Bank Or BTC

[Faisal2202]

The OP way be getting 11.5% interest but the government is taking a percentage of that through
inflation, so its not really 11.5% and then there is probably a tax on that profit also.

For example in my country the government are providing a savings scheme over 10 years at 22%!
yes 22% . . . over the 10 years which is only 2.2% per year but inflation is advertised at running at
about 4%, in reality its higher. So anyone putting money in the bank is actually losing.

Same with the OP's scenario, its not actually 11.5,%

Thats where BTC makes better sense

I can't agree more. Actually, traditional people typically look at the return in nominal terms, they don't consider the purchasing power, and that's bad optics. The new generation is smarter, but I have seen people choosing a chocolate bar when given an option to choose between a 10-ounce bar of pure silver bullion and a Hershey's King Size chocolate bar.

In this situation, I only believe in one thing, that not all five fingers are equal, so not everyone is as smart as they look. Anyway, with time, I hope everyone will look at purchasing power instead of just looking from the nominal side.

BTW, the interest rate is lower in your country, here people can earn 7% to 15% per year by depositing in banks. Which is a good offer because inflation is high, but not this high. But here, people have to pay 20% tax on the amount they made in profit as well.

[strunberg]

Additionally, a lot of people are avoiding putting their money in banks because they believe that inflation will eventually catch up with their savings and that it would be better to just find a way to do things that will allow you to profit from your savings as the money is invested. Additionally, the asset's value may decrease at the same time, but it also has the potential to increase, which is just one of the benefits of bitcoin.

I believe that hardly any of the wealthy and successful people around us keep money in the bank with the expectation of making a profit. They keep funds there primarily to facilitate daily financial transactions or to meet requirements for securing bank loans. Currently—especially in my country—adopting Bitcoin as a medium of exchange isn't feasible, as only a small fraction of the population knows how to use a Bitcoin wallet. If the goal is to generate profit, bank time deposits are not a viable option—unless the funds are specifically intended for living expenses. I suspect wealthy individuals allocate less than 10% of their assets to time deposits. I recall a podcast where someone mentioned keeping only about $100,000 in a deposit earning 5–6% annual interest; they used the interest income to cover daily living expenses, as they could live comfortably on around $500 a month. However, the bulk of their wealth was held in other assets, such as gold, silver, government bonds, stocks, and Bitcoin.

Ultimately, the point is that banks aren't the best place to invest your money. And while Bitcoin was originally conceived as a medium of exchange that operates without third-party intermediaries, I believe it currently serves as an excellent—albeit high-risk—investment asset.

[CryptoBuds]

BTW, the interest rate is lower in your country, here people can earn 7% to 15% per year by depositing in banks. Which is a good offer because inflation is high, but not this high. But here, people have to pay 20% tax on the amount they made in profit as well.

Every country has a different economy, currency and inflation. You can't just look at the rate and quickly call it high or low.

Take a stable economy like Switzerland, where inflation is below 1%, currency keeps its purchasing power pretty well and the central bank rate is 0%. Bank deposit rates are only around 0.11% a year. Flip side, in developing countries the rate can hit 10-15% a year but real inflation can even be twice that.

But overall, bank deposits are pretty hard to compare with Bitcoin, whether inflation in that country is low or high.

[yudi09]

-snip-

So according to this situation which one would be better? I wants some actuall numbers not promises.

The better option lies in the decision you make. That’s the most common answer, but it’s the truth I have to point out: since people who choose to invest in a bank do so based on a predetermined interest rate, they can calculate exactly how much profit they’ll earn over a specific period.
As for me, I’d choose Bitcoin. My analysis is quite simple. I can get a return that covers the purchase price with every move I make. I’ve already achieved that, and from those returns, I’ve been able to buy several items I wanted—it didn’t even take 10 years, just one all-time high (ATH).

[Beke_26]

Bank and bitcoin have the same function in the society and are supposed to be on the same category,
However, the decentralisation of bitcoin is one distinguishing factor that have made it a unique digital currency. The fact that  you can actually control your own currency and store it in your wallet where only you can access without any laws or policies is one interesting thing too about bitcoin so while your local bank is being controlled by government policies, you control your bitcoin using your control keys.
There are a whole lot of benefits with the use of bitcoin but most times people don't realise and think that they really can not trust bitcoin  but that's far from the truth because bitcoin also a very good option beside the local banks.

[cxtreenal]

-snip-

So according to this situation which one would be better? I wants some actuall numbers not promises.

The better option lies in the decision you make. That’s the most common answer, but it’s the truth I have to point out: since people who choose to invest in a bank do so based on a predetermined interest rate, they can calculate exactly how much profit they’ll earn over a specific period.
As for me, I’d choose Bitcoin. My analysis is quite simple. I can get a return that covers the purchase price with every move I make. I’ve already achieved that, and from those returns, I’ve been able to buy several items I wanted—it didn’t even take 10 years, just one all-time high (ATH).

You are considering ATH as a target for returns. Your strategy is good but it is not a sustainable approach for long term investment. Personally I think that 4-10 years of DCA is the most appropriate.

In the traditional banking system a person deposits money in the bank to grow his funds. If they had literally known the bad effects of inflation, they would not have made this fool and misleading decision for a small interest rate. In the traditional banking system, while you may see some growth in your principal fund due to interest rate, its value is actually decreasing.

Choosing Bitcoin for the long term is the best strategy, experienced and intelligent investors choose the best investment strategies.

[yudi09]

-snip-

You are considering ATH as a target for returns. Your strategy is good but it is not a sustainable approach for long term investment. Personally I think that 4-10 years of DCA is the most appropriate.

In the traditional banking system a person deposits money in the bank to grow his funds. If they had literally known the bad effects of inflation, they would not have made this fool and misleading decision for a small interest rate. In the traditional banking system, while you may see some growth in your principal fund due to interest rate, its value is actually decreasing.

This is the concrete reason why I chose Bitcoin. From the perspective of the profits in question—and he emphasized that this is a factual reality, not a promise—choosing Bitcoin with the goal of reaching a new all-time high (ATH) is certainly profitable, with a return that may be higher than what he calculated if the money were deposited in a bank at the prevailing interest rate.

Sometimes people only focus on the profit side, but forget that with fiat currency, there’s such a thing as inflation. The impact of inflation can prevent people from getting what they expect.
That’s assuming the inflation rate isn’t too high. But what if the inflation rate is high?