Topic: A reminder that with your bitcoin in a cold storage, you can be your own bank (Read 190 times)

That’s actually the best advantage of owning bitcoin because you can have its full control through putting them in your own cold storage wallet. You can do whatever you want without worrying if the banks will approve or not, and you can earn unlimited amount of bitcoin without the interruption of banks like setting your account limited amount of bitcoin to save. This is really giving us freedom over the banks. But apart from this, we should also be responsible of the safety and security of our own account. We should keep it private as much as we can by not disclosing to others that we have bitcoins in our account because that will trigger some scammers to create harm against us so they can steal our coins without our awareness.

Yeah, the masses need to be careful when they are using a centralized system, especially the setting that has to do with the institution.
Having said that, Do you think the millionaire and billionaires that have money on SVB will be affected? Mate,  they won't be affected. Have you ever guessed the reason why the US President set into the issue and also make the statement that tax payers will be saved?

Actually, when a bank as large as the ones mentioned fail, victims do not just include the masses. It may also include billionaires and billion-dollar companies.

Circle, for example, has billions of dollars in SVB when the latter collapsed. There are many others that had millions and billions stuck in the bank. Of course, there are also small depositors who are affected.

The difference, however, is that when these small individual account holders become the victims, they lose their life savings. When billionaires become victims, their lives are unchanged. When large companies lose billion, the CEOs and presidents and owners remain rich.

All I'm saying is that small fishes like us should be extra careful. Our choice between Bitcoin in cold storage and money in a bank account could mean everything to us.

The sad fact about issues like this is that the masses are those that will be affected because most of the billionaires and stakeholders always invested their funds while living on debt to be tax-free so that the government will print more money.
Before issues like this happened to SVB and Credit Suisse. I think people ought to learn when thousands of people in China have their bank deposit accounts frozen.
Although, I was sad for those that were affected but I am also happy either because an issue like this will make people seek the best alternative which is Bitcoin.

Where have you seen that no one is recommending it to anyone? It's recommended for beginners to use trusted custodial platforms till they are educated and fully aware of what they are doing when they are using their cryptos. Because they are very likely to get scammed or to make critical mistakes. Along with that there are people who just don't want or can't easily manage all that stuff. Kraken is becoming a crypto bank for example, because they think it will be the norm to store cryptos there in the coming years. Not all people on Earth are engineers or geeks. https://www.kraken.com/bank

Basically, no one recommends keeping assets on a custodial platform to let your assets be managed by third parties and that is very different from banks because banks have licenses from the government to operate in the field of economic and financial management, but an exchange license cannot be used as a guarantee for the security of assets from investors. . So avoid storing assets on custodial platforms and it is highly recommended to store assets in non-custodial wallets using a wallet application or hardware wallet.

I'm not sure Bitcoin can replace banks unfortunately because people put their funds at banks to avoid keeping large amounts of money at home that could be robbed by burglars or destroyed by a fire or another disaster. With bitcoin it's the same thing, not all people want to always be worried about potential hacks and losing their Bitcoin seed. That's why they prefer leaving their funds on custodial platforms like how they do with banks for their fiat money.

Banks are prone to hacking and failures, the reason why we should not entrust all our funds into banks completely. However, if we can convert some of our funds into bitcoin, that’s much better and we can save them in our personal cold storage wallet to save them from hackers and scammers around. Knowing with bitcoin you can be on your own bank, that gives us bigger advantage as we can take the full control over our bitcoin, leaving banks not allowed to access our bitcoin.

There’s no other way to make it safer than to be with our own bank, and that is clearly not allowing any bank or third party that will make an access to our coins. While this way is more safe and secured, the risk of losing is still there. You could have lost all your coins if you never follow the rules to secure your account. That is the reason you have to take full responsibility of your account so you can lessen the risk of losing your hard earned funds.

Most banks are insured by National Deposit Insurance Corporation which means that the majority of customers might not lose their funds. The US reserve has promised to bail out SVB and cover their debt in other to uphold the integrity of their banks. The shareholders are the people who will lose their investment.

Banks and exchanges will always disappoint their clients because they are controlled by sometimes selfish and inexperienced individuals. Bitcoin and decentralized wallets are two interconnected partners that unveil the true nature and benefit of using the coin.

Some bitcoin investors don't care about its volatility because it is far more stable than their local currency. My local currency has lost close to 80% of its worth and there is no indication that it will rise. I should keep my funds in bitcoin because there is hope that it might rise.

Even though the bank has insurance, but that's not all of the customer's money can be taken. There is a threshold set by the insurance, and this clearly makes it difficult for them, even though we know the bank has the ability to do that there because as big as any bank is if they fail to pay their customers then it will hurt a lot of customers and a big panic will ensue.

Centralized banks and exchanges are completely out of our control so when there is a problem or bankruptcy they will definitely fail to pay customers.

Well I believe more in bitcoin and storing it on hardware it will be much safer, because we ourselves control all of it without any interference.

That’s actually the best advantage when you are hodling bitcoin on your own wallet. You are in full control of your funds, whether to save more of it or withdraw, just being more convenient that in all that you do, there are no third parties that will approve first your deposit or withdrawal so you have all the freedom to enjoy. However, the need to be highly responsible of your own account is at its utmost. Otherwise, if you are always careless and take action without caution, and being irresponsible of your own private keys, eventually you will lost all your coins and leave you with an empty wallet. So we have to be responsible at all cost.

Your reasoning touches only one side of the problem. Keeping money in bitcoin stored in a cold storage also comes with some risks. Do you want to be your own bank? Then be prepared to take personal responsibility for your actions. No one will help you and no one will solve your problems if it arise. No support, no insurance, no compensation and so on. Just you, your btc and a bunch of tasks that you have to solve to ensure safety.

I'm not trying to scare, but I'm trying to draw attention to important nuances. If you don't take them into account and treat your bank negligently, then expect trouble.

This is an exact definition to not your keys not your coins, when you're claiming having something which is obviously yours but in someone's else's possession means you're at risk of the third party unless ut got into your own hands, why will a centralized exchange have my wallet keys in their custody when am trying to avoid this with banks and yet fall into the hands of exchanges? once I've been wise to know that my wallet should only possess my access only, choosing bitcoin isn't the entire process to decentralization except you have your keys with you by using a non custodial wallet.

Some didnt realize that yet but now that a big incident occure in one of the largest banks. Maybe some consider the storage of crypto that holds their own key but their problem most likely is the value its not constant and stable. Unless stablecoin can be considered as decentralized as btc. Cause for bitcoin it is decentralized but these people wont surr about its volatility it can go up in value or go down anytime.

To those of us who have knowledge of crypto, we all like being in charge of both funds and security, which has always been the best for us and has resulted in lots of savings, especially when one has a hardware wallet, which is top rated when it comes to wallet security. 


Having your money in the bank and allowing someone else to hold it for you are kind of the same thing, but they are to some degree different. Most people run to the bank to be safe, not just because they want to keep their money with a financial institution or someone who can hold it for them. But they believe the banking sector is safer than having your money stockpiled in someone else's hands. The reason being that banking sectors are legal and fund saving is among their primary purposes, and as such, they can't tempt customers with their money apart from their own if the law isn't against them. I believe this and a few other reasons are the major reasons people trust the banking system.


Yes, this is also another reason why customers believe their money is always safe in the hands of the bank, but insurance companies don't pay all insurance claims; there is only a certain percentage that they can pay to reduce the amount of loss that the bank incurred. This insurance policy can't even, at some point, pay off 50–80% of the affected customers. The customer is always the victim, which is why the investors, to some point, always get back their investment. 

That is cool! we must be able to become our own bank and the bitcoins that are owned must be in full control by us including storing them in Cold Storage we will be safe and there will not be misery.

With this news, SVB and Credit Suisse, many customers are panicking, at least their funds will definitely be frozen because we have no control, even though we are the owners of the money, most of the time, many banks fail and eventually collapse, they cannot pay customers. because failing to run this is really terrible if it happens to us, now I better believe in bitcoin to store bigger assets and Cold Storage is a safe place for these assets.

I don't want to defend banks, but SVB and Credit Suisse's customer can claim his money back since there's an insurance company can backup the banking bankruptcy isn't? it's different with the centralized exchange or platform collapse where you have no way to claim back your funds.

But it's obviously better to store your wealth in Bitcoin, because you're the one who have full control over your coins as long as you're hold it on non custodial wallet.

Not necessarily there is need for cold storage for everyone, just a commoner with few hundreds or thousands worth of cryptos can opt for loght weight wallet or HW if they can afford to spend $100 or little more.

Many small banks are suffering since the covid and multiple waves because they can't maintain the liquidity since many people are withdrawing and not much people have funds to deposit so an average middle class people should understand the risks of giving our money in the hands of trusted third parties so called banks cause they also bankrupted and they won't pay you completely and that is what their policies say which we signed while the creation of a bank account.

You can have your own bank if you have its key. With Bitcoin, it is private key of mnemonic seed.

Hot or cold wallet, if you have key, you own that is your own bank.

Cold wallet is better than hot wallet and you can use multi signature wallet or hardware wallet too.

Saying you only can be your own bank if you store your coin in a cold wallet is not correct.

Have your own bank does not means you own anything valuable. If Bitcoin becomes insolvent, your bank is still your bank but you only a zero valued asset.