Bank Or BTC

[Sonia_123]

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.

Good idea since you have already receiving interest from your bank which is good and the interest is being used to accumulate bitcoin without financial stress anymore, anyway can't tell your interest amount , but if it is necessary that one has to choose between a bank  and bitcoin, then I will choose Bitcoin since it is not affected by inflation and devaluation or any economy challenge but an edge over inflation.

Bitcoin still remains the best in savings with a high reward at the end of your holding period irrespective of how little or much you have in your portfolio, bitcoin does not depreciate over time but appreciate and that is why we now see alot of persons heading towards having bitcoin.

[Odusko]

Bitcoin still stands as the real hedge against inflation that comes with times and the various economic activities to affect traditional banks' assets, the truth is that bank's assets like stock and bank shares can be highly exposed to risk of inflation resulting from the various factors in the economy that can even be unexpected to the investors, but bitcoin only notable risks comes from it volatility which can be properly managed based on the investors' risk management and long-term experience.

[#CapsLOck]

There is one thing missing in the comparison between the two returns. Namely the distinction between nominal and real returns. If the rate of compounding remains at 11.5% per annum, how much more would be 19,600 after 6 years? However that doesn't mean that the purchasing power is also rising by 96% as inflation and taxes and other expenses come into play. The opposite problem with bitcoin is that there is no set return. And a 2x outcome over a cycle isn't a sure thing. I believe it would be better to compare the after-tax bank return to the actual historical volatility of BTC over that time. Instead of comparing 11.5% to an assumed 2x.

[red4slash]

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.

There are no factual figures that we can be sure of when it comes to bitcoin because it is not just about how we see the planned profit in a certain percentage in a certain year considering that bitcoin is uncertain and we must be aware of this from the beginning.
But for sure when we are ready in a few years to hodl like 2 halving cycles as you mentioned earlier then there will likely be a much greater level than the percentage you get in 6-7 years in the Time Deposit you do.

Being in bitcoin is uncertain so there will be no actual data about the percentage of profit you can get in a few years (the number will not be certain) but what is good here I am quite sure it will be greater than the Time Deposit you do even though the risk is also much greater.

[Luke3bird]

There are no factual figures that we can be sure of when it comes to bitcoin because it is not just about how we see the planned profit in a certain percentage in a certain year considering that bitcoin is uncertain and we must be aware of this from the beginning.
But for sure when we are ready in a few years to hodl like 2 halving cycles as you mentioned earlier then there will likely be a much greater level than the percentage you get in 6-7 years in the Time Deposit you do.

You can see Bitcoin ROI, traditional assets' ROIs, rates and yields for UST and FED fund.
https://casebitcoin.com/

With all given information, I see no reason to convince me keeping my money in fiat currency and store it in banks.

With Bitcoin blockchain, Bitcoin non custodial wallets, I have my Bitcoin bank, full control of my bitcoin, and very potential outstanding ROI in coming years.

[laijsica]

Never imagine Bitcoin investment with making a profit by depositing a fixed amount of funds in the bank. Bitcoin is a good way of investment and a store of value. Banks apply their institutional policy in determining the interest rate and after the maturity period, they will give you a lower profit rate than what is being offered to you. It is better to save Bitcoin in the DCA method than to get this limited rate. Those who understand that the negative effects of inflation reduce the value of fiat do not save fiat. It should be remembered that making a profit in long-term Bitcoin investment depends on your own strategy and does not have to be dependent on any financial institution (bank). There will be a higher probability of getting high profits from Bitcoin holdings in a long term own investment system.

[@nn@_pen9]

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.

In my opinion, an 11.5% return on a time deposit over a period of 6–7 years is very low. You can simply compare the two now to see which offers better maximum returns time deposits or Bitcoin.
You can look at the Bitcoin price movement chart from seven years ago and the price today to see what percentage of profit you would have made. Now that your train of thought is clear and open, would you still choose a time deposit?

A bank is not a safe place to park the fruits of your hard labor whether in time deposits or other instruments in hopes of earning a return over a fixed period. Just look at 2008 even a giant like Lehman Brothers could collapse. Do you still trust keeping your wealth in a bank for the long term?

[EarnOnVictor]

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% .

Let's just call it 7 years because of taxes and other charges, depending on where you fixed it. Does that even make any sense? It looks like a waste of time to me. Well, there are better rates offered in my country, as 18% is now common, and you can get more than that. And of course, ours is high because the interest rate is very high, so you should know that the money is not so valuable either. And if it is in my country, that money must have been useless in 10 years. I mean very useless.

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

Bitcoin, of course! With the right timing, Bitcoin could easily deliver around 4x in every cycle (4-year period). And guess what, that ROI could be delivered in less than 2 years, depending on the time of your investment.

[Darker45]

~snip~

I have never thought that an interest in a bank could be that high. All the time, I thought that Bitcoin is always the winner on this regard. But with that high interest some bank can offer, I am pretty sure that there is also a catch with that.

Impossible for savings. I don't know where OP is coming from, but perhaps there's a fixed deposit or time deposit account in his/her country that offers this high interest. But, again, on top of fees, this is also heavily taxed, so you'd probably only get around 80% or 75% or even lower profit after all the deductions.

But this doesn't mean it defeats Bitcoin. With Bitcoin at $76,000 right now, I don't think it will take 6-7 years for your investment to double.  

I can believe more in Bitcoin that it will only rise at the long run despite of its active volatility. Bitcoin's nature is also decentralized, which means we can withdraw anytime we need the money. Bitcoin is basically like a bank already, therefore there is no need for an actual bank anymore. And If I am going to diversify my funds, I will only do it on other investment instruments, so that they don't share the same risks. High interest rate alone cannot convince me to choose traditional banking, I mean, if in future, there could be a possibility of decentralized bank which deals with fiats, then I may consider and definitely not with the current traditional banking.

This is the problem with time or fixed deposits. Withdrawing anytime you want may be allowed but you'd get next to nothing in return. With Bitcoin, if you suddenly need the money, you can sell it anytime and enjoy the profit. With time or fixed deposit, withdrawing halfway through the maturity doesn't mean you'd get the profit so far, which is 50%. The computation would change drastically you might only get less than 1% per annum of interest.

There are other options if you want to diversify. There's gold, for example. There's real estate, which is in a way better than fixed deposits because the property itself is rising in value on top of what you could earn from it regularly.

[Catenaccio]

This is the problem with time or fixed deposits. Withdrawing anytime you want may be allowed but you'd get next to nothing in return. With Bitcoin, if you suddenly need the money, you can sell it anytime and enjoy the profit.

Building up a long term investment portfolio is important for wealth building but there are super important tasks of building up a strong and safe finance background, as well as plan for gradual profit withdrawals over time.

The gradual profit withdrawals over time can be used for enjoying life or enhancing emergency fund which can avoid risk of selling part of your bitcoin if your available emergency fund is not enough.

[ANN] JJG Sustainable Bitcoin Withdrawal Strategy.

[Solokan]

In my opinion, if you plan to use the interest earned from a company or bank's DPS, there's no problem. In fact, it's actually very good. You'll certainly have the potential to really enjoy long-term investing in BTC. If you use interest, you'll certainly feel comfortable investing in BTC. Most people who fail in long-term investing in BTC do so because they use money they can't afford to lose.

Investing in BTC does carry risks because we don't know what will happen to BTC in the future. However, BTC has never disappointed those who hold BTC for the long term. So, I think the decision is yours. The title of this topic is "bank or BTC." In my opinion, it would be wiser to choose between banks and BTC.

[m2017]

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% .

And what is the actual inflation rate in your country? Yes, of course, it is better to keep your money in the bank and earn at least some interest than to simply keep it in a piggy bank and earn nothing (but even here, I would give it serious thought, because you are handing your money over to someone else; if you were to need those funds urgently, say, for a lucrative investment opportunity, you wouldn't be able to withdraw them from the bank account due to the terms of the agreement). Still, I wouldn't try to make money this way, through passive means, because money is a very poor store of value (due to inflation).

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.

What about investing a portion in altcoins? Under the right circumstances, returns could exceed 2x -3x. Also, you don't necessarily have to wait four years; can shorten that timeframe by investing, say, a year or two before the bull run begins (you can estimate the timing by looking at past cycles), while the bitcoin are still relatively cheap.

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

It seems to me that this method might take too long (in terms of accumulating bitcoins), but overall, it fits the DCA strategy, where you channel the interest earned on a bank deposit into monthly investments in bitcoin.

To be honest, though, I wouldn't choose that approach now (I might have preferred that scenario as a beginner, when I had less understanding of and faith in bitcoin). In my view, it is better to invest directly in bitcoin, bypassing the intermediate stage of a bank deposit; this allows to offset the impact of inflation and benefit from purchasing bitcoin at a lower price (if buy during a market dip).

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

If you want to see concrete figures, then turn your idea into reality.

[Bitcoin_people]

If you deposit money in FDR and DPS, they will give you an amount of interest according to that amount from which you will get a good amount at the end of the year. But as you have imagined, I think this is a completely wrong idea because, you are thinking of earning more money for free from the money you get for free when you invest in Bitcoin with interest money. But in reality, the interest you are getting is not free at all, rather the bank is using your money and giving you interest in return. But no matter where you invest your capital, you will definitely get interest from there and you will benefit from it.
When you invest in Bitcoin with the interest you get from the bank, if your plan is to invest for a long time, when the market moves forward according to the four-year cycle, you will benefit. If you invest $1000 in a year, then if the bull run starts, you can get two to three times the profit, but you also have to remember that if the market falls by 50%, your capital will also come down by half.  But I think that instead of investing your capital in the bank, if you have the ability to take risks and have the courage to hold on for a long time, if you invest $10,000 in Bitcoin, you will see a profit several times over when the bull run starts.

[Brizi5000]

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.

Good idea since you have already receiving interest from your bank which is good and the interest is being used to accumulate bitcoin without financial stress anymore, anyway can't tell your interest amount , but if it is necessary that one has to choose between a bank  and bitcoin, then I will choose Bitcoin since it is not affected by inflation and devaluation or any economy challenge but an edge over inflation.

Bitcoin still remains the best in savings with a high reward at the end of your holding period irrespective of how little or much you have in your portfolio, bitcoin does not depreciate over time but appreciate and that is why we now see alot of persons heading towards having bitcoin.

For sure BTC will be more than appreciated than Bank especially on the long run even though there’s no guarantee of profit but past reports have shown that it has a potential of rewarding long term investment. It largely depends on your level of risk tolerance, if there’s an extra money to spend and willing to let go for many years then BTC would be the best investment for such cash rather than Bank. Regular DCA with a discretionary income will help you to keep accumulating BTC and HODL comfortably to improve your portfolio because it’s better to have a decent amount of BTC in ones portfolio than having less as the rewards are not the same.

[Perfectbaby]

There is no day you would compare bank to bitcoin investment, in fact what you must understand about bitcoin is that you must have to be patient enough to make sure it yields a better interest for you and you must also choose a better investment plans for instance; you may hold for longer periods of time, such as either 12 years and above to give you a better ROI. But in bank, they could be given you interest on monthly basis but again they still would be the one to collect some fee as a bank maintenance fee from your interest. In bitcoin you would never experience such and only when you would want to make transfer that you would be charged some cent from your transaction.

[YellowSwap]

Don't  make stupid decisions all in the name of interest, I understand that some people are living on interest like a man I know who happened to have a lot of money fixed and making good amount from it every month to survive.

It is working so far and it's been few years but let's leave Fiat things for Fiat things, it's where banks comes in and also some interest platforms around the world but do not toy with your Bitcoin.

Keep your Bitcoin away from the banks, Bitcoin investment is far more reliable because you control the key, your money in the hands of banks isn't in your control, atleast treat Bitcoin like your spinal cord, your soul backbone of investment and let your fiat do this.

[Tongley]

Don't  make stupid decisions all in the name of interest, I understand that some people are living on interest like a man I know who happened to have a lot of money fixed and making good amount from it every month to survive.

It is working so far and it's been few years but let's leave Fiat things for Fiat things, it's where banks comes in and also some interest platforms around the world but do not toy with your Bitcoin.

Keep your Bitcoin away from the banks, Bitcoin investment is far more reliable because you control the key, your money in the hands of banks isn't in your control, atleast treat Bitcoin like your spinal cord, your soul backbone of investment and let your fiat do this.

Why would a person make a foolish decision for some amount of interest? Because now if a person keeps their money in the bank for a small profit, then he will definitely miss out on a lot of big opportunities in the future. For example, if he invests in Bitcoin now and holds it for a long time, then he can definitely get a big profit according to the current demand. But if he does not buy Bitcoin now and keeps it in the bank for interest, then he is definitely doing something foolish. To get something big, you have to ignore something small.

The main purpose of creating Bitcoin was to remove third-party interference from financial management and have complete control over financial management. If a person buys Bitcoin and keeps all his Bitcoin in the bank, then what is the reason for buying Bitcoin. Buy Bitcoin and keep it secret to yourself, if you do not tell anyone that you have Bitcoin, then no one will know that you have Bitcoin.

[Clearnet]

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.

Even in the bitcoin community, there would be some folk left who were managing their assets wisely before bitcoin was a thing. I liked the explanation from d500, he clearly explained how I should approach . If you love something, taking benefit from bitcoin does not mean you are going to give a biased answer for bitcoin.

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.

yes the only tax I would need to pay is 10%  on the interest I am getting.

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.

22% for a short-term lockup might be a promotional offer. But 18% interest is a lot, according to my country. Since your inflation is too high, you would know the actual difference.

Bitcoin is basically like a bank already, therefore there is no need for an actual bank anymore. And If I am going to diversify my funds, I will only do it on other investment instruments, so that they don't share the same risks. High interest rate alone cannot convince me to choose traditional banking, I mean, if in future, there could be a possibility of decentralized bank which deals with fiats, then I may consider and definitely not with the current traditional banking.

Yet I still need to pay from bank when I am buying my grocceries. Bitcoin is a good alternative option but it did not get that much popularity that you can pay your daily neccessary with the Bitcoin itself.

Let's assume that the average inflation rate for 7years is 8%,
And if you happen to invest 100k in your currency with 11.5% return annually,
That would more than 200k in 6-7years, but it's purchasing power would be around 130k in todays value.

You indeed double your money (in numbers), but the issue is its purchasing power after 7 years.

Let's assume I have invested my money in Bitcoin, and it goes from 100k to 200k. When I cash out, am I getting any extra money for inflation? cause in your opinion, Bitcoin is a guard for the inflation, and Bitcoin doesn't experience the effects of inflation. My bitcoin amount is sitting on 1 BTC, it is not increasing to 1.1, so basically the same theory can apply here, it is a misconception of yours.

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.

What about investing a portion in altcoins? Under the right circumstances, returns could exceed 2x -3x. Also, you don't necessarily have to wait four years; can shorten that timeframe by investing, say, a year or two before the bull run begins (you can estimate the timing by looking at past cycles), while the bitcoin are still relatively cheap.

It is much riskier than bitcoin , If I would have consider this much risk with my portfollio than I would not have considered a safer investment through bank over bitcoin.