Topic: Advantages of Bitcoin over fiat and local banks - page 3. (Read 616 times)
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If you want to read the crazy experience I also had with the financial institution that I am banking with, then you can read this thread. Basically, there are some drawbacks to most of those centralised organizations. Bitcoin helps to cover some of those drawbacks, and that's why it's wise if some non-Bitcoiners out there can realise how advantageous it is to use Bitcoin. Also, in the banking system, the annual percentage yield on investment is usually small compared to how profitable Bitcoin investment can be even in a short period of time, but that's if the market is bullish.
Basically there are numerous benefits which BTC provide us over local banks and fiat. For example in fiat we have the benefit of hedge against inflation, we can store our valuable assets for longer term while securing the value. Fiat has to be secured some where safe if kept physically and if in banks then choice of banks must be good like bankruptcy of banks is not something uncommon.
Point is, the benefits are a lot but to keep the importance of BTC short I can say I am agree with your factors but there are more on the list like scarcity, decentralization, anonymity etc.
You basically defined all the basic flaws banks and local currency have while BTC do not have them. In BTC we have the full control over our own money which in it self a hard task and can not be fulfilled or completed by someone who is so irresponsible. But harsh reality to this fact is we are still dependent on banks as we can not avoid them unless we have direct physical p2p traders whom we can trade face to face but most of the people do not even think about it and second is those who have access to BTC ATMs.
Bitcoin gives us unprecedented freedom from traditional banking institutions. However, we stay in these structures because they're convenient or necessary. I know this issue is two-sided.Point is, the benefits are a lot but to keep the importance of BTC short I can say I am agree with your factors but there are more on the list like scarcity, decentralization, anonymity etc.
You basically defined all the basic flaws banks and local currency have while BTC do not have them. In BTC we have the full control over our own money which in it self a hard task and can not be fulfilled or completed by someone who is so irresponsible. But harsh reality to this fact is we are still dependent on banks as we can not avoid them unless we have direct physical p2p traders whom we can trade face to face but most of the people do not even think about it and second is those who have access to BTC ATMs.
The "bankruptcy of banks" you mentioned demonstrates a huge problem in our financial systems. Like a safety net with holes, you may get caught but not always. Compare that to autonomous, scarcity-based Bitcoin. The ability to govern Bitcoin is both its strength and vulnerability. Control is a burden not everyone can handle. This may explain why many have been slow to adopt BTC.
BTC ATMs and peer-to-peer trade arent the norm yet, but they might be. Its like giving a car-only driver a rocket. Cool idea, but hard to navigate. Change takes time, so additional education and infrastructure may help close the gap.
Financial freedom is not the same as financial security. Bitcoin gives you control, but its value is not stable, it's not backed by something that you can predict. Bitcoin showed great performance in the past, but there is no proven model that can guarantee same performance in the future. Or even good performance. You can say that fiat can crash too and be right, but any asset can crash. So the key to managing wealth is diversification between many different uncorrelated and reliable assets, instead of going all in on one thing.
The first two of the benefits were less likely to be utilized by Bitcoin holder, especially the newbie. They don't yet have the knowledge to use non-custodial wallet where they have full control over their own fund, most of them stored it in an online wallet, or worse some of them even store bitcoin in the centrailzed exchange wallet.
Newbies can learn so eventually they can take advantage of the first two benefits. Bitcoin users aren't stuck on the first day of their experience, they eventually grow and become knowledgeable, Many newbies who are just starting out also learned the importance of using a non-custodial wallet and the information about it is not a secret. It is scattered in the internet with many articles and sites explaining about them. Aside from that, those who guide these newbies also share the importance of non-custodial wallets so I believe we should not think that newbies are not knowledgeable about the basics of Bitcoin.
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Cost-Efficiency: Unlike banks, Bitcoin doesn't burden you with monthly maintenance fees, card maintenance costs, or hidden charges.
In return, Bitcoin charges with transaction fee whenever we send our Bitcoin. While banks transfer within the same banks doesn't require any fee. With this, Bitcoin shines because of its boundless transaction that is way cheaper than the international bank transfer.
Basically there are numerous benefits which BTC provide us over local banks and fiat. For example in fiat we have the benefit of hedge against inflation, we can store our valuable assets for longer term while securing the value. Fiat has to be secured some where safe if kept physically and if in banks then choice of banks must be good like bankruptcy of banks is not something uncommon.
Point is, the benefits are a lot but to keep the importance of BTC short I can say I am agree with your factors but there are more on the list like scarcity, decentralization, anonymity etc.
You basically defined all the basic flaws banks and local currency have while BTC do not have them. In BTC we have the full control over our own money which in it self a hard task and can not be fulfilled or completed by someone who is so irresponsible. But harsh reality to this fact is we are still dependent on banks as we can not avoid them unless we have direct physical p2p traders whom we can trade face to face but most of the people do not even think about it and second is those who have access to BTC ATMs.
Point is, the benefits are a lot but to keep the importance of BTC short I can say I am agree with your factors but there are more on the list like scarcity, decentralization, anonymity etc.
You basically defined all the basic flaws banks and local currency have while BTC do not have them. In BTC we have the full control over our own money which in it self a hard task and can not be fulfilled or completed by someone who is so irresponsible. But harsh reality to this fact is we are still dependent on banks as we can not avoid them unless we have direct physical p2p traders whom we can trade face to face but most of the people do not even think about it and second is those who have access to BTC ATMs.
One of my favorite aspects of Bitcoin is how its deflationary. There can never be more than 21 million Bitcoin in supply. But it is always possible for there to be less (forever lost wallets, for example).
The value of each Satoshi would only go upwards if the world adopted Bitcoin as a legal tender. Which it will. I cannot wait for that day.
As a crypto enthusiast, I would love to see countries accept Bitcoin as legal tender but I wish there should be any day as you expect because if you remember The Great Depression (1929-1933) which can collapse the economies of the country so this reason itself can be a cause for the fall of bitcoin.
Bitcoin is good and more decentralized than any other cryptocurrency but imagining it as the only currency used all over the world like thousands of transactions per second, bitcoin is not designed to handle such unless the government creates the infrastructure for that to happen with the L2 layer.
I believe that Bitcoin can handle the negative aspect of deflation, as deflation is only bad for the fiat system and anything that resembles it. Bitcoin on the other hand seems to be perfectly suited to turn deflation into a positive thing. While I completely agree that deflation can be worse than inflation if it is brought in through negative factors (lack of demand or a decrease in efficiency throughout the markets, this does not seem to pose a problem for Bitcoin as Bitcoin is being constantly updated, both technologically as well as economically. This insures an proportional increase in efficiency. And as you said, L2 layer is merely another addition to Bitcoin which proves an increase in efficiency is progressing.
What about the lack of demand? Well in a scenario of Bitcoin being a global legal tender, Bitcoin is government recognized money itself. Bitcoin is not a product or a service. So what lack of demand of money do you see? A decrease in demand? Sure. But Bitcoin that decrease is compensated by the incentive of profitable mining after the mining difficulty adjusts to the dropped hash rate.
- investment capital: Investing in Bitcoin offers the potential for long-term profits as its price tends to increase over time. In contrast, traditional banks often do not provide substantial long-term interest on the money they loan out, making Bitcoin an appealing alternative for those seeking high returns on their investments.
Personally, I see this as a reason why more people should adopt Bitcoin. If you do not care about the control of your funds and all the centralized organisations do, you should care about the value of your funds. You should care about how inflation eats deep into your savings.
Bitcoin is like a shield to the devaluation of currencies. With Bitcoin you can keep your money in your wallet and it won't depreciate due to inflation. It carries its own risk, in the sense that Bitcoin price might dip but it's still way better than saving it in a bank for a long time.
The fact that you can save your money and at the same time that savings becomes an investment is a reason to embrace Bitcoin.
With Bitcoin as long as you use a non custodial wallet, you can control your by yourself in your own way. No one will decide what's your maximum and which country you can transfer to.
One of my favorite aspects of Bitcoin is how its deflationary. There can never be more than 21 million Bitcoin in supply. But it is always possible for there to be less (forever lost wallets, for example).
The value of each Satoshi would only go upwards if the world adopted Bitcoin as a legal tender. Which it will. I cannot wait for that day.
As a crypto enthusiast, I would love to see countries accept Bitcoin as legal tender but I wish there should be any day as you expect because if you remember The Great Depression (1929-1933) which can collapse the economies of the country so this reason itself can be a cause for the fall of bitcoin.
Bitcoin is good and more decentralized than any other cryptocurrency but imagining it as the only currency used all over the world like thousands of transactions per second, bitcoin is not designed to handle such unless the government creates the infrastructure for that to happen with the L2 layer.
All your above-mentioned benefits of bitcoin could only be possible if you are not using a custodial service, because if you are using a centralised exchange to store your bitcoins or other currency and you expect things to be different from the banking sector, then you will be mistaken. When talking about the benefit and why it's good not to save on a local bank account, it's almost the same thing as why you shouldn't have funds where you don't have a private key or phrase. NOT YOUR KEY, NOT YOUR COIN Not your control, not your money.
I guess it will be more appreciated if you can outline your statement clearly and differentiate between the use of a custodial system and that of a non-custodial system, as many people see the use of bitcoin and other currencies as the same, irrespective of where they are being saved or used to transact with them.
Can't huge expected when saving Bitcoin assets in exchange wallet because relevant not your key is not your coins, we give full controlling to exchange or third party with our assets when they get collapse like FTX we loss all bitcoin assets. Its really important before talking about advantage between bitcoin and fiat how to give educate for investor use custodial wallet for saving bitcoin fund because have our key and controlling by our self not depend on exchange market. I guess it will be more appreciated if you can outline your statement clearly and differentiate between the use of a custodial system and that of a non-custodial system, as many people see the use of bitcoin and other currencies as the same, irrespective of where they are being saved or used to transact with them.
Have more advantage with bitcoin than fiat, we know inflation values of fiat every years and long term saving assets in the bank will get drop values at the future, difference when saving bitcoin actually with long term investment has chance with our assets increasing depend bitcoin price raise up.
Your perspective highlights the appeal of Bitcoin as a decentralized and transparent alternative for those seeking more control and potential financial benefits. Bitcoin offers a number of features that make it a more attractive option for many people. The potential rewards of investing in Bitcoin are significant, and I believe that it is a worthwhile risk for those who are looking for a more secure and efficient way to store and transfer their money.
What you have said actually indicates two points that everyone differs in when describing Bitcoin.
First, it attracts investors because of the high potential of bitcoin.
Second, the risks in using Bitcoin as a storage medium.
Depending on how you look at it, your approach to Bitcoin is determined. Of course, there are many items other than these two items, but generally people who are new to Bitcoin and are considering investing are stuck between these two situations.
Your perspective highlights the appeal of Bitcoin as a decentralized and transparent alternative for those seeking more control and potential financial benefits. Bitcoin offers a number of features that make it a more attractive option for many people. The potential rewards of investing in Bitcoin are significant, and I believe that it is a worthwhile risk for those who are looking for a more secure and efficient way to store and transfer their money.
Bitcoin is the new bank.
There is no point in trying to argue which banking or Bitcoin is better when Bitcoin is obviously the next-gen bank? Is that not its called "be your own bank?". For some people, it seems time to take that literally.
. Not much point in saying that here for any older Bitcoiners. Really thats just the message for newbie Bitcoiners.
One of my favorite aspects of Bitcoin is how its deflationary. There can never be more than 21 million Bitcoin in supply. But it is always possible for there to be less (forever lost wallets, for example).
The value of each Satoshi would only go upwards, if the world adopted Bitcoin as legal tender. Which it will. I cannot wait for that day.
There is no point in trying to argue which banking or Bitcoin is better when Bitcoin is obviously the next-gen bank? Is that not its called "be your own bank?". For some people, it seems time to take that literally.
. Not much point in saying that here for any older Bitcoiners. Really thats just the message for newbie Bitcoiners.One of my favorite aspects of Bitcoin is how its deflationary. There can never be more than 21 million Bitcoin in supply. But it is always possible for there to be less (forever lost wallets, for example).
The value of each Satoshi would only go upwards, if the world adopted Bitcoin as legal tender. Which it will. I cannot wait for that day.
I understand that anarchic statement and bitcoin = freedom ideas but I dont accept that as a complete cult like thing.
You have be realistic here, the world does not run on bitcoin, but on fiat and for the next years of our lifetime bitcoin will grow but at a slow pace, maybe our next generations might see bitcoin running the economy but I have my doubts and I feel a coexistence will be happening.
Still, I do encourage people to use their bitcoin if possible, but many have the opinion of "never sell only buy" - because buying goods with bitcoin is essentially selling your coins. Like we have seen, bitcoin is freedom and we are free to make our own decisions here.
You have be realistic here, the world does not run on bitcoin, but on fiat and for the next years of our lifetime bitcoin will grow but at a slow pace, maybe our next generations might see bitcoin running the economy but I have my doubts and I feel a coexistence will be happening.
Still, I do encourage people to use their bitcoin if possible, but many have the opinion of "never sell only buy" - because buying goods with bitcoin is essentially selling your coins. Like we have seen, bitcoin is freedom and we are free to make our own decisions here.
The first two of the benefits were less likely to be utilized by Bitcoin holder, especially the newbie. They don't yet have the knowledge to use non-custodial wallet where they have full control over their own fund, most of them stored it in an online wallet, or worse some of them even store bitcoin in the centrailzed exchange wallet.
The presence of BTC serves as an alternative to address the shortcomings of FIAT currency, although not all of FIAT's shortcomings translate into advantages for BTC. While this may be a bitter truth for Bitcoin enthusiasts, we can, at the very least, grasp Bitcoin fairly.
In my country, Bitcoin still cannot be used to purchase goods or services, which imposes certain restrictions and hinders me from exploring its features more freely.One valuable function I have found is the ability to easily pay for services from other countries that my local bank cannot facilitate. This function has truly been a great help to me.
In essence, I use Bitcoin by harnessing it as an investment vehicle and a straightforward means of conducting transactions across borders.
In my country, Bitcoin still cannot be used to purchase goods or services, which imposes certain restrictions and hinders me from exploring its features more freely.One valuable function I have found is the ability to easily pay for services from other countries that my local bank cannot facilitate. This function has truly been a great help to me.
In essence, I use Bitcoin by harnessing it as an investment vehicle and a straightforward means of conducting transactions across borders.
About absolute control, it can only happen if you keep it in self-custodial wallets like Ledger Nano (not opting for the recovery feature), Trezor, Tangem, SecuX and more and not stored in centralized exchanges.
As for hot wallets like the good ol’ Blockchain Wallet, it is still vulnerable to getting exploited and/or hacked because we cannot deny that these hackers are getting smarter and intelligent in their skills and knowledge just t penetrate these wallets being created online even if it means self-custodial. Cold wallets are better for storing Bitcoin.
As for hot wallets like the good ol’ Blockchain Wallet, it is still vulnerable to getting exploited and/or hacked because we cannot deny that these hackers are getting smarter and intelligent in their skills and knowledge just t penetrate these wallets being created online even if it means self-custodial. Cold wallets are better for storing Bitcoin.
In the comparison between Bitcoin and fiat currency, Bitcoin stands out for its potential to grant individuals greater power and control over their assets, thanks to its decentralized nature and transparent blockchain technology. It offers accessibility to a global reach and also has a limited supply, which some can see as a hedge against inflation.
However, I believe that Bitcoin is also marked by significant volatility, limited acceptance for everyday transactions due to its mining process, a lack of regulation that can lead to risks. Whether Bitcoin is a better choice than fiat currency depends on individual preferences, risk tolerance, and financial goals. Diversification and informed decision-making remain important aspects of managing one's finances.
However, I believe that Bitcoin is also marked by significant volatility, limited acceptance for everyday transactions due to its mining process, a lack of regulation that can lead to risks. Whether Bitcoin is a better choice than fiat currency depends on individual preferences, risk tolerance, and financial goals. Diversification and informed decision-making remain important aspects of managing one's finances.
If you are holding Bitcoin in a non-custodial wallet then congrats, you have raised every third-party eye from your worth, including Banks and your Government, I am no more a fam of Fiat since I knew about Bitcoin years ago, I hardly use Fiat or keep money in the bank now, unless I need some things to buy, that's when I consider using peer to peer platform to convert my Crypto back to Fiat.
There are few local banks in my country right now that are somehow stealing from people, there are few people that have been saving their money in these banks for years and maybe the Bank thought they are dead, these people came back from the U.S. and they found out that their account balance is empty.
At first I thought the victims are responsible for this, maybe someone managed to get access to their bank account online and start moving their money, but after some legal steps involving the law and some powerful people, to my surprise the Bank said the fault is from them, that they will refund every penny, imagine, I will never trust my money with the Banks, this habit is growing in numbers over here.
There are few local banks in my country right now that are somehow stealing from people, there are few people that have been saving their money in these banks for years and maybe the Bank thought they are dead, these people came back from the U.S. and they found out that their account balance is empty.
At first I thought the victims are responsible for this, maybe someone managed to get access to their bank account online and start moving their money, but after some legal steps involving the law and some powerful people, to my surprise the Bank said the fault is from them, that they will refund every penny, imagine, I will never trust my money with the Banks, this habit is growing in numbers over here.
I have also experienced this incident with the mobile banking application and it was very disturbing. There is something even worse that has happened when dealing with banks, namely long queues. Every time a customer experiences a problem, there is always a soft voice that comes from the officer's lips, be patient, sir. Soon everything will go back to normal.
I hope this will also be shared with friends who can be discussed so that all the advantages of Bitcoin can be known to them and from them information about the advantages of Bitcoin can also be spread widely again because currently we really need parties who explain to people that Bitcoin is a breakthrough towards the independence and freedom of the financial system.
- Absolute Control: Bitcoin empowers you with complete control over your finances, eliminating the need to rely on third parties
- Unrestricted Access: You can access your Bitcoin holdings at any time, without being subject to arbitrary restrictions
- Enhanced Security: Bitcoin provides robust security measures that surpass the often-vulnerable systems of traditional banks.
- Cost-Efficiency: Unlike banks, Bitcoin doesn't burden you with monthly maintenance fees, card maintenance costs, or hidden charges.
- investment capital: Investing in Bitcoin offers the potential for long-term profits as its price tends to increase over time. In contrast, traditional banks often do not provide substantial long-term interest on the money they loan out, making Bitcoin an appealing alternative for those seeking high returns on their investments.
With the local banks, there's a certain upgrade you'd need to access to allow you store a huge amount of money if you are not using a current account else it would be assumed that the money you own was probably gotten through dubious means and if you can't present proof that you own such amount through honest means, your funds get locked but that's not the same with Bitcoin. I mean, that's if you don't misplace your keys or seed phrases.
The traditional fiat and banks tend to control your every move and go as far as deeming it mandatory to keep you and your funds "safe" whereas it's just a camouflaged way of monitoring you, ridding you of your privacy.
Recently, in my country, social media handles of customers were demanded for and I quote "regulation to prevent crime and terrorism and also to boost the precision and thoroughness of customer verification ". But in Bitcoin, with it's peer to peer network, this doesn't happen.
The traditional fiat and banks tend to control your every move and go as far as deeming it mandatory to keep you and your funds "safe" whereas it's just a camouflaged way of monitoring you, ridding you of your privacy.
Recently, in my country, social media handles of customers were demanded for and I quote "regulation to prevent crime and terrorism and also to boost the precision and thoroughness of customer verification ". But in Bitcoin, with it's peer to peer network, this doesn't happen.
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