Savings in Bitcoin vs Saving Money in a Bank

[Somto9Light]

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.

[DPHOR]

You can send this to a no coiner and say nothing 
If they can not recognize the difference between investing on Bitcoin and holding traditional fiat, then I don't have to convince them that Bitcoin is more rewarding. 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.

For sure there are is big changes and difference and those who are still doubting bitcoin can easily go through that comparism so that they could see what they are missing since they aren't investing to bitcoin, and of course I can't hold fiat on account why I have where to go dump them on digital currency which is solidly known as bitcoin.  Bitcoin is a major valuable digital currency that is mostly regarded as digital gold, currently it is overly taken as a safe haven since inflation is really affecting the traditional banking system as the only thing that could help more is bitcoin as someone asset wouldn't depreciates and lose value.

[Porfirii]

You can send this to a no coiner and say nothing  
If they can not recognize the difference between investing on Bitcoin and holding traditional fiat, then I don't have to convince them that Bitcoin is more rewarding. 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.

For sure there are is big changes and difference and those who are still doubting bitcoin can easily go through that comparism so that they could see what they are missing since they aren't investing to bitcoin, and of course I can't hold fiat on account why I have where to go dump them on digital currency which is solidly known as bitcoin.  Bitcoin is a major valuable digital currency that is mostly regarded as digital gold, currently it is overly taken as a safe haven since inflation is really affecting the traditional banking system as the only thing that could help more is bitcoin as someone asset wouldn't depreciates and lose value.

As a Bitcoin enthusiast I must agree, but as a critical thinker I can't help but think that we are not free from possible catastrophic events, black swans that could make the price go down. While black swans in traditional banking are still possible, the risk in the case of Bitcoin is way higher, IMHO. But also the reward, of course.

[Alpha Marine]

When it comes to saving in bitcoin or a Bank/fiat, it's more than how much ROI you can get after a certain period of time. If you look at that alone, there are investments in fiat that you can make more money from than in Bitcoin. Don't get me wrong, the ROI is a good incentive, but it's not just that.
It's also about the fact that you have total control of your money. You don't need to take permission from anybody, and nobody has to know how much you invest.

Investing with a bank is relatively low risk when compared to Bitcoin in terms of losing your investment. Within the space of a year, you can get 20% of your investment with a bank, but within a year in bitcoin your investment might be 20% lower, even though there is a chance it might be higher than your initial money.
Bitcoin is longer term while Bank is more os a short term, even though they have long term investments as well.
It's easier to simply invest in Bitcoin because with the bank, even if its a long term investment, you can't take it whenever you want, if you do, you will have to do so for a fee or a penalty for breaking the contract. Its not like that with Bitcoin.

[GeorgeJohn]

Anywhere you saved your money in the two options you mentioned, they're all fine, the reason been that if you save your fund's in bitcoin, their's every tendency that during the time you may need it, the price in bitcoin maybe different from what you saved, it may neither decreases or increases, this two things one most take place if you invest in Bitcoin

Why if you invest in traditional currency, only thing that will happen to it, is that inflation may make the money to lose value, why the specific amount invested will remain the same if I'm not mistaken. Because in this current dispensations, currencies depreciate in value, and what $1 can afford today in next 3 years $1 can't afford it any more...so it's a work of inflation.

[Fara Chan]

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.

People who understand Bitcoin will certainly never regret saving Bitcoin to secure a brighter future, as it is part of the hope of many. However, we need to understand the fundamental differences between saving money in a bank and saving Bitcoin in our own wallets. Most banks cannot disburse large sums of money to one person at a time, as we can withdraw tens of billions or even hundreds of billions in a matter of minutes. That is the basic difference that is very visible in the two different savings because in Bitcoin everyone can sell it without any particular restrictions as long as there are buyers in the market so that Bitcoin is freer from things that we think are very annoying when we need money as soon as possible within a certain time.

[laijsica]

You can send this to a no coiner and say nothing  
If they can not recognize the difference between investing on Bitcoin and holding traditional fiat, then I don't have to convince them that Bitcoin is more rewarding. 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.

For sure there are is big changes and difference and those who are still doubting bitcoin can easily go through that comparism so that they could see what they are missing since they aren't investing to bitcoin, and of course I can't hold fiat on account why I have where to go dump them on digital currency which is solidly known as bitcoin.  Bitcoin is a major valuable digital currency that is mostly regarded as digital gold, currently it is overly taken as a safe haven since inflation is really affecting the traditional banking system as the only thing that could help more is bitcoin as someone asset wouldn't depreciates and lose value.

As a Bitcoin enthusiast I must agree, but as a critical thinker I can't help but think that we are not free from possible catastrophic events, black swans that could make the price go down. While black swans in traditional banking are still possible, the risk in the case of Bitcoin is way higher, IMHO. But also the reward, of course.

The traditional banking system will have limitations because it is centrally controlled. Even though you have cash, the state financial system is tying you down in every financial activity. If you can prepare for the possibility of a catastrophic situation and apply a strategy to maintain a balance between real assets and digital assets, you can expand your wealth. Due to price volatility, the risk in Bitcoin is very high but the demand for this digital asset is increasing due to the potential high profits. Bitcoin adoption from the individual level to the institutional level is a silent revolution taking place in the expansion of the financial system of every countries.

[MisFoxie]

Many people wander which is most beneficial Saving in Bitcoin or Saving in traditional fiat currency in a bank. To explore it imagine you saving 100$ per day for 5 year in both BTC and the Fiat currency. Compare what outcome look like in both case.

You wrote $100 per day here but in the table below, you calculated the profits according to the per month as $300 for three months, savings means $100 per month, but here you assumed $100 per day, I guess that's a mistake you want to correct.

Thanks for pointing that out.
You are right that in introduction I wrote "$100 per day" but in comparison table I calculated based on $100 per month. That was a mistake I made while writing.Btw I corrected it now thanks to you.

I really like the idea and how you put it into this shape, which can really motivate someone to invest in Bitcoin instead of keeping it in banks and let them invest it in bitcoins to make more money and then give you the amount you chose at the start, like they take your money to make more profit while give you almost nothing in compared to it is not right.

I'm glad you like the idea about this comparison. My goal was how  savings in Bitcoin vs Saving in Fiat can lead to different outcome, especially when you DCA consistently over time. Like you said bank earn from our deposits and give us very little back. And Bitcoin give us a chance to benifit directly from our asset's long term investment.

[amihada]

Many people wander which is most beneficial Saving in Bitcoin or Saving in traditional fiat currency in a bank. To explore it imagine you saving 100$ per month for 5 year in both BTC and the Fiat currency. Compare what outcome look like in both case.

The difference between the two is very significant when viewed in terms of potential profits and risks. I don't want to detail all the risks associated with investing in Bitcoin because we all believe that in the long term, the value of Bitcoin will continue to rise and has the potential to generate large profits. The comparison of the results obtained in five years between saving in Bitcoin and saving in traditional fiat currency in a bank is also like heaven and earth.

Now, let's assume that if the Bitcoin price increases by 10% per year, your investment would be worth approximately $7,7k. If the interest rate is only 4% per year, your fiat currency savings in the bank would be worth approximately $6,5k. (Please correct me if I'm calculating the numbers incorrectly.) Although saving in traditional fiat currencies in banks is more stable, it has low returns and also carries the risk of inflation and currency depreciation. Other risks also need to be considered when saving money in a bank, such as administration fees that drain your balance, the potential for bank bankruptcy, balance theft, and a lack of growth potential compared to other investments.

[The Cryptovator]

I'm glad you like the idea about this comparison. My goal was how  savings in Bitcoin vs Saving in Fiat can lead to different outcome, especially when you DCA consistently over time. Like you said bank earn from our deposits and give us very little back. And Bitcoin give us a chance to benifit directly from our asset's long term investment.

Even Bitcoin is a better investment option, but still I will not prefer to put all of the savings into Bitcoin. Because we need cash in emergency situations; if the Bitcoin price dumps hard, then for survival, you need cash. It's reality; we can't ignore the truth. When you invest in Bitcoin, then you have to hold it longer. Unless you can forget about Bitcoin investment for a couple of years, it is hard to get a higher return from Bitcoin. So we also need traditional fiat investments for emergency situations.

Investing in Bitcoin depends on many circumstances, especially your financial conditions. If you are financially stable, you may keep accumulating Bitcoin for a long time with big targets. Your investment would increase a couple of times from your initial investment. I will prefer investing in a part of your savings through the DCA strategy, not all the savings, though traditional investment won't give you a higher return. Let's say you have $100 savings per month after spending all the family costs. I would prefer to invest $60 in Bitcoin and $40 in traditional banks for emergency situations. So even if the market goes dump for years, you will not have to touch your Bitcoin. Instead, you can keep accumulation at a cheaper price.

[SquirrelJulietGarden]

Even Bitcoin is a better investment option, but still I will not prefer to put all of the savings into Bitcoin. Because we need cash in emergency situations; if the Bitcoin price dumps hard, then for survival, you need cash. It's reality; we can't ignore the truth. When you invest in Bitcoin, then you have to hold it longer. Unless you can forget about Bitcoin investment for a couple of years, it is hard to get a higher return from Bitcoin. So we also need traditional fiat investments for emergency situations.

Cash still has best liquidity pratically and we need to have some cash to use. Money in savings must be used for different purposes, spendings, emergency and for investment. With investment, diversiification is good for risk reduction or minimization and it's only dangerous to diversify your money into altcoins. If your capital diversitication is to Bitcoin, gold, silver or S&P500 for example, it's good.

By having money in emergency fund in bank account or in cash, we will have less risk of unwanted selling of our bitcoins. It will help our holding more strongly with time and it increases chance of getting profit by holding bitcoin a long time.

[cr1776]

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.

This is a great point.  In the US and other "stable" currencies managed by central banks, they lose about 1/2 their purchasing power in 30 years.  Bitcoin is the reverse even if it didn't appreciate. 

[Foircia]

Hope we can have a chart about saving money in a bank, too. 

[Youngrebel]

We can say saving  in Bitcoin is wealth accumulation overtime . Whereas the normal traditional banking savings is a regular money keeping and empowering others. This is true in the sense that the moneys kept in innyhe bank are used by the bankers to create wealth for the bankers in the bank.  They give it for loans and use it for other investments when there is an opportunity. While the original owners of these money are left without any substantial benefits from the returns of the the money they have banked and been used. Sometimes there are even charges that are been deducted from your investment as regulatory charges. Bitcoin on the other hand is a steady income increase pending the market price at the moment.  It increases with time as market goes up. Thr only thing is knowledge barrier and risk management level that makes people to keep money onntjeee different places. An individual with mo knowledge of sitcom would not have the taughts of safe keeping money in Bitcoin rather he'll choose his traditional banking system.

[yixichloro2xx]

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.

People who understand Bitcoin will certainly never regret saving Bitcoin to secure a brighter future, as it is part of the hope of many. However, we need to understand the fundamental differences between saving money in a bank and saving Bitcoin in our own wallets. Most banks cannot disburse large sums of money to one person at a time, as we can withdraw tens of billions or even hundreds of billions in a matter of minutes. That is the basic difference that is very visible in the two different savings because in Bitcoin everyone can sell it without any particular restrictions as long as there are buyers in the market so that Bitcoin is freer from things that we think are very annoying when we need money as soon as possible within a certain time.

‎Bitcoin provide easy access to ones savings. With self custody all the control are  in your hands, no need to follow any rules and regulations or limits. Moreover your savings appreciate in a long term. Banks operates base on the rules and regulations given to them by the governments they collect tax, always give withdrawal limits to their customers.So it is that freedom that people see in Bitcoin is what give them interest to save in it.

[Hazink]

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.

To add to this: banks convince you to store your money with them in exchange for security and interest, which is too low compared to what inflation will do with your savings.

Only the money meant for spending is supposed to be sat in your accounts and the ones reserved for emergencies as well. The rest should be invested on something which have a bright future of given back good return of investment instead of stacking it where it will be same volume, but value reduced beyond expectation.

[BABY SHOES]

I'm glad you like the idea about this comparison. My goal was how  savings in Bitcoin vs Saving in Fiat can lead to different outcome, especially when you DCA consistently over time. Like you said bank earn from our deposits and give us very little back. And Bitcoin give us a chance to benifit directly from our asset's long term investment.

Even Bitcoin is a better investment option, but still I will not prefer to put all of the savings into Bitcoin. Because we need cash in emergency situations; if the Bitcoin price dumps hard, then for survival, you need cash. It's reality; we can't ignore the truth. When you invest in Bitcoin, then you have to hold it longer. Unless you can forget about Bitcoin investment for a couple of years, it is hard to get a higher return from Bitcoin. So we also need traditional fiat investments for emergency situations.

Investing in Bitcoin depends on many circumstances, especially your financial conditions. If you are financially stable, you may keep accumulating Bitcoin for a long time with big targets. Your investment would increase a couple of times from your initial investment. I will prefer investing in a part of your savings through the DCA strategy, not all the savings, though traditional investment won't give you a higher return. Let's say you have $100 savings per month after spending all the family costs. I would prefer to invest $60 in Bitcoin and $40 in traditional banks for emergency situations. So even if the market goes dump for years, you will not have to touch your Bitcoin. Instead, you can keep accumulation at a cheaper price.

I also don't dare to keep all savings in bitcoin, for me it's a bit crazy if bitcoin is the only value that must be saved, but fiat money must be in the account to meet daily needs and emergency funds there while bitcoin is only for the long term, so at least 50% is kept there the rest is in fiat.

What I do when I receive a monthly salary ... fulfill basic needs first after everything is fulfilled if there is a remainder then it will be invested in bitcoin and it is not big but at least this accumulation continues even though it is only $50 per month.

Then I find another source of income, then that source is often allocated to bitcoin because other needs have been met from the monthly salary.

[AakZaki]

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.

But wealthy people already have careful calculations before doing that, including still having money in their bank accounts. Because it would be something ridiculous if they did not have money in their bank account or kept at home. Basically, prioritizing only investment is far more risky, because as we know Bitcoin is very volatile. Can you imagine if all the money were invested into Bitcoin and then the price dropped sharply?

Personally, I do not always agree with the statement that saving in Bitcoin is the right choice. I will always do strict calculations first before investing in Bitcoin or anything else. At a minimum, there should be five times a salary in a bank account or kept at home as emergency funds, and at least two times a salary for monthly needs. After that is fulfilled, only then should investment be considered.

[Awaklara]

‎Bitcoin provide easy access to ones savings. With self custody all the control are  in your hands, no need to follow any rules and regulations or limits. Moreover your savings appreciate in a long term. Banks operates base on the rules and regulations given to them by the governments they collect tax, always give withdrawal limits to their customers.So it is that freedom that people see in Bitcoin is what give them interest to save in it.

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.

[macson]

Even Bitcoin is a better investment option, but still I will not prefer to put all of the savings into Bitcoin. Because we need cash in emergency situations; if the Bitcoin price dumps hard, then for survival, you need cash. It's reality; we can't ignore the truth. When you invest in Bitcoin, then you have to hold it longer. Unless you can forget about Bitcoin investment for a couple of years, it is hard to get a higher return from Bitcoin. So we also need traditional fiat investments for emergency situations.
-.-

We need to take into consideration when we want to put money into Bitcoin. I agree that it's not necessary to invest our entire savings in Bitcoin, as we may need cash quickly for emergencies or other needs. So we only need to invest the money we've prepared for investment, and then set aside some money for an emergency that can be used immediately when needed. So when we experience any obstacle or problem, we don't need to sell our bitcoin investment immediately, we can use the emergency fund to cover the need and then keep our investment.