Savings in Bitcoin vs Saving Money in a Bank

[Powerjumboo]

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.

For better understanding I used 3 month otherwise Table would be three time longer. I calculate in every month 1st days BTC avarage price , Example 01 January 2021 price was high 29700 and low is 28700 so we use 29200 as an avarage price for calculation.  I Used USD for currency, you can use you own currency and i believe it would be the same. (Although bank has their own rules and regulations, taxes and other things that will make profit less)

Here is the table of data:

Code:

╭──────────────────────────┬──────────────────────────────────────────┬─────────────────────────────────────╮
│                          │              Invest in BTC               │             Invest in Fiat          │
├─────────────────────────────────────────────────────────────────────┼──────────────┬──────────────────────┤
│ Period                   │ BTC Price  │ BTC Brought  │ Investment $ │ Fiat Interest│ Balance + Interest   │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Jan–Mar 2021             │ 37,566.67  │ 0.007985803  │     300      │     2.76     │      302.76          │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Apr–Jun 2021             │ 51,166.67  │ 0.005863192  │     600      │    13.92     │      613.92          │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Jul–Sep 2021             │ 40,666.67  │ 0.007377049  │     900      │    33.72     │      933.72          │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Oct–Dec 2021             │ 55,333.33  │ 0.005421687  │    1,200     │    62.39     │     1,262.39         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Jan–Mar 2022             │ 43,000.00  │ 0.006976744  │    1,500     │   100.18     │     1,600.18         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Apr–Jun 2022             │ 38,333.33  │ 0.007826087  │    1,800     │   147.35     │     1,947.35         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Jul–Sep 2022             │ 20,883.33  │ 0.014365523  │    2,100     │   204.15     │     2,304.15         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Oct–Dec 2022             │ 18,917.33  │ 0.015858472  │    2,400     │   270.86     │     2,670.86         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Jan–Mar 2023             │ 22,723.33  │ 0.013202288  │    2,700     │   347.74     │     3,047.74         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Apr–Jun 2023             │ 28,956.67  │ 0.010360309  │    3,000     │   435.08     │     3,435.08         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Jul–Sep 2023             │ 27,366.67  │ 0.010962241  │    3,300     │   533.17     │     3,833.17         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Oct–Dec 2023             │ 38,200.00  │ 0.007853403  │    3,600     │   642.31     │     4,242.31         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Jan–Mar 2024             │ 48,650.00  │ 0.006166495  │    3,900     │   761.81     │     4,661.81         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Apr–Jun 2024             │ 66,433.33  │ 0.004515805  │    4,200     │   894.97     │     5,094.97         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Jul–Sep 2024             │ 62,133.33  │ 0.004828326  │    4,500     │  1,039.13    │     5,539.13         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Oct–Dec 2024             │ 70,000.00  │ 0.004285714  │    4,800     │  1,195.62    │     5,995.62         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Jan–Mar 2025             │ 93,433.33  │ 0.003210846  │    5,100     │  1,364.77    │     6,464.77         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Apr–Jun 2025             │ 94,333.33  │ 0.003180212  │    5,400     │  1,546.94    │     6,946.94         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Jul–Sep 2025             │109,666.67  │ 0.002735562  │    5,700     │  1,742.50    │     7,442.50         │
├──────────────────────────┼────────────┼──────────────┼──────────────┼──────────────┼──────────────────────┤
│ Oct–Dec 2025             │103,833.33  │ 0.002889246  │    6,000     │  1,951.81    │     7,951.81         │
╰──────────────────────────┴────────────┴──────────────┴──────────────┴──────────────┴──────────────────────╯

Total BTC accumulated: **0.14586 BTC** approximately 13,000$

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.

Of course, keeping money in Bitcoin is much more profitable than keeping money in the bank. As you have seen, no one calculates like this, if everyone calculated like this, then everyone would understand easily and would be more interested in keeping money in Bitcoin instead of keeping money in the bank. However, I am telling everyone who is interested in investing in Bitcoin to invest according to their ability because it is better to invest according to their ability. However, I am trying to invest something every month and I hope to plan that investment for the long term. Moreover, I do not like keeping money in the bank very much, I keep the expenses of my family and my wife and children and some other necessary expenses and deposit the remaining money in Bitcoin.

[Emmanuel9977]

Bitcoin is considered a risky investment. I would recommend saving money in a bank. However, with enough research, bitcoin can be a lucrative investment.

[Mr_Brilliant$]

I feel your definitely of saving matters.. yeah, we all know saving money in a bank mostly lends to loss of value with time..  Inflation will just keep eating it up, and let us be honest, the banking system is not designed to help anyone achieve financial freedom in the long run… So blindly saving in a bank for years might actually be a mistake…
But also like I said, motive matters a lot..  If you are saving for something short term, maybe rent, school fees, a business setup, or any of your near future goal, then I honestly would not advise putting that money into Bitcoin. That is not what Bitcoin is for…

Bitcoin should not be treated like a savings account..  It is a long term investment..  Mixing it with short term savings goals can be a wrong approach, making you sell at the wrong time, and blame the market..  So yeah, bank savings might be useful for short term plans to me, but Bitcoin is for long term investment which requires time..

[jcojci]

@OP provides a good example to get started with Bitcoin investing. People can adjust the money they can afford. Bitcoin is a risky investment but if people do their research and learn before starting, they can adapt to the current situation. The important thing here is that people know how much money they can afford to invest in Bitcoin.

They can start with a low investment and remain consistent to pass monthly for 5 years or more. They will be confused by price fluctuations because they buy Bitcoin according to their plan. It is DCA so they should allocate money monthly to buy Bitcoin.

But I prefer to have one more to invest, maybe it is not an investment but a savings in fiat. They can use their savings to cover urgent needs so they don't have to sell their Bitcoin if they need money because they have savings money that is ready to use.

[demonica]

And the things is, after 5 years,the value of your $100 will be lesser compared to the present year due to the inflation.
Compared to when you save it in Bitcoin, your fiat savings might be increasing but the value were also slowly decreasing. We can't really just keep saving on fiat for longer years then expect for us to be rich when we reach a certain year. Even if you save it in banks, the interest are lower compared to what you can get when you invest it rather in Bitcoin.

[Hazink]

Bitcoin is considered a risky investment. I would recommend saving money in a bank. However, with enough research, bitcoin can be a lucrative investment.

No investment is without risk. If you save in the bank you are at the risk of your money losing value while still maintaining the same figure (devaluation). If the money you want to save won't be used for the long term, then investing it in an asset like bitcoin is advisable as there is a possibility of you getting profit added to that investment more than your bank can ever reward you with.

[Mame89]

Bitcoin is considered a risky investment. I would recommend saving money in a bank. However, with enough research, bitcoin can be a lucrative investment.

No investment is without risk. If you save in the bank you are at the risk of your money losing value while still maintaining the same figure (devaluation). If the money you want to save won't be used for the long term, then investing it in an asset like bitcoin is advisable as there is a possibility of you getting profit added to that investment more than your bank can ever reward you with.

Absolutely. Nothing is risk free in life everything is full of risks even if the risks differ. However if you learn the fundamentals you can mitigate all risks. Investing is indeed risky but banks are riskier due to their poor systems even causing us to continually lose value. Fiat currencies are not suitable for long term savings. Furthermore when we talk about risk in business you also have risks. So with all risks you can minimize or prevent them by learning more deeply about your investments.

So you must have the mindset that banks are not a good place to save, especially for the long term. With this mindset you will seek other alternatives for storing your assets so you will learn them well. Changing this mindset is the same as changing your perspective on the benefits of banks and investments. Banks are only suitable for daily transactions but for long-term savings investments are a very good choice.

[NINI2501]

Bitcoin is considered a risky investment. I would recommend saving money in a bank. However, with enough research, bitcoin can be a lucrative investment.

No investment is without risk. If you save in the bank you are at the risk of your money losing value while still maintaining the same figure (devaluation). If the money you want to save won't be used for the long term, then investing it in an asset like bitcoin is advisable as there is a possibility of you getting profit added to that investment more than your bank can ever reward you with.

Absolutely. Nothing is risk free in life everything is full of risks even if the risks differ. However if you learn the fundamentals you can mitigate all risks. Investing is indeed risky but banks are riskier due to their poor systems even causing us to continually lose value. Fiat currencies are not suitable for long term savings. Furthermore when we talk about risk in business you also have risks. So with all risks you can minimize or prevent them by learning more deeply about your investments.

So you must have the mindset that banks are not a good place to save, especially for the long term. With this mindset you will seek other alternatives for storing your assets so you will learn them well. Changing this mindset is the same as changing your perspective on the benefits of banks and investments. Banks are only suitable for daily transactions but for long-term savings investments are a very good choice.

it is all about that mindset shift like you mentioned because most people were raised to believe that a savings account is the gold standard of financial responsibility, it takes a lot of research to unlearn those habits and realize that banks are basically just payment processors with a fancy building, i keep enough in the bank to cover my expenses for a few months but everything else goes into cold storage where no bank manager can touch it or devalue it

[Outhue]

Bitcoin is considered a risky investment. I would recommend saving money in a bank. However, with enough research, bitcoin can be a lucrative investment.

Good but not so great advice, maybe mediocre? Tell me how is your fiat currency performance since last year? Because mine keeps depreciating, I was able to evade the inflation because I store USD rather than my local money, and left a lot of my money in Bitcoin, even while the value is dropping I am still in big profit since $17,000 per Bitcoin.

Bitcoin is not stable coin, but my entry price makes me feel safer than ever, I am good with USD and Bitcoin, if I am spending or going to spend money is always when I swap part of my stable coin for Fiat, this strategy have never failed to work well for me since four years now, I am not against your advice totally, because what works for everyone is what they will talk about, this is my own strategy and I respect yours.

[As-Soon-As]

Look, if you calculate the average of what you are investing, then Bitcoin definitely plays the highest role. But I want to tell you that if you save Bitcoin for a long time, then you own as much Bitcoin as you hold, but if you deposit it in a local currency bank, then a third party has the power to control your money. So here too, Bitcoin plays a significant role, in the bank you usually get only a few percent interest per year, but if you calculate Bitcoin annually, then you can definitely get several times more benefits than the bank's interest. No matter how many times you compare it with the bank, Bitcoin is profitable and provides the highest security.