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.

[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.

[Agathamay]

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.

Crypto have come to stayed. There's no way fiat currency that will beat crypto definitely not in a 10 years to come. The only thing that will make one choose fiat currency over crypto is ignorance and not been properly hinted towards the crypto space. We know the gathering and what comes next when we choose crypto, it's not stable and save compare to fiat currency and its definitely filled with risks, but you do know the more risk the higher the rewards.

[Oshio-man]

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

You're right that bitcoin is a risk investment but is profitable both in short term investment and long term investment which is the reason many investors are adding bitcoin to their investment, you can save huge amount of funds in the bank because there is no fear of scammers but it will not increase higher to make the funds double in your bank account, but if you save huge amount of funds in bitcoin it will increase higher to make the funds double in your wallet, but very much easy for scammers to deceive you to have access to your coins, I can recommend someone to put huge amount of funds in the bank and put small amounts of funds in bitcoin .

[Mpamaegbu]

~

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...

I'm with you on that. I adopted that pattern in 2022 and it has been working fine for me too till date I either leave my money in Bitcoin or convert to a stable coin pending when I'm in need of fiat for expenses since my country isn't that big on Bitcoin option for payment. The little money I left as fiat in my bank before I came to this awareness and knowledge dipped and was eaten up by inflation, even though the amount remained the same.

With P2P being swift this day, one can within 30 minutes get one's BTC moved to an exchange, swapped and sold into fiat and withdrawn at once. All this within that timeframe and used for whatever purpose one wants without inflation cutting into it. I think people should start looking into this pattern, rather than store up fiat in banks.

[hd49728]

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...

Many nations with fiat currencies that are weaker than the US dollar and have higher inflation rates than the US dollar inflation rate. People in those nations have one of options is storing their wealth in the US dollar as it will have less decrease of purchasing power than their national fiat currencies.

I'm with you on that. I adopted that pattern in 2022 and it has been working fine for me too till date I either leave my money in Bitcoin or convert to a stable coin pending when I'm in need of fiat for expenses since my country isn't that big on Bitcoin option for payment. The little money I left as fiat in my bank before I came to this awareness and knowledge dipped and was eaten up by inflation, even though the amount remained the same.

All fiat currencies are inflation and have decreases of purchasing power with time so if you have better options, fiat currencies even the US. dollar is not a good choice.

Bitcoin with limited supply, that can not be changed practically, and has increase of its purchasing power with time, is surely a better choice for us. If people realize both issues of fiat currencies and advantages of Bitcoin, they will see Bitcoin as their alternative solution against fiat currency inflation.

In addition, if they care about privacy and security, there are more reasons to choose Bitcoin with strong secure blockhain, decentralized network and better privacy than fiat currencies and bank systems.

[suhadi88]

Crypto have come to stayed. There's no way fiat currency that will beat crypto definitely not in a 10 years to come. The only thing that will make one choose fiat currency over crypto is ignorance and not been properly hinted towards the crypto space. We know the gathering and what comes next when we choose crypto, it's not stable and save compare to fiat currency and its definitely filled with risks, but you do know the more risk the higher the rewards.

Whoever gets in early will have everything worthwhile, meaning there's someone who has sufficient knowledge and the ability to accurately predict growth. Therefore, someone will never hesitate to invest.

He didn't come to try, but to truly get in and be consistent with BTC, based on the enthusiasm and support of his guru.

[liasbaa]

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.

Crypto have come to stayed. There's no way fiat currency that will beat crypto definitely not in a 10 years to come. The only thing that will make one choose fiat currency over crypto is ignorance and not been properly hinted towards the crypto space. We know the gathering and what comes next when we choose crypto, it's not stable and save compare to fiat currency and its definitely filled with risks, but you do know the more risk the higher the rewards.

Your paragraph seems a bit confusing in terms of wording. You should specifically mention Bitcoin. The main point is that neither fiat nor digital assets are competing. They are two different monetary systems. Fiat is a centralized system that is directly managed by the government of the country. Governments of different countries manage fiat through central banks and they can print fiat as per their convenience. Printing excess fiat for the country creates inflation.

Bitcoin is a decentralized monetary system which is a global digital asset. No country's government can change this monetary system for its own benefit. Investors are leaning towards investing in Bitcoin due to its independent financial system. Although the price of Bitcoin is volatile, its unique characteristics have made it a global asset. Bitcoin is a store of value.

[reagansimms]

Crypto have come to stayed. There's no way fiat currency that will beat crypto definitely not in a 10 years to come. The only thing that will make one choose fiat currency over crypto is ignorance and not been properly hinted towards the crypto space. We know the gathering and what comes next when we choose crypto, it's not stable and save compare to fiat currency and its definitely filled with risks, but you do know the more risk the higher the rewards.

Your assumption could be right, but it could also be wrong. I'm very happy to see the significant growth of crypto, but you shouldn't overlook the role of fiat currencies, which have the full backing of governments, thus having great strength and stability. We assume crypto will continue to grow and become more dominant over the next 10 years, but it's possible that governments will introduce new regulations and innovations to keep fiat currencies relevant. It all depends on how the crypto and global financial ecosystems evolve in the future.
I don't see any competition between crypto assets and fiat currencies, as they can coexist and complement each other. The presence of crypto assets in the community provides more choices and flexibility in managing finances.

The basic principle of investing is "high risk, high reward." Crypto does carry higher risks, but also potentially greater rewards. However, you must balance both with your financial capabilities and investment goals to avoid making impulsive decisions that could jeopardize your finances.

[imyaoutt]

Money going into a bank is different than money going into btc.

Money in your bank is for spending relatively soon. Money into btc should be for long term investment. 10+ years unless emergency.

snaptube vidmate

[barbodiano]

Yes, historically Bitcoin has massively outperformed fiat savings, especially if someone DCA’d consistently. But that outcome depends heavily on when those 5 years happened. If the same person started near a cycle top, the result could look very different. Fiat savings don’t exist to beat returns, they exist to reduce risk and provide certainty.
The $8K in fiat isn’t “worse” by default. It’s liquid, predictable, and available exactly when you need it. During emergencies, volatility is the enemy, not your friend. Selling BTC during a drawdown because you must access funds can wipe out years of gains. That’s a real cost people often ignore when doing return comparisons.
Bitcoin’s volatility cuts both ways, as you said. The upside is huge, but so is the psychological pressure. Many people say they can hold for years, but panic sell when price drops 40–60%. A strategy that looks perfect on paper can fail in real life behavior.

The smarter takeaway isn’t “BTC good, fiat bad.” It’s allocation. Fiat for stability and emergencies. Bitcoin for long-term asymmetric upside. Mixing both reduces forced selling, improves discipline, and lets volatility work for you instead of against you.
Bitcoin rewards patience, but patience is much easier when your basics are already covered.

[Muba20]

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

You're right that bitcoin is a risk investment but is profitable both in short term investment and long term investment which is the reason many investors are adding bitcoin to their investment, you can save huge amount of funds in the bank because there is no fear of scammers but it will not increase higher to make the funds double in your bank account, but if you save huge amount of funds in bitcoin it will increase higher to make the funds double in your wallet, but very much easy for scammers to deceive you to have access to your coins, I can recommend someone to put huge amount of funds in the bank and put small amounts of funds in bitcoin .

keep money in the bank, the bank will charge, the value of the money will also lose due to inflation. That is why it is more profitable to keep money in Bitcoin than in the bank. If you keep money in the bank, the return of that money in the long term, which is much less than the time. And since the emergence of Bitcoin, the price of Bitcoin has been increasing continuously. For those who are planning to deposit their money, especially for a long time, Bitcoin is definitely the best option.

In investing in Bitcoin, the investor can provide the security of his own bank himself. There is no need for any third party intervention. He can withdraw and deposit his money at any time according to the convenience of the investor. Moreover, the return is also higher than that of the bank. It is possible to get several times the return in the long term, which is never possible from the bank. A big problem with keeping money in the bank is that if a bank goes bankrupt for some reason, the bank will not return your money. That's why it's safest to keep your money to yourself.

[tvplus006]

...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. ..

These calculations are only good on paper, but in practice the result can be completely reversed. Everything will depend on what price you start buying BTC at and what cycle the cryptocurrency market will be in 5 years. And I assume that instead of the profit you calculated, your savings in dollar terms will be unprofitable.