Savings in Bitcoin vs Saving Money in a Bank

[bhadz]

That's true if you look at it as savings and control. But in terms of usage, Bitcoin is not yet widely accepted. This also becomes a limitation for people who have both Bitcoin and money in the bank. 
I still keep money in the bank, the amount isn't much different from what I have in my Bitcoin wallet. Especially for need-based funds and emergency funds, I will keep them in fiat in the bank.

Emergency funds should be kept in the bank or wherever you can have it accessed quickly and easily. Because we'll need that for those situations that we are not expecting. It's different from holding Bitcoin, the mistake of what others do is they're putting their savings in Bitcoin as an investment and when emergencies come, even if they're at losses they have no choice but to sell the holdings they hold. That's why we have to take it into account of having still those emergency funds that we'll likely going to save us in those important times.

[Hyphen(-)]

‎The best option is saving in Bitcoin, because it makes your money grow in value over a long term period, it gives you full custody and transparency. As for bank I can say your own savings loses purchase power especially in a country where inflation is high, it is controlled and regulated by the governments, whereby your withdrawal limits, or interest rates are adjusted without your content. I will surely go with saving in bitcoin but we can still say the best option is to use both.

Saving fiat is never an option once you know about Bitcoin because you can’t afford to lose some money in value while the number are still counting. Banks can offer you a good percentage rate to invest with them, but the money will lose its value over time due to inflation; the money you will have in your account will not keep its value because you can afford to buy what the money can buy when you save the money with your bank.
Instead if wasting time, it is better to buy and hold Bitcoin for long term, you will be guaranteed of your profit and still maintain the value of your assets.

[Rgram]

It's obvious that saving in bitcoin and saving money in a bank it's basically a two different things, and thier risk is completely different. The reason why I don't prefer making my savings in bank it's because even though you save for some years probably decades yet it will just remain the same why in some cases you might get charged for maintenance and other related things. So therefore I have considered saving in bitcoin as the best because it appreciates and also depreciate but even as that if you hold your savings in bitcoin for decades you will never regret holding it.

Depending on the purpose or potential use case of these savings, one might prove more useful than the other.

Understandably, you can save in Bitcoin and when it gets to the bullish seasons, you would see some profits but, should it be in the bearish seasons, you would come by some loss and you’ll be damned should the purpose of your savings arrive in a bearish season. In such times, you would be out for the fiat alternative which you never gave much thoughts and it would be too late for that.

They both do serve some purpose and it’s left for you to outline what might help a course more and stick to it.

[UchihaSarada]

Understandably, you can save in Bitcoin and when it gets to the bullish seasons, you would see some profits but, should it be in the bearish seasons, you would come by some loss and you’ll be damned should the purpose of your savings arrive in a bearish season. In such times, you would be out for the fiat alternative which you never gave much thoughts and it would be too late for that.

Investment in Bitcoin must be very long term from accumulation with time to holding for a long time to get profit.

I really disagree with you that it is only good to hold your bitcoin in bull market for profit while in bear market, holding bitcoin is not profitable. A bear market does not last for one, two or some months but it usually lasts about two years that is very long time for accumulation and holding. Depends on entry prices, buying bitcoins in bear market can result in good profit in short term but it's challenging to find such good entry prices and right time for purchases.

However it becomes more easily if you simply purchase bitcoins by Dollar Cost Averaging and with about 24 months of bear market, you have more than enough time to prepare investment capital for your purchases, more than one purchase.

[Publictalk792]

Depending on the purpose or potential use case of these savings, one might prove more useful than the other.

Understandably, you can save in Bitcoin and when it gets to the bullish seasons, you would see some profits but, should it be in the bearish seasons, you would come by some loss and you’ll be damned should the purpose of your savings arrive in a bearish season. In such times, you would be out for the fiat alternative which you never gave much thoughts and it would be too late for that.

They both do serve some purpose and it’s left for you to outline what might help a course more and stick to it.

That is great way to look at risk of putting your money in fast hanging asset like Bitcoin as savings, especially of money you may need soon, since although saving in Bitcoin can earn you huge profits in bullish periods, it can also earn you huge losses in bearish periods, which is big problem when you need money at the time market is low. This shows that best choice between Bitcoin and stable fiat money is based on reason for savings. Money that you need in near future is safer in fiat, which is steady, while money that you want to spend in long term is better in Bitcoin, where you can handle highs and lows, meaning most sensible decision is to use both depending on time when you want to spend money.

[Razmirraz]

Snip

Saving fiat is never an option once you know about Bitcoin because you can’t afford to lose some money in value while the number are still counting. Banks can offer you a good percentage rate to invest with them, but the money will lose its value over time due to inflation; the money you will have in your account will not keep its value because you can afford to buy what the money can buy when you save the money with your bank.
Instead if wasting time, it is better to buy and hold Bitcoin for long term, you will be guaranteed of your profit and still maintain the value of your assets.

If we have an attractive alternative as a store of value and a hedge against inflation, why still adopt the old way (saving money in the bank) which is full of risks and can also reduce the value of money over time. Bitcoin has been at the forefront as one of the reliable investment assets due to its potential for significant value growth in the long term. Its limited quantity (only 21 million coins) makes it a very profitable investment in the long term because its scarcity can increase its value over time, especially if demand continues to increase.

Bitcoin decentralized nature is also one of its advantages because no single party has full control over its network, such as being unable to be controlled by governments or central banks, making it more resistant to inflation and manipulation. I also have nothing against anyone who still keeps money in the bank, but the amount must be in accordance with the needs required every week or month, this strategy also makes it easier for each individual when making small transactions or urgent expenses without having to disrupt investments.

[MusaPk]

Emergency funds should be kept in the bank or wherever you can have it accessed quickly and easily. Because we'll need that for those situations that we are not expecting. It's different from holding Bitcoin, the mistake of what others do is they're putting their savings in Bitcoin as an investment and when emergencies come, even if they're at losses they have no choice but to sell the holdings they hold. That's why we have to take it into account of having still those emergency funds that we'll likely going to save us in those important times.

If you are investing in Bitcoin then our income must have three breakdowns i.e. for daily living, emergency funds and discretionary income for investing in Bitcoin. To get good return from Bitcoin, we need to invest regularly and for longer duration like 4 years or more. If we don't have our emergency funds in place then we may cash out our Bitcoins in case of emergency. Emergency funds must be readily available for our usage like they must be in our bank account or available in form of cash.     

[icebar]

Fiat loses value in the long run due to inflation where bitcoin demand increases in the long run, resulting in the price of Bitcoin increasing as we know the supply of Bitcoin is limited. The government has control over fiat they can increase inflation in the market by printing Fiat money as they wish. Bitcoin is the only decentralized coin that has no regulator. Governments cannot exert any influence on it. Bitcoin transactions can be made without the help of any bank or anyone else. There is transparency in the transactions. If someone wants, he will get the opportunity to deposit as much money as possible in Bitcoin gradually, according to his convenience, which can make him a large Bitcoin holder. Though Fiat money is suitable for short-term holding, Bitcoin is the best investment for long-term, which can provide returns higher than any other asset.

[Daniel91]

In fact, savings account interest rates at banks have become so low, much lower than inflation, that savers are literally losing money by keeping it in a bank account. More and more people are starting to realize this, so they are investing money from bank accounts through brokers into stocks, bonds, ETFs, crypto, etc. Of course, the possibility of higher returns always comes with much greater potential risk, such as investing in Bitcoin or crypto. Everyone must make such decisions for themselves and take responsibility for their financial choices.

[gibrab16]

Saving in a bank means slow loss to inflation. BTC has a fixed supply and can’t be printed. Short-term volatility doesn’t matter if your goal is long-term value preservation. Self-custody > trusting banks.

[Juicyhome]

In fact, savings account interest rates at banks have become so low, much lower than inflation, that savers are literally losing money by keeping it in a bank account. More and more people are starting to realize this, so they are investing money from bank accounts through brokers into stocks, bonds, ETFs, crypto, etc. Of course, the possibility of higher returns always comes with much greater potential risk, such as investing in Bitcoin or crypto. Everyone must make such decisions for themselves and take responsibility for their financial choices.

All are risky, saving in the bank is a no no for me, have tried crypto and bank savings, I preferred crypto savings than to save in a bank, the bank deduct hidden charges without explanation,but in Bitcoin investment if your saving is reducing you will know because of the current price of Bitcoin. The advantage of saving in Bitcoin is that wen the price goes up ,you earn more but in bank you gain nothing in savings rather than hidden charges. No interest for keeping money in your account for long, but in Bitcoin if you hold for long,you will gain more. That's why I preferred crypto savings and bank savings. When you want to withdraw in the bank, they will stress the hell out of you,but in Bitcoin, you can withdraw anytime you wish.

[Shishir99]

I don't even want to take a look at any analysis. I would choose savings in Bitcoin without any hesitation. Inflation in my country is terrible, and it could rise to 100% in two years. If I consider the long term, it could increase by up to 300% in the next ten years. I believe Bitcoin will yield a significant return over the next ten years. Even if it doesn't give me 2x or 3x, it won't let me go down because of inflation. Even if Bitcoin investment isn't an option for me, I would invest elsewhere, such as in gold or land, rather than keeping my money in fiat. At least that's better if someone wants to fight inflation.

[Mpamaegbu]

I'm curious who don't know about Bitcoin these days , even they didn't invest in Bitcoin, but they know if Bitcoin price is high and have a possibility to rise.

Your generalization cuts someone I know out. Dude knows about Bitcoin but doesn't believe investing in it is worth it. Yeah, knowing and investing are two different things but what do we say of someone with that awareness who doesn't believe it can make them ROI? If anyone knows about a project and doesn't invest in it, it simply means they don't trust the project with their money. That's where my friend belongs. So, for those who have that same mindset, their knowing of Bitcoin is inconsequential. For me, I count such people the same way I count those who've zero knowledge of it.

The industry needs action, not mere words.

[ndutndut]

Emergency funds should be kept in the bank or wherever you can have it accessed quickly and easily. Because we'll need that for those situations that we are not expecting. It's different from holding Bitcoin, the mistake of what others do is they're putting their savings in Bitcoin as an investment and when emergencies come, even if they're at losses they have no choice but to sell the holdings they hold. That's why we have to take it into account of having still those emergency funds that we'll likely going to save us in those important times.

If you are investing in Bitcoin then our income must have three breakdowns i.e. for daily living, emergency funds and discretionary income for investing in Bitcoin. To get good return from Bitcoin, we need to invest regularly and for longer duration like 4 years or more. If we don't have our emergency funds in place then we may cash out our Bitcoins in case of emergency. Emergency funds must be readily available for our usage like they must be in our bank account or available in form of cash.     

What you say is true. Every income should be allocated accordingly that's the essence of good financial management. So when you receive your income or salary you can allocate your money wisely.

Even if you only have one income you should be able to divide it into three categories basic needs, emergency funds, and investments. However when it comes to saving for an emergency fund, everyone is different. Essentially an emergency fund is for urgent needs when something happens, so it can be easily accessed. Personally I don't keep my emergency money in a bank I prefer to keep it in gold, because gold is easy to sell in my area and its price tends to be stable.

[Rockstarguy]

I don't even want to take a look at any analysis. I would choose savings in Bitcoin without any hesitation. Inflation in my country is terrible, and it could rise to 100% in two years. If I consider the long term, it could increase by up to 300% in the next ten years. I believe Bitcoin will yield a significant return over the next ten years. Even if it doesn't give me 2x or 3x, it won't let me go down because of inflation. Even if Bitcoin investment isn't an option for me, I would invest elsewhere, such as in gold or land, rather than keeping my money in fiat. At least that's better if someone wants to fight inflation.

Keeping money in fiat is a total lose because inflation is always there affecting the value of fiat, their is no way you will be having fiat that you will be able to escape from inflation.

People with no understanding will always keep fiat in the bank thinking it is secure in their hands and they are also free from volatility seeing the figures of their money being the same not knowing money is just losing value without them knowing. No one who understand what fiat is and what bitcoin is will choose to keep fiat for a longtime because it is a total waste of money.

[Aanuoluwatofunmi]

If we cant compare fiat to bitcoin, then we should know that having money in local currency is not as lucrative as when we have it in bitcoin, because the value of our money has the tendencies of appreciating in value with time, while in fiat, it mostly to depreciates, because of the incidence of inflation over the centralized economy in which we operates in using our fiat currency, maybe this is why bitcoin is a global and a trending profitable asset.

[Z_MBFM]

Fiat losses her purchasing power  overtime if you keep it in the bank due to inflation. Bitcoin is the opposite to fiat as it's a store of value overtime. You need to save the value of your sweat by investing it into bitcoin instead of giving it to the bank for them to do business with it and still condition you on how to withdraw your money. Wealthy people invest their money in order to generate profits.

It is true that Fiat loses its purchasing power because of constant inflation. But Fiat does not fall large amounts of value as quickly as Bitcoin. On the other hand, even if the price of Bitcoin drops significantly, it can recover, but if fiat money inflates, that value cannot be recovered. Therefore, everyone saves for the long term, in which case Bitcoin can be the best choice for savings.  In terms of savings, Bitcoin will be an excellent investment in addition to savings.

[Shishir99]

If we cant compare fiat to bitcoin, then we should know that having money in local currency is not as lucrative as when we have it in bitcoin, because the value of our money has the tendencies of appreciating in value with time, while in fiat, it mostly to depreciates, because of the incidence of inflation over the centralized economy in which we operates in using our fiat currency, maybe this is why bitcoin is a global and a trending profitable asset.

If you ask the same thing to a person who knows nothing about Bitcoin, they will ask you what you are talking about. The reality is, 70% people still believe in fiat, and they keep their savings in fiat. The banks are releasing new schemes every year and offering high interest on savings plans. People are keeping their money in banks because they think they can double their money within a few years, which actually happens, but their money lose the value.

I would keep my money in the strongest currency I can, which is Bitcoin. I think people will slowly move to Bitcoin as we go. People will learn about Bitcoin and they will realize that Bitcoin is better than fiat.

[Cookdata]

It is true that Fiat loses its purchasing power because of constant inflation. But Fiat does not fall large amounts of value as quickly as Bitcoin. On the other hand, even if the price of Bitcoin drops significantly, it can recover, but if fiat money inflates, that value cannot be recovered. Therefore, everyone saves for the long term, in which case Bitcoin can be the best choice for savings.  In terms of savings, Bitcoin will be an excellent investment in addition to savings.

There is always this misconception of fiat and Bitcoin as a store of value. I don't think money has ever been define as a store of value but as means of exchange. The government failed to keep it that way and that's why they embrace Gold as number 1 store of value, they know it's a failed experience but they can't admit that fiat is not a store of value, as long as money exist inflation will be there like mad, you can't print money out of nowhere and expect value be there.

There are many features of Bitcoin that beat fiat many times and are not even close in similarities. Comparison of Bitcoin should be with other government regulated assets they use as a store of value just like Gold. If you say Bitcoin has volatility, then you have not seen some how volatile the stock markets and other financial markets has been, Bitcoin year to date is bigger than some stocks, some are -80% down.

[puloweh555]

Fiat losses her purchasing power  overtime if you keep it in the bank due to inflation. Bitcoin is the opposite to fiat as it's a store of value overtime. You need to save the value of your sweat by investing it into bitcoin instead of giving it to the bank for them to do business with it and still condition you on how to withdraw your money. Wealthy people invest their money in order to generate profits.

It is true that Fiat loses its purchasing power because of constant inflation. But Fiat does not fall large amounts of value as quickly as Bitcoin. On the other hand, even if the price of Bitcoin drops significantly, it can recover, but if fiat money inflates, that value cannot be recovered. Therefore, everyone saves for the long term, in which case Bitcoin can be the best choice for savings.  In terms of savings, Bitcoin will be an excellent investment in addition to savings.

Essentially saving in a bank will yield nothing but loss of value. The banking system will not help you achieve financial freedom in the future, so saving in a bank is a major mistake in our financial decision-making.

If you truly want to save for the long term, saving in Bitcoin is the best option and can even help you achieve financial freedom. Banks are inseparable from our lives because we need them in our daily lives. So use banks only for transactions. Keep enough money in the bank, and divert the rest of your savings to Bitcoin and gold.