Bank Or BTC

[davis196]

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.

Why don't you add inflation to the equation? What is the average annual inflation rate in your country? Your actual profit might be less than 100%, if you adjust it with inflation.
2x-3x on next bull season? Why are so many people convinced that Bitcoin is guaranteed to double or triple in price during every bull season?
What if the Bitcoin price increases only by 50% in the next bull season? Would you consider this to be a failure for Bitcoin?
There's no "this or that" principle in finance. You can stick with both BTC and fiat investments. Diversification of your assets is a must.

[Peanutswar]

If you have an opportunity why not take both. When it comes to building assets or savings with the banks most of them offering loans, and even credit cards for better experience related to finance, banks are centralized once you have a good reputation you can get easily a perks and access service, with bitcoin of course it's a long term investment took a cycle, but bitcoin is just another form of investment only depends how you will use like in a transaction base, payment or long term hodling. For me I prefer both as an opportunity to earn but as possible only few in banks because there is an inflation the value of your money gets less over time.

[Clearnet]

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.

That's what I am planning to do right now, but you know if there is a possibility of 4-5x without any risk, then why would I bother keeping my money in the bank?

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.

No one knows the actual number, but in mathematical terms, there are always statistics. You just don't put your money blindly.

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.

Ig you do not have any clue about compounding or compound intersts. You should dig well.

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?

That's true, but this also goes for Bitcoin. I am investing $1k today, in 4 years, let's say my investment is worth $2.5k, so you are telling this money won't charge me that 100% of the price hike, which is essentially purchasing power. The amount of risk I am taking here, while I have a safer option, is it right to dive in or not?

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.

Lol you should not jump over , no banks is providing such a big amount of interests . If then there might be some kind of scam going on. Do not just jump over watching high interest , make sure they are safe.

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.

That's true, but are we trading Bitcoin directly? The answer is no, still we are not accepting bitcoin as mass payment gateway sine that happens we are still far away Ig.

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.)

This explanation was far better than a blind investment. I think taking a 30% risk for a greater opportunity is still a lot better than a 100%.

I was thinking of putting my 100% interest on my DPS into Bitcoin. After a certain time I would still have my lifetime savings , same time I would get some bitcoin. If lucky enough I would get a higher returns on it.   

67

An actual number no promises.

Also, without numbers, it's all just a risk. Blind gambling.

[iBaba]

~~~

I think the third option is probably the easiest one to live with because you are not putting your main savings in too much risk, you still have FDR/DPS generating interest, while that gives you some exposure to bitcoin. I would be careful with assuming that bitcoin will reach 150 or 180 thousand within four years because the previous pattern cannot be the same as the next one, it could take time to reach it peak or happen earlier than expected.

For me I would rather use interest to accumulate bitcoin and avoid fixed price target or selling at a particular time, if it eventually has a strong run then I can just decide what to do with the profit base on the market at that time. Like that I would not depend on the four years cycle being correct.

[Renampun]

The interest you got does look pretty good, but actually if we compare it to the inflation rate, your money isn't gaining as much value as it seems.. your money is just trying to keep up with inflation rather than generating any real growth. For someone who wants to preserve capital that might be a good choice, but if you really want long-term growth, then choosing Bitcoin is much better.. maybe if it were me, I'd put the majority into Bitcoin.. well, I get that there's no guarantee it'll shoot up in 4 years, but considering Bitcoin's potential price and the fact that I don't have to pay taxes and all those fees, it feels more worth it to me.

[sunsilk]

That's what I am planning to do right now, but you know if there is a possibility of 4-5x without any risk

If there's an investment that can grow my money by 4x to 5x, I've already done and put my life savings into it. But there's none in reality.

And with the free money you have being put into Bitcoin, we might consider that as risk free because the money you invest in it came from your profit but that's on how you accept that whether it's risk free or not.

then why would I bother keeping my money in the bank?

Better put it in bitcoin, with the risk it has got you're doing yourself a favor by hedging against inflation.

[Ayers]

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.

currency depreciation and inflation can't really be hidden because they directly affect people's daily purchasing power. government cannot hide it, its just that many people still lack basic financial knowledge to recognize it.
i think comparing bank and Bitcoin is kinda like comparing apple and orange. bank deposit can earn interest, but they are more about saving and preserving your money than investing. Bitcoin, on the other hand, is generally seen as an investment asset with much higher volatility.  
these two are not really the same type of asset, so you cannot directly compare them based on roi.

[Somegory]

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.

Bitcoin can easily 2x in 2027 normally, even by December will be over 100k or very close, this is my own believe and I can always be wrong but why not just be in both? Keep earning percentage on your fiat in Bank.

Keep holding Bitcoin as well then you are benefitting from everything, in another form it's you practicing don't put all your eggs in one basket, but as for someone like myself to hell with those percentages.

I will survive through other means and keep holding Bitcoin, I've decided long ago to never have anything to do with the banks and if possible I don't want to have anything to do with centralisation too..

[Nathrixxx]

This really depends on your own appetite for risk and greed.

It is because we are more tired of using banks and their policies that are controlled by the government, making the entire system a failure and something we cannot trust any longer, and this is why the Genesis of Bitcoin begins; only someone who does not understand the meaning of running a decentralized financial economy will not take the time to know the relevance of Bitcoin in today's dispensation.

There is risk in Bitcoin, and at the same time you can tend to be greedy for quick profit, but the one using the bank is more at risk than if you could manage yourself and be well informed about the Bitcoin network and not be greedy for quick profit.

[cryptomaniac_xxx]

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

The fist rule of thumb here is that we don't or hard to give financial advise as everyone might have a different approach.

And this is obviously a Bitcointalk community, so majority here might say that Bitcoin is better than banks. The thing that differentiate is that you have total control of your funds with Bitcoin, it is not locked like in a bank. Although you really need to have a good and proper security hygiene so that you won't fall from the scams. But it's the strength of Bitcoin, everyone is responsible.

[As-Soon-As]

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% .

Look, you have money in the bank, its value is gradually decreasing, no matter how much interest you get, the value of this money is gradually decreasing, that is, inflation is happening. However, in my opinion, if you invest your money in Bitcoin and keep it for a long time, it will be better for you.

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.

Bitcoin is most profitable to hold according to the investment cycle, because every four years the price of Bitcoin reaches an all-time high. However, you can follow the Bitcoin DCA method, which is profitable for you, because the value of the money you have in the bank is gradually decreasing.
But the value of Bitcoin will increase the further into the future, and it plays the most effective role against inflation. I say holding Bitcoin is a much better and better plan than holding fiat currency.

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.

According to the plan, Bitcoin investment is definitely the most suitable, because you can earn benefits based on how much Bitcoin you hold. So in my opinion, holding Bitcoin is much more effective, investing in Bitcoin can help you get rid of financial shortages in the future. So you can hold on to Bitcoin tightly to build a wealth of money in the future and accumulate more Bitcoin for future purposes.

[Karl_3000]

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.

I will prefer all to be in bitcoin and later enjoy the all time high and more money. Investments are better than savings to me.

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?

It will be the normal tax which everyone are paying called income tax. But the problem is the inflation, that is what I do not like about savings, inflation will eat the profit.

[Hewlet]

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.

Our individual situation differs when it comes to making investment choices and when you have sat down to do all the analysis, you are in the best position to deciding what you want based on available data and what you want from your investment. bitcoin is good and in most cases is a better option compared to the fiat but because of it long term  nature, there will always be a clause to investing in it and if you know you cant stay invested for the long term, it is always better to invest in what works for you.

BTC might be less volatile at the moment but in few years time, it is very possible to see it sitting x2 or x3 of it current value. while that is not 100% certain to happen, investing in bitcoin always have an overall positives than investing with banks.

[Itz-prisigold]

If am the one in this position, I think it will be more interesting to invest the interest i gained from the bank in Bitcoin than investing the entire savings in Bitcoin.  Because I'll still have the original money sitting and accruing more interest and I'll be using the extra money to buy Bitcoin.

The most important thing I would have to remember is that the 2x or 3x on Bitcoin return is not certain but the bank interest is more predictable. So I don't see this as a case of picking one over the other, I think the best thing is to balance both sides, than to pick one completely over the other.

[louis2608]

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.

That strategy of using the interest or returns from your traditional savings to stack into Bitcoin is actually a pretty solid middle ground. It lets you keep your principal secured in fixed deposits while using the "house money" to chase that higher upside without exposing your core savings to full market volatility.

[OsaiEmma]

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.

Ig you do not have any clue about compounding or compound intersts. You should dig well.

To be fair, you didn't mention compounding, so I feel they're not wrong to point that out, because I had a similar reaction after reading your OP and doing the calculation.

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?

That's true, but this also goes for Bitcoin. I am investing $1k today, in 4 years, let's say my investment is worth $2.5k, so you are telling this money won't charge me that 100% of the price hike, which is essentially purchasing power. The amount of risk I am taking here, while I have a safer option, is it right to dive in or not?

Exactly, it's not like your Bitcoin is increasing from 0.1 Bitcoin to 0.11 Bitcoin. If it yields over time in terms of purchasing power, and you off-ramp, you'll still have the same depreciated fiat at hand. If your fiat investment grows from 1k to 4k and your Bitcoin investment grows the same way, your Bitcoin will still purchase the exact same thing as your fiat. So, at the end of the day, in this scenario—where your fiat is producing yield—they'll both experience inflation the same way, especially if their yields are the same.

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.

Lol you should not jump over , no banks is providing such a big amount of interests . If then there might be some kind of scam going on. Do not just jump over watching high interest , make sure they are safe.

Over here in Nigeria, I have used a microfinance bank offering a 15% - 18% yield depending on the lock up time, with an auto-compounding added feature. And, if you want to question it's legitimacy, the name of the microfinance bank is Opay, you can go look it up. It even offers 22% short term lock up for first time investments.

I think these interest rates varies from country to country, in my country with high inflation rate, a 10% APR is quite low.

[Z-tight]

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

Sorry, you're not going to get any fixed numbers, BTC is volatile and it is not a yield-bearing asset with any promised fixed returns. If you are going to analyse what you can possibly expect if you invest in BTC, then you have to study its past price movement and relate it to the current time, if history would repeat itself.

I'd refrain from giving you any investment advice, but personally i'd use any good opportunity to stack sats and what you have mentioned here sounds like a good thing to do, if you are ready to bear the risks.

[Ronsbit]

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.

That aside, the Bank would also drain the profits from you through charges, fees and taxes you never expected compared to Bitcoin. They are in charge so they have access to your investment but Bitcoin is under your custody so one have the sole control over it with no third party involved in it. This is why I would prefer Bitcoin over fiat investment.

[Nrcewker]

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

If you can tell me which country you are a resident of, then we can actually give you more accurate numbers. If I talk about my country then I would have to pay tax on the interest earned, so its not exactly a 10% return because some of the interest would be taxed.

On the other hand interest or profits from Bitcoin are not taxable until and unless you use a centralised exchange. All thanks to the decentralised nature of the coin. If I were in your place, I would definitely diversify my investments. I would invest in FDs, DPs and Bitcoins also. I think instead of using only the interest money to buy Bitcoin, it would be wiser to allocate more money toward accumulating Bitcoin. Bitcoin has the potential to generate higher profits in the long term.

[Kelward]

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.

I'm glad that you're financially intelligent and if you're comfortable with this strategy then go for it, you don't need anybody's validation to do what you believe is right for you, I think the strategy is not bad so you can stick to it. How we priotize our discretionary funds is up to us and from your strategy you prefer to diversify your bank interest into Bitcoin investment but for some of us we make provisions for Bitcoin accumulation directly from our discretionary funds and it shows how we priotize Bitcoin accumulation. When it comes to Bitcoin investment what is important is that you're using amounts that you can easily give away to accumulate it because it is a volatile asset, you don't need substantial amount where you might be pressured to sell especially when price is decreasing.