Bank Or BTC

[Clearnet]

I'm getting 11.5% interest on my FDR right now , within 6-7 years my investment will be 100% in profit if I do not cashout.
I'm getting a 10.5% Interest on my DPS , Which I save money in monthly basis. Interest rate drops and increases however it's always around 10% .

So if I invested on BTC I would likely get a 2x - 3x on next bull season. If I count it as 4 year cycle then to make next leg up I would need 4 whole years sitting my fund.

But If I approch this way , depositing my interest from DPS on BTC won't be bad. Making free money from free money.

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

[Oshosondy]

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

If you will not be in a hurry to rush to sell but wait for years, the best is bitcoin. Bitcoin will double in price in the next bull run and it will probably still go a bit higher.

The banks APR are too small for me. At least it should be 20% which is the type that I am going for, but that is just little part of my fiat while most are in bitcoin right now.

[Ronsbit]

I will prefer Bitcoin over fiat. Why ? I have many reasons for choosing Bitcoin over fiat aka Bank.
Forget about the interest rates you will know if you truly made profit after they must have collected all the charges including their own fee and give you your profit that is when you can conveniently tell your experience with bank savings or investments but Bitcoin doesn't entertain third parties except you want to go for it but sole custody highly recommended.
You can invest without any third-party, long term short term is okay, you decide when to take profit. No third party fees and charges as long as your assets are under your supervision. Your investment privacy is guaranteed. So you can now see the big difference, it is left for you to decide.

[tabas]

I'm getting 11.5% interest on my FDR right now , within 6-7 years my investment will be 100% in profit if I do not cashout.
I'm getting a 10.5% Interest on my DPS , Which I save money in monthly basis. Interest rate drops and increases however it's always around 10% .

So if I invested on BTC I would likely get a 2x - 3x on next bull season. If I count it as 4 year cycle then to make next leg up I would need 4 whole years sitting my fund.

But If I approch this way , depositing my interest from DPS on BTC won't be bad. Making free money from free money.

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

You already have the numbers and idea on how much you'll be able to make in the next cycle if you invest it in Bitcoin. I think what's important here is about this money you are in the FDR and DPS are money you are willing to lose. So either way, both are going to be good places for you to earn. I think in the bank, they're almost risk free but as for bitcoin, there's the risk that you need to take. Depending on your situation and what will give you peace of mind because others might be sensitive in numbers and want to know-it-all but doesn't have any heart to take the risk.

[Hazink]

You seem to already be comfortable banking interest payout and security, so I won't go ahead to go ahead to convince you of pulling those funds from them, but I will also suggest that the idea of using the interest paid out by the bank to invest it in bitcoin, since it's already considered as free money by you there is high possibility that you won't easily be moved by price movement and can possibly hold for long term, if the value and the market behave the way you can handle in your first few years you can look from their to make you next long term decision.

[Josefjix]

But If I approch this way , depositing my interest from DPS on BTC won't be bad. Making free money from free money.

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

Approach the both investment market and profit from the both investment journey, putting your egg in one basket is a not a good investment strategy. I cannot advise you to focus on FDR or BTC only, if I do then that's a bad advise.

I don't know your capital, but whatever it may be, leave whatever you have invested in FDR, and then consistently stack BTC from your monthly income, can't tell how much to use for it, you should know that.

Participating in the both investment will give you a wide sense of healthy investment decision.

[M47AK16]

I'm getting 11.5% interest on my FDR right now , within 6-7 years my investment will be 100% in profit if I do not cashout.
I'm getting a 10.5% Interest on my DPS , Which I save money in monthly basis. Interest rate drops and increases however it's always around 10% .

So if I invested on BTC I would likely get a 2x - 3x on next bull season. If I count it as 4 year cycle then to make next leg up I would need 4 whole years sitting my fund.

But If I approch this way , depositing my interest from DPS on BTC won't be bad. Making free money from free money.

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

11.5% for 7 years equals to around 80% and not 100%, either your math is too weak or you rounded it up and I don't think you can round up about a 20% difference.

I wouldn't tell you to invest your money in Bitcoin and don't keep it in the bank, but it's important for all of us to know the shortcomings in everything we do or are already doing. You measured the interest percentage you are getting and how much you are going to get after about 6 to 7 years, but you missed a very important point: devaluation. It is when the fiat currency loses purchasing power over time, and that's going to cause more harm than one might imagine.

After 7 years, you might have 80% or 100% (according to you) interest on your FDR, but what if the total amount then only has the weight of just 100% right now? Which means that if you have $10,000 right now, and you can buy a specific thing with it in present, you might need double the amount to buy it then, and in that case, did you really make any profit?

With Bitcoin, we all know that it tends to go higher after every cycle, which indicates that after 7 years from now, Bitcoin's value will surely be way higher during that bull run.

[MarryWithBTC]

The banks APR are too small for me. At least it should be 20% which is the type that I am going for, but that is just little part of my fiat while most are in bitcoin right now.

Anything from 15% is a good deal. Which financial institution gives 20% RoI?

If I see any bank that offers 20%, I'll not fail to invest. The only disadvantage is the inflation but it is a good investment.

Op, the reason people love bitcoin is not only because of investment, but with bitcoin they can control their investment themselves without going to a third party.

[ultrloa]

The banks APR are too small for me. At least it should be 20% which is the type that I am going for, but that is just little part of my fiat while most are in bitcoin right now.

Anything from 15% is a good deal. Which financial institution gives 20% RoI?

If I see any bank that offers 20%, I'll not fail to invest. The only disadvantage is the inflation but it is a good investment.

Op, the reason people love bitcoin is not only because of investment, but with bitcoin they can control their investment themselves without going to a third party.

Correct, since I think this is the highest percentage what bank could give. But also for sure it posses risk and banks will not give sure profit if they offer that percentage.

Usual things I see offered by banks on APR is 6% - 8% per annum, which I think so small. This is main reason why I don't think they are best option when it comes on investment, then also if I'm going to hold some funds I will choose to put it on Bitcoin.

Because there's more higher chance that we can get more than what bank could give, especially if Bitcoin experience more bull runs and hit another high price milestone.

[PrivacyG]

What your Bank offers is a way to slow down the devaluation of your Fiat.  It will lose value any way, but if you do plan to use that exact worth of Fiat in a matter of months or even an year or two then it is one of the better ways to make sure you will have the approximately same purchasing power.  Bitcoin historically offered a lot higher returns, even uncomparable.  That does not guarantee you will have the same result however, even I do not know if next year things will be 100 percent better than today.

Any way.  Interest rates offered by Banks is pretty much doing something only so you can not say you did nothing.  If you want to actually produce money, there are better ways that offer much better returns than just a little bit less than the inflation rate.

[Zoomic]

I've read every you said and all I can say is that you're being conclusive in your calculation with bank interest even when things can actually take a different turn.

From what you said, you're simply assuming that the 11.5% bank interest will consecutively run for the next 6-7 years bit have you considered what could be your fate of rate drops after 1 or 2 years? Hope you know that if such thing should happen, the final outcome will different from what you're projecting at the moment?

Yes, we know that investing in Bitcoin comes with  higher uncertainty but we're also aware that in every four years, Bitcoin will most likely give you a return that's higher than double of the amount you bought it with.

So in a situation where the bank rate dropped significantly, will you still prefer the bank or will the numbers affect your decision?

[RGBTC]

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

There are no actual numbers, at least your bank gives you a promise of a fixed interest rate. In bitcoin, no one promises a 2-10x increase every cycle, no one. So it depends on how brave you are to risk your interest in riskier instruments.

11.5% for 7 years equals to around 80% and not 100%, either your math is too weak or you rounded it up and I don't think you can round up about a 20% difference.

I think he's talking deposits with a compound interest approach based on a no cash out scenario, he's right that 6yrs would yield ~1.9x gross (before tax).
https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

[Silverstonez]

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

There are no actual numbers, at least your bank gives you a promise of a fixed interest rate. In bitcoin, no one promises a 2-10x increase every cycle, no one. So it depends on how brave you are to risk your interest in riskier instruments.

At least someone has spoken reasonably, it’s not just about investing the interest in bitcoin can he afford to risk such an amount of money on an asset that is very volatile in nature. A fixed interest gives him a predictable return whereas bitcoin offers no guarantee return. I’m not saying he should not he shouldn’t put such a significant amount of money into an asset that its value can fluctuate dramatically and unpredictably this is me trying to be realistic.

[macson]

So if I invested on BTC I would likely get a 2x - 3x on next bull season. If I count it as 4 year cycle then to make next leg up I would need 4 whole years sitting my fund.

Well, that's your expectation, but no one can guarantee that Bitcoin will really go up during that time period. Its value could just rise a little, drop, or go exactly as you think. Nobody knows for sure --- all you can do is hope that it goes up.

However, the potential value of Bitcoin is never disappointing, even though no one knows exactly when it will rise, there is always a possibility of significant growth. If I were you, I'd rather withdraw all that money and feel more confident putting it into Bitcoin, which is more certain as a store of value than fiat that can be affected by inflation.

[d5000]

Let's have the three scenarios with 75,000$ (~1 BTC) and 4 years (assuming there's a 4 year cycle):

1) Only hold FDR:

~ 116000 $ in 4 years.

2) Only hold Bitcoin:

A 2x would be 150,000 in theory, a 3x 225,000. However if you think the whole bull market yields only 3x (the 2023-25 bull instead yielded around 8x), then you have to take into account that the low until now was about 60k. This means: 2x would yield 120,000, and a 3x 180,000. The average between both values, and thus a realistic expectation for the next cycle top is similar ("around" 140-160k). Risk however is higher. And take also into account that you don't want to sell at the bottom of the next bear. I think the 4 year cycle has become unpredictable so you can't really rely on this. You would have to carefully look at the signals of excessive FOMO to really make more than a 2x.

I think a 3x is realistic, but measured from the 60k bottom area, not from the current 75k price. And thus I'd expect:

~ 150,000 in 4 years if you buy now and sell at the top.

3) Put your DPS interest in BTC ("DCA" approach):

Depends totally how the market evolves. For example, let's say the averages 2026-29 are the following:

2026: 75,000
2027: 100,000
2028: 130,000
2029: 150,000

- the problem is that you allocate a part of the money in high-price phases (2028 and 2029). If you are able to sell at the top (180k), then you'll get the following (for simplicity I use 10% instead of 10.5%):
75000 + (7500 * 15000/7500) + (7500 * 15000/10000) + (7500 * 15000/13000) + (7500 * 15000/15000) = 117400 after 4 years.

This means you have a minimally better ROI than with the first option, less than the "BTC only" strategy, but with much less risk. The upside is that if you think Bitcoin "could" explode to 4x and more, then this would yield a much better ROI.

My preferred strategy would be to allocate, in advance, around 30-50% into Bitcoin if I consider I'm currently in a Bitcoin winter, and then take the interest rate for the remainng funds, sell 50% of the BTC at a clear FOMO top and re-allocate them into DPS or FDR depending on if you speculate to re-invest again.

(Edited: in first version of this post, scenarios for item 2 and 3 were different so they weren't comparable.)

[philipma1957]

I'm getting 11.5% interest on my FDR right now , within 6-7 years my investment will be 100% in profit if I do not cashout.
I'm getting a 10.5% Interest on my DPS , Which I save money in monthly basis. Interest rate drops and increases however it's always around 10% .

So if I invested on BTC I would likely get a 2x - 3x on next bull season. If I count it as 4 year cycle then to make next leg up I would need 4 whole years sitting my fund.

But If I approch this way , depositing my interest from DPS on BTC won't be bad. Making free money from free money.

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

67

An actual number no promises.

[shinratensei_]

So if I invested on BTC I would likely get a 2x - 3x on next bull season. If I count it as 4 year cycle then to make next leg up I would need 4 whole years sitting my fund.

Possible if you buy the pico bottom of the cycle and then the cycle goes up, might surpass this number easily.

But If I approch this way , depositing my interest from DPS on BTC won't be bad. Making free money from free money.

Seems about right, if you don't want risk, only potentially waste your time in the worst scenario, you can deposit interest to BTC and DCA. In fact DCA is the recommended approach. Making free money from free money is the best.
Even if the price fluctuates, it won't give you mental stress because you can afford to lose it as long as the interest from DPS isn't too small or at least enough to not only waste your time. How much capital you have is important when we are talking about investing strategy, frankly. Yet it's nowhere mentioned.

[pooya87]

within 6-7 years my investment will be 100% in profit if I do not cashout.

Are you sure?
You are talking about holding fiat after all and no matter how much interest the bank pays you, it is usually less than the inflation or at best equal to inflation rate. That doesn't give you a profit. Best case scenario is that you barely keep your purchase power in long run.

[Darker45]

I'd rather not put it this way: Bank or BTC. You can actually make it Bank and BTC. It doesn't hurt to diversify. On the contrary, it's highly recommended.

Anyway, 11.5% on your FDR is quite high, something I might not find here in my country. But I'm sure it's heavily taxed, right? Is it 20%, 25%? And what if you need to cash out before the maturity? The computation could even turn to lower than 1%, correct? Or what if the bank goes bankrupt or unstable before the maturity? Or your government suddenly facing hyperinflation?

Or what if Bitcoin doesn't 2x or 3x in the next 4 years?

There will be risks in everything, so I guess it's better not to focus on "which one would be better". They have their own strengths and weaknesses. What's probably best is to take advantage of them all.

As to Bitcoin, nobody could give you actual numbers or promises. Invest at your own risk. Unlike your FDR, you won't be signing a contract. You won't be getting a certificate with guarantees. Invest at your own risk.

[dzungmobile]

Are you sure?
You are talking about holding fiat after all and no matter how much interest the bank pays you, it is usually less than the inflation or at best equal to inflation rate. That doesn't give you a profit. Best case scenario is that you barely keep your purchase power in long run.

Sometimes, people just don't know about actual inflation rate in the nation because government and central bank there intentionally hide such sensitive information. Bank interest rate can be high, and actually considerable higher than usual, than previous years but some people don't have financial knowledge simply see it as normal and are not aware of inflationary issues, consequence decrease of purchasing power of their national fiat currency, and other consequences on their life and finance.
Between bank with bank interest and Bitcoin with investment ROI, I surely choose Bitcoin as in many years, I have not stored my money in bank.

If I have any bank, it's my own bank, my Bitcoin bank in my non-custodial wallets.