs savings bank accounts are waste of time if not saving on BTC

[EluguHcman]

It is a reality fact that most middle class or rich parents as it may be classified, who has future plans for their underage kids usually creates bank accounts for them with designated periods of depositing funds in the account on a specific amount and also period of time.
So when the kid (s) grows up he/she can utilize the fund as desired but aimed on productive utilizations.

The expectations of the parents is to norture the kids on financial management and letting them know that storing money in the bank is the safest place so that you can be financially disciplined and also stay keep off from thefts.

Looking at this system, it is like investing on Bitcoin for a long term goal and accumulating more Bitcoin values in applying the DCAs and hodl in a specific period of time aimed to achieve a goal.

Comparing the parents motive in this digital era, such banking plans for kids is a waste of time.
For instance, imagine parents depositing the least $100 per month in the childs bank account assuming the child is 5years old, you will hold for more 13 years for the children to grow an adult before having access to the bank account.
That means the parents are funding the account on monthly basis for 13 years.

Assuming the parents applies this practice in Bitcoin investment, the parents would not only safe store the funds for the kid (s) to start up their desired life but has engaged the child in an investment whereas he/she will grows up, harvest the profits overtime and still keep accumulating and holding firmly the asset as a lucrative hope for his/her future.

Having the money stored in the bank would have it loose values considering the current economy situation and the possibilities that the future holds worsen economy threats.
Therein, the fiats are quite fast loosing values and inflation is distancing the stocks from gaining valuabilities.

If only the parents would understand the safety and productivity potentials in storing values in the digital assets as Bitcoin, then it would be better if they grow their kids minds of financial management and productiveness by redirecting them to Bitcoin instead of the banks.

Investors who had been in the Bitcoin industry for couple of years can attest the profitable rewards of holding and accumulating such assets on $100 monthly bases for 13 years or above depending on the kids age before getting things planned.

[shield132]

It is a reality fact that most middle class or rich parents as it may be classified, who has future plans for their underage kids usually creates bank accounts for them with designated periods of depositing funds in the account on a specific amount and also period of time.
So when the kid (s) grows up he/she can utilize the fund as desired but aimed on productive utilizations.

Rich parents usually know what they do and I believe the majority of them won't save pure cash in banks because rich people know more about inflation, stocks and trading but that's true about middle-class parents. Middle-class usually think that cash is their friend and they should save as much cash as possible but I know many of them recently take a loan to buy an apartment for their kids, which is a good investment when it comes to stability.

Majority of people are very sceptical about Bitcoin because they only hear bad news about it from mass-media. If you ask a random person about Bitcoin, there is a high chance that they'll tell you it's scam, pyramid, the money of criminals and etc... It's sad but many parents ignore Bitcoin investment and they can't understand what a big opportunity they are missing. I have convinced my relative to buy a hardware wallet, store it securely, buy Bitcoins every month on exchange and withdraw it to the hardware wallet's bitcoin address. This is really the best investment option right now when we talk about long-term and high ROI. I believe that everyone, who wants the best future for their kids, should invest in Bitcoin instead of cash and fiat. Just pure facts, the coin has been rising since day one.

[Churchillvv]

Of course we know how depreciative fiat can be in our banks over the years but that doesn't mean parents who are saving for their kids in fiat are wasting their time, some might be ignorant of how bitcoin can be a better option for such savings while some haven't realised it. Moreover, bitcoin is not in competition with fiat or not against fiat because from your statement it sounds as if bitcoin is against fiat.

You can suggest doing the same practice of saving or investing in the kids life using bitcoin instead of in fiat but saying it's a waste of time seems very wrong for me because it still has value at the end but depreciation is not evitable.

[Helena Yu]

Actually, most parents do invest their money instead of save it in banks.

But, they choose the safe investment that the gain can't hedge against school and medical inflation, usually a country has 4% inflation rate, but the school and medical inflation rate are around 10%-15%.

These parents choose to invest their money in time deposit (5% APY), ETFs (7% APY), gold (8%) or stock (depend on the stock). The thing is, most stock didn't bring a good amount return for long term, moreover these parents mostly choose investment that can't hedge against inflation, that's why the poor stay poor.

[Faisal2202]

I can't agree more with you, besides the profit if parents prefer to hold money in the form of BTC, they will save themselves from loss due to the devaluation of the money they stored in the banks due to inflation. And if some bad event occurs in these 10 or 13 years that those banks go bankrupt then you are rekt. I hope it will not happen if you choose a good bank. Although situations are not the same everywhere like in my country I can't true banks as they said by themselves they are not responsible for the money haha yeah they said it.

BTC is a good choice and if parents fear to go all in one coin then they can prefer some other one too. As diversification is a good thing to minimize the risk. Overall investing in BTC is way better than keeping your funds save in fiat form. But the tragedy is, most of the parents who care about there children and think of saving funds for them are not very familiar with BTC that's why they go to banks, their parents took them to banks, and now they are taking there kids to banks as well. The trend is shifting from generation to generation. But I hope in near future trend is going to change and it already has changes a lot.

[Don Pedro Dinero]

Actually, most parents do invest their money instead of save it in banks.

But, they choose the safe investment that the gain can't hedge against school and medical inflation, usually a country has 4% inflation rate, but the school and medical inflation rate are around 10%-15%.

These parents choose to invest their money in time deposit (5% APY), ETFs (7% APY), gold (8%) or stock (depend on the stock). The thing is, most stock didn't bring a good amount return for long term, moreover these parents mostly choose investment that can't hedge against inflation, that's why the poor stay poor.

That's what I was thinking, if the parents have a minimum of financial knowledge they will invest the money in one way or another. In countries like the US there are types of accounts for that, like 529 plans. Although I prefer to have the money myself, increase my net worth and if necessary I will be able to help them. But I think it is more important to teach them how to fish than to give them the fish. Spoiling them may end up with them spending their money on drugs and the like.

[Pandorak]

It is proven that bitcoin has real value, starting from freeing up the financial system, having a low inflation rate and also a high rate of return. The thread created by SquirrelJulietGarden has also proven this ^[1], you can read it and get good insight there. And therefore all modern parents should switch to bitcoin investment model for their children rather than FIAT. But, is it actually that easy to imply?

I don't think it's that easy to imply, children don't easily understand complex things like bitcoin, that's why parents prefer to go to FIAT. Whatever it is, parents have good intentions and know what is best for their child.

Let me take this to one case, imagine that a parent invests in bitcoin for his child, he buys bitcoin & moves it to a non-custodial wallet, he holds the keys, then due to force majeure circumstances the parent dies. So what happens to bitcoin? the bitcoin disappeared from circulation & the child got nothing.

Bitcoin is not for the uninitiated, it is more complex than we imagine.

[1] https://bitcointalk.org/index.php?topic=5499661.0

[Text]

Bitcoin has shown significant growth over the past few years, but it is still considered a high-risk investment due to its volatility. The concept of cryptocurrencies and blockchain technology might be difficult for some parents to understand, let alone explain to their children. It’s crucial that they fully understand the risks and rewards associated with such investments before deciding to invest on behalf of their children. Financial education is about more than just where to store money. It’s about understanding how money works, how to budget and save, how to invest wisely, and how to navigate the financial world. Whether the money is stored in a bank or Bitcoin, these lessons remain the same.

[TheUltraElite]

Try asking this question to any parent who has has a child in the last five years, they will definitely say they want bank deposits before thinking or committing to bitcoin. This is expected because they are accustomed with banks for years now and bitcoin is indeed something new to them and something that has made the negative news in the mass media.

Only few of the forum users here might actually think about doing savings in bitcoin.

If you ask me, I would suggest both because you need fiat in the long run and bitcoin is a upcoming currency for the next generations.

[Spaceman1000$]

Try asking this question to any parent who has has a child in the last five years, they will definitely say they want bank deposits before thinking or committing to bitcoin. This is expected because they are accustomed with banks for years now and bitcoin is indeed something new to them and something that has made the negative news in the mass media.

Only few of the forum users here might actually think about doing savings in bitcoin.

If you ask me, I would suggest both because you need fiat in the long run and bitcoin is a upcoming currency for the next generations.

It depends on the knowledge of the parents, as most parents are pulling out resource from the bank to invest in profitable business including Bitcoin, a lot of parents have realised that keeping their money in the bank and allowing it to lie fallow and subjecting it to inflation is not really helping out as the economic realities are changing. Fiat saving can mostly be useful for the day to day running of the family, but leaving a high deposit on the Banks are what a lot of parents are rethinking at the moment.

[Assface16678]

Try asking this question to any parent who has has a child in the last five years, they will definitely say they want bank deposits before thinking or committing to bitcoin. This is expected because they are accustomed with banks for years now and bitcoin is indeed something new to them and something that has made the negative news in the mass media.

Only few of the forum users here might actually think about doing savings in bitcoin.

If you ask me, I would suggest both because you need fiat in the long run and bitcoin is a upcoming currency for the next generations.

But again, it depends on the knowledge of the parents. Parents setting up bank accounts for their children is one thing that could secure a future for that child, or if in an emergency, they can pull out money to use for their child. Yes, storing money from banks will not give you money because the interest is too low, so even if you store it for too long, you will not have any benefits, unlike if you invest in bitcoin and hold it for years. But again, it depends on the capability and knowledge of certain parents. And how can parents be so sure that their holdings could earn or grow? We get that bitcoin is increasing its price over time, but we cannot be too sure because the market is unpredictable. So I think if you want a life savings, then storing in a secure bank is the best option. Meanwhile,  if you want to risk it and invest in bitcoin for future uses, then that is the most efficient way.

[Reatim]

Of course we know how depreciative fiat can be in our banks over the years but that doesn't mean parents who are saving for their kids in fiat are wasting their time,

I agree because most of the time, these parents are not just saving money for no reason. Most of them save money for specific purposes like for college for example so I think it is not all pointless to save some money for when the time comes.

It would be wise for the parents to save fiat for their kid at the same time invest in all kinds of opportunities especially in bitcoin while they still can.

[Zlantann]

If only the parents would understand the safety and productivity potentials in storing values in the digital assets as Bitcoin, then it would be better if they grow their kids minds of financial management and productiveness by redirecting them to Bitcoin instead of the banks.

Investors who had been in the Bitcoin industry for couple of years can attest the profitable rewards of holding and accumulating such assets on $100 monthly bases for 13 years or above depending on the kids age before getting things planned.

Most parents want the best for their children and will also prefer the best investment option. The problem is that most people are unaware of the potential of keeping Bitcoin for a long time. Many of them are used to traditional investing methods like stocks, fixed deposits and saving money in banks. I have an uncle who was very sick and he told his wife not to worry that he had saved enough money in the bank that would take care of the family if he died. A few years after his death, his wife began to sell properties because inflation had made the huge funds in the bank worthless. I am sure that my uncle would have invested his money maybe in Bitcoin if he was aware that keeping money in fiat is useless.

Bitcoin is not the only investment platform which is profitable, but it is worth adding it as part of your investment portfolio. DCAing for thirteen years means that the hodling will go through three halvings and we all know what it means. I used to have the intention of keeping some properties for my children but this perception has changed since I began to learn about Bitcoin.      

[348Judah]

Having the money stored in the bank would have it loose values considering the current economy situation and the possibilities that the future holds worsen economy threats.
Therein, the fiats are quite fast loosing values and inflation is distancing the stocks from gaining valuabilities.

Making savings with banks is nothing than a waste of time and monetary value, all coupled with loss of financial opportunities whereby you could have engaged in doing something more productive with your money in other to be able to make earnings from it than leaving it with the banks for them to make their own investment with it and offer you peanut or nothing as the case may be in some instances, not to even talk on the way inflation will degrade on the value of fiat over time if you hold in banks.

[moneystery]

storing your value in bitcoin is a good thing, but remember that storing it all in one basket is not recommended. parents also need savings in fiat where the value is more stable and parents do not need to worry that the value will drop at any time. so if i personally, for my child in the future, i prefer to save some of my money in fiat and also bitcoin, because at least i have a stable asset that i can use anytime i need it and also a bitcoin asset whose value can grow in the future.

[bettercrypto]

For parents who have children and also have businesses, they make a way for their children in terms of mutual funds, life insurance, and others because they think it is better than putting money in the bank.

And even more, they are expanding their businesses so that they have something to pass on to their children. And any parent is normal to think of such things; today, the child is luckier if the parent has extensive knowledge about bitcoin because, for sure, they will allocate bitcoin for their child a few years from now.

[buwaytress]

Assuming the parents applies this practice in Bitcoin investment, the parents would not only safe store the funds for the kid (s) to start up their desired life but has engaged the child in an investment whereas he/she will grows up, harvest the profits overtime and still keep accumulating and holding firmly the asset as a lucrative hope for his/her future.

A lot of assumptions there. Let's not overcomplicate children/parent relationship, etc. Just speak from a savings and investment perspective. You don't want to be making decisions purely on the basis of maybe and maybe not.

You do want to spread your risk. Bitcoin, like it or not, is a risk. Depending on the user, possibly even riskier than a state-insured deposit scheme that could still be inflation resistant with the right currency (say, the euro) and the right interest rate.

You don't just tell parents to rush into Bitcoin. So many ways that could go wrong. Buying on a broker/app where they don't hold the coins. Losing access if they do store on self-custody. Failing to pass on the coins if they die. Or Bitcoin going to zero (heh, you never say never to 1 million dollars, so you should keep the same view for zero).

[Davidvictorson]

storing your value in bitcoin is a good thing, but remember that storing it all in one basket is not recommended.

Point one, parents who want to take this paty should also consider diversifying the investment portfolio of their children. So yes I agree that it is the safest option to take.
 

parents also need savings in fiat where the value is more stable and parents do not need to worry that the value will drop at any time.

Point two, while I still maintain my stand in the first point I also acknowledge that there are some parents who risk appetite is high and can tolerate the risk involved with Bitcoin volatility. And if the thing they can we can't stop them.

so if i personally, for my child in the future, i prefer to save some of my money in fiat and also bitcoin, because at least i have a stable asset that i can use anytime i need it and also a bitcoin asset whose value can grow in the future.

Point three, the goal here should not just be about investing in Bitcoin for your kids rather the goal should include teaching your kids financial literacy because if you don't when they come off age, they would simply withdraw the bitcoins and make very poor and uniformed spending decisions.

[Natalim]

Try asking this question to any parent who has has a child in the last five years, they will definitely say they want bank deposits before thinking or committing to bitcoin. This is expected because they are accustomed with banks for years now and bitcoin is indeed something new to them and something that has made the negative news in the mass media.

Only few of the forum users here might actually think about doing savings in bitcoin.

If you ask me, I would suggest both because you need fiat in the long run and bitcoin is a upcoming currency for the next generations.

Even parents of these days would still be hesitant to save in bitcoin not only because it’s not totally accepted globally, but also the risk being contained with bitcoin investment is really high that anytime of the day if you end up with wrong decision making, all your funds will vanish as well. Unlike saving their fiat in a bank, they know that they’ll never lose its value even after couple of years and that made them confident and secured to trust banks over than bitcoin. And to be honest, while other parents might be aware already about bitcoin, but majority are still not sure and are closed to the investment idea when bitcoin is involved.

[jrrsparkles]

What are the odds of someone choosing Bitcoin over traditional investment even if the decide to get over with saving in a bank account their next possible option will be gold or something that they have been used to.

I am sure if someone is investing $100 every month for 13 years can give tons of returns and it is probably higher than their expectation but saying bitcoin to them is not convincing enough that is why they need to understand some terms like how money works, why there is inflation and importance of decentralization and so on.

Finally, if someone simply invests in fiat in their bank account, they are the biggest idiots.