Savings in Bitcoin vs Saving Money in a Bank

[Bobrox]

Nice comparison OP saving in bitcoin vs saving money in the bank.

Actually all your example about saving money in bitcoin trough several years ago and you don't use comparison for last several month ago how assets increasing or get decreasing. Firstly bitcoin price fluactive and can't guarantee will earn much profitable for long term, many people know well about bitcoin and not fully all out for saving in bitcoin than priority for saving money in the bank.

Maybe if you can make comparison for last two months ago for bitcoin price above $100k and right now under $90k many people get worry for saving money in bitcoin and prefer for saving in the bank. Lets make fairly advantage when saving money in bitcoin and the advantage side to make all people already if getting risk later.

[Marvelockg]

. Maybe you can spend some time to explain what is very complex to someone that wants to know about that thing, but I will not spare a minute to convince a no coiner that Bitcoin is the safe heaven, perhaps this is not rocket science.

The analogy should rather be that for bitcoin, what you're doing is that you're investing while for banks, what you're doing is that you're saving in the context of putting in a fixed amount in the bank and after a certain period of time, after you must have removed the effect of inflation relative to the time you've kept the money in the bank, what you have left is relatively same as the initially deposited amount. Same can not be the same for bitcoin that though it's a volatile asset gives a sure assurance of hope that there's going to be a level of returns on investment from what you've invested.

Saving is a term that's actually synonymous to the banks while by the nature of bitcoin, what you're actually doing is investing and not saving.

[tabas]

It would have been interesting if you proved that saving in fiat is better and more profitable. We all know bitcoin gives much higher returns.

I think that there is no need for that because we know that due to inflation, the purchasing power of fiat is becoming lesser. Whilst for Bitcoin, it's a deflationary asset and that's designed to increase its value over the period of time. There's no doubt that the return that bitcoin gives is incomparable by just saving money. Even fiat will be put in a high yield savings account, that's not going to be enough if it's about the profit that it can possess against to how much we can possibly get by investing in bitcoin.

[Peanutswar]

Seems it inspires me to create a spreadsheet about my investment journey because last year it was too bad and just recently get a good gains with the market, for me its ideal to store your funds into both ways. If you are active in saving with the banks it will gives you a percentage for about i guess 1-3% APY which is too much low imagine the inflation do always rise up every year so the value of your money is as is but the price of things you need into a daily basis requires more so now just ideal saving money in the bank is with the use of the emergency funds only for unexpected things happen. Now why invest with the bitcoin or lets say general an investment because your money are continously growing for time to time until you got your ROI and make a passive income with you by that you can make another money generator. This is the reason why we keep saying let the money make more money to you and not let the you make the money.

[Y3shot]

Bitcoin is volatile and that volatile can work for you or against you. Don't invest money you can't afford to keep untouched for years. My genuine lesson keep fiat savings for emergency use and portion of fund you can hold for long term invest in BTC.

It can only be against you ignore your intentions are not pure, if you are only investing to make quick money. So far as you are interested in hodling and your target is just to hodl you will definitely make profit from the volatility of Bitcoin.  Lack of understanding is one of the problems people normally have in investing bitcoin.  If you dont understand understand the volatility of Bitcoin which many people tend to predict while they invest in Bitcoin, and not understanding bitcoin price one have no choice to sell because of fear of bitcoin constantly going down.

With understanding and being patient to hodl Bitcoin till the end you will definitely make good profits in investing bitcoin,  everything depends on the level of understanding.

[Crypt0Gore]

Flat will always depreciate because of inflation, I will keep using Fiat because I can't cancel it for life and it is also the only way to buy food and other things here, I really can't do without fiat but what I will never do is keep a large amount of money in the bank, doing what? I would rather invest it all in Bitcoin.

The only money I can leave in the bank is money that I will spend in a week or maximum of a month, Bitcoin is very good at keeping store of value and fiat is very bad for this.

[Baki202]

It would have been interesting if you proved that saving in fiat is better and more profitable. We all know bitcoin gives much higher returns.

I think that there is no need for that because we know that due to inflation, the purchasing power of fiat is becoming lesser. Whilst for Bitcoin, it's a deflationary asset and that's designed to increase its value over the period of time. There's no doubt that the return that bitcoin gives is incomparable by just saving money. Even fiat will be put in a high yield savings account, that's not going to be enough if it's about the profit that it can possess against to how much we can possibly get by investing in bitcoin.

Inflation have been one of the discouraging factors that have made people reduce keeping money in fiat and this is because  the price of things have been affecting the value of money and even if it is saved in a fixed deposit it might not bring you the kind of profit you will get when you invest in bitcoin even if this is about what everyone wants there is still a better way to make use of money than just saving it in the bank.

And since bitcoin is not affected by inflation that makes it one of the best factors to consider that will support your decision.
And now one of the things we are going to be looking at this period is how double our money through investment and all, and that is one of the reasons why we are advised to invest in bitcoin and other altcoins, because one of the was we can beat inflation is through investment getting our money doubled to solve the inflation issue we find our self currently. Bitcoin is like the light in a tunnel.

[Lucius]

~snip~
That difference between $13,000 and $8,000 is huge, but keep in mind, it is not a sure thing.  The strategy worked out because Bitcoin was mostly on the rise during those five years.  So, Bitcoin can be a much better long-term investment, but only if you can stomach the risk.

And the fact is that at least 95% of people in the world don't have the stomach for such a risk, so they would rather keep their money in the bank and earn interest that will be lower than inflation. A few years ago, my government figured out how to get at least part of the money from citizens that they keep in banks by starting to issue bonds and treasury bills, and since then hundreds of millions of euros have been going in that direction, and when people are asked why they invest in something that doesn't really bring them profit, they say that they have nothing else to invest in.

It just goes to show that people are so influenced by their governments that they will give them their money and get back even less than they invested, if we take inflation into account.

[@nn@_pen9]

‎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.

Yes, for the long term, Bitcoin is indeed our preferred choice over saving fiat money. We all know that fiat money loses its value over time due to inflation. which is the process in which the purchasing power of money decreases and Inflation occurs when the prices of goods rise, making the same money able to buy less. Overall, Bitcoin could be an attractive option to combat fiat inflation, with its increasing development and adoption, and its limited supply, potentially driving long-term stability and price growth. This is similar to gold, which is also used as an inflation hedge.

[Yablee0]

Their is no possible way you can compare this two because saving in bitcoin is far more better than saving in our local bank account, however since inflation has been another means of diminishing the value of our local currencies (fiat) so keeping it in the bank is just an opportunity of making it take hold very easily, aside that what about the unnecessary charges that normally occur, you keep your funds in the bank account after some time you start receiving some unusual debiting as a result of service charges and all that, but when saving in bitcoin that alone is an investment on is own because bitcoin being a stuff that appreciates in value over time so keeping your funds or storing in bitcoin is a plus up to you by  increasing over time and it's on your advantage because after some couple of years you will see a tangible amount of profit you will realize.

Furthermore, even though bitcoin can be very volatile or flautrating at times regardless, is still far more better than saving your funds in the bank.

[POPOLUV]

This different is very clear here, for example if you buy a Bitcoin that what $500k and it to run within 4 -7 years, and you deposited $500k into your savings account within the range of 4- 7 years, looking at this two illustration that i have just started out right now, you will understand that Bitcoin do fluctuate and while saving account series of payments that Bank tag as bank charges, then looking at the years interval you understand that not matter how Bitcoin will fluctuate in parallel market, the profits will still bigger than that of your money saving in the bank. all newbies should always consider buying more Bitcoin once they have discretionary income.

[suzanne5223]

Many people wander which is most beneficial Saving in Bitcoin or Saving in traditional fiat currency in a bank.

With the level of inflation and how the fiat currency is losing value every day, minimum wage is not increasing, and the price of things is going up. Any person who's still wondering which is more beneficial between saving in Bitcoin and saving in fiat currency is definitely not from this world because the institution sees the comparison and benefit of saving in BTC as the reason why they are using it to consolidate their fiat saving

[notocactus]

With the level of inflation and how the fiat currency is losing value every day, minimum wage is not increasing, and the price of things is going up. Any person who's still wondering which is more beneficial between saving in Bitcoin and saving in fiat currency is definitely not from this world because the institution sees the comparison and benefit of saving in BTC as the reason why they are using it to consolidate their fiat saving

It is about fiat currency inflation and a consequent declining purchase power. It is right and can not be declined as all foat currencies lose their purchase power with time because all governments and central banks print more money with time.

Nevertheless the OP concern is different, it is about difference of safety between storing fund in bank or in Bitcoin wallets. With banks, you must store your money in bank accounts and you will only be able to withdraw or use your money if banks approve your request. You can not control the bank decision on your request.

While it is very different with Bitcoin if you use non custodial wallets. You fully control your coins and can send it anytime to any Bitcoin address. It is freedom and complete control in your hands, not entire dependence like with banks.

[Franctoshi]

With the awareness that inflation is real, and knowing the fact that inflation reeps you off 5% -10% of your money yearly, it doesn't worth it storing your money in the bank with this information, whereas Bitcoin is deflationary and the value thus increases over time, therefore saving in Bitcoin is way better than saving in fiat currency because Bitcoin has a limited supply and you can't print more than 21m Bitcoin, it only 21m BTC that can everly exist. Just like shown in the picture below how fiat decrease in value against time.

Many people wander which is most beneficial Saving in Bitcoin or Saving in traditional fiat currency in a bank.

With the level of inflation and how the fiat currency is losing value every day, minimum wage is not increasing, and the price of things is going up. Any person who's still wondering which is more beneficial between saving in Bitcoin and saving in fiat currency is definitely not from this world because the institution sees the comparison and benefit of saving in BTC as the reason why they are using it to consolidate their fiat saving

[Cookdata]

Many people wander which is most beneficial Saving in Bitcoin or Saving in traditional fiat currency in a bank.

With the level of inflation and how the fiat currency is losing value every day, minimum wage is not increasing, and the price of things is going up. Any person who's still wondering which is more beneficial between saving in Bitcoin and saving in fiat currency is definitely not from this world because the institution sees the comparison and benefit of saving in BTC as the reason why they are using it to consolidate their fiat saving

I understand your message but increasing minimum wage will likely cause inflation because you are introducing more money into supply.

Here is a thing about the government, increasing minimum wage means more money will be available in supply so they use that excuse not to increase minimum wage, though there are some other reasons for it not been increase but that's the basis from government perspective but same government will increase supply of money from another angle and wouldn't think twice about the supply they just injected into the economy. I see that as a coward and wicked principle because it favour's them.

The government can print money all they like, they can increase supply monthly, weekly and yearly or decide to remove some from circulation. This is how they do their bidding under the watch of the central banks and commercial banks controlled by the government, that's how fiat lose its purchasing power each day.

[Faisal2202]

What I discovered: If someone saved 100$ per month regularly in Bitcoin for 5 year their total funding value would be approximately 13,000$. If they save same amount per month regularly for 5 years in fiat account they would roughly get 8000$ which is far less than BTC.

Bitcoin is volatile and that volatile can work for you or against you. Don't invest money you can't afford to keep untouched for years. My genuine lesson keep fiat savings for emergency use and portion of fund you can hold for long term invest in BTC.

This was helpful and you made good effort in making this post, I appreciate it and I can't agree more with you because more risk can bring more profit but at the same time it can bring more lose too, for example after 5 years if bitcoin price decreases or stays at a point you bought, then the profit will be nothing or you will be in lose.

Keeping money in fiat is necassary as emergency funds because they help us in extreme situations, and I have tried to keep some funds in fiat and in stable currency, but was never able to save and use them anyway hehe. But we have to maintain the balance so we won't be facing huge losses.

[AakZaki]

(...)

Bitcoin is volatile and that volatile can work for you or against you. Don't invest money you can't afford to keep untouched for years. My genuine lesson keep fiat savings for emergency use and portion of fund you can hold for long term invest in BTC.

You need strategic calculations to execute a choice of both. Bitcoin's volatility can indeed provide great profits, but it can also make big losses for anyone who is not prepared.
This is where the role of Risk Management needs to be considered, because the principle of investing money that you can't afford to keep for a long time is one of the most important basics in managing risk, especially in assets like Bitcoin.

So separating the emergency fund in the form of fiat is also a very wise choice, because to ensure the urgent need does not depend on market conditions. Only then will funds that are completely free and will not be used in the near future will be used for Bitcoin investment for the long term.
This mindset is much healthier than chasing short term profits without the right strategy.

[tabas]

It would have been interesting if you proved that saving in fiat is better and more profitable. We all know bitcoin gives much higher returns.

I think that there is no need for that because we know that due to inflation, the purchasing power of fiat is becoming lesser. Whilst for Bitcoin, it's a deflationary asset and that's designed to increase its value over the period of time. There's no doubt that the return that bitcoin gives is incomparable by just saving money. Even fiat will be put in a high yield savings account, that's not going to be enough if it's about the profit that it can possess against to how much we can possibly get by investing in bitcoin.

Inflation have been one of the discouraging factors that have made people reduce keeping money in fiat and this is because  the price of things have been affecting the value of money and even if it is saved in a fixed deposit it might not bring you the kind of profit you will get when you invest in bitcoin even if this is about what everyone wants there is still a better way to make use of money than just saving it in the bank.

And since bitcoin is not affected by inflation that makes it one of the best factors to consider that will support your decision.
And now one of the things we are going to be looking at this period is how double our money through investment and all, and that is one of the reasons why we are advised to invest in bitcoin and other altcoins, because one of the was we can beat inflation is through investment getting our money doubled to solve the inflation issue we find our self currently. Bitcoin is like the light in a tunnel.

Investing in bitcoin is a hedge against inflation and that's why we're fortunate that even we're not so good in economics when we've first invested on it. There's a reason why we have been here and understood how it goes with that and thanks to Bitcoin that it automatically defeats inflation if you're an investor who's looking long term to it. But of course it is still volatile and price changes from time to time, only short termers won't see how beautifully it's made for beating inflation. As for altcoins, not all of them are designed the same way.

[Asuspawer09]

There are already a lot of discussion about this and for sure comparing Bitcoin and physical money or just putting your money on your traditional banks, clear winner might be Bitcoin since when it comes to investment I really think that Bitcoin is the best when it comes to investment and not really something that can be use as a digital currency, its more like a investment because of its structure having limited supply. Compared to physical money that supply is being control by the government, investing in physical money or just saving in the bank is going to eat up your money because of the inflation.

In the history Bitcoin market value is already skyrocket through the years so we can clearly see that it is going to make a huge profit compared to fiat money, but we still need to consider that it is cryptocurrency one of the riskiest investment that you could make because crypto market is probably the most volatile compared to other market, so profit is not always going to be guaranteed and not because we see historical evidence doesnt mean that you are going to make a guaranteed money, supply and demand on for example Bitcoin is still just demand if no one want to buy Bitcoin there will be no price on it, we dont know if a war started is Bitcoin still going to be what it was today? we never know price might drop to 10$ it is possible, not saying it's going to happen but it is possible at any moment.

[suzanne5223]

With the level of inflation and how the fiat currency is losing value every day, minimum wage is not increasing, and the price of things is going up. Any person who's still wondering which is more beneficial between saving in Bitcoin and saving in fiat currency is definitely not from this world because the institution sees the comparison and benefit of saving in BTC as the reason why they are using it to consolidate their fiat saving

It is about fiat currency inflation and a consequent declining purchase power. It is right and can not be declined as all foat currencies lose their purchase power with time because all governments and central banks print more money with time.

The inflation and the decline of the purchasing power will always happen due to the 2% inflation target that's widely adopted by all central banks, and Fed, which they claimed to maintain price stability, is harming the economy.
The funny thing is that they see the result, but still follow the 2% inflation practice due to how they were able to steal from us.

Nevertheless the OP concern is different, it is about difference of safety between storing fund in bank or in Bitcoin wallets.

I understand the OP's concern. I was just answering what s/he asked about people's stance between saving in BTC and fiat currency.