Topic: Advantages of Bitcoin over fiat and local banks - page 4. (Read 616 times)

There is no difference between storing assets on centralized exchanges and banks, even I think the opposite, storing assets on centralized exchanges is a lot more risky than deposit money in the bank. In short, there is no big difference between these two as it is no longer your money, you are no longer in full control of it.

I do not agree with the idea of leaving money on exchanges but I cannot deny that we still need to use CEX and banks. They are still useful to us in many use cases.

The another thing is privacy and saving time, you have a choice to become anonymous. Saving time, you don't have to wasting your time to communicate with the banks employer, especially when you move big amount of money or they detect there's suspicious activity in your account.

In terms of assurance, there's no company will back up Binance in case of bankruptcy due not regulated by government. While banks are still prone to bankruptcy, but FDIC will cover it although there's a maximum amount they can afford.

There are still people who dont get it and are so used to their FIAT financial providers
that they dont forsee any problems.

Using a bank is conditional
Access to the buildings is limited, if we have a query and need a member of staff to clarify
something it will only happen during business hours. They can easily decide to hold back
our FIAT and restrict our access to it.

The OP has listed everything positive Bitcoin has to offer to counter the FIAT system its
just that paying for goods and services is not widespread yet.

Also - dont forget Bitcoin is borderless!

I remember once, not long time ago, when I taught my uncle that, when you deposit money in a bank, you lose the possession of your funds and get, instead, a right to get it back. But, if problems arise (like in Argentina with the "corralito", for example) you may not be able to demand the fulfillment of said right. That doesn't happen if you manage to keep the custody of your money, which was not possible until now (due to risks attached to having big sums of money in your home, for instance), thanks to Bitcoin and other cryptos.

Of course, if you keep your funds in a centralised service, you are not changing anything, and it could be even worse because jurisdictions where they are registered are usually softer than usual.

Many have said here in the forum that it is not good to store Bitcoin on centralized exchanges, even though it is one of the top exchanges in this field. It's been years since I read such words of warning in the communities here, and I don't see anything wrong with this warning.
That's why we can't stop others from storing in centralized exchanges like Binance; even I have some stored in this exchange, but it's not a big amount, because it depends on trust and belief in the exchange. Also, this Binance exchange has been in the business industry for a few years. I would rather store here at this exchange than at the bank, to be honest.

I get your point @Nwada001 but It has never been advisable to store your funds in exchanges that are centralized. Bitcoin has a decentralized system, but it all depends on how you choose to store your Bitcoin.both the centralized and decentralized exchanges has different futures and functions thus many people has different choice depending on what best suits them. The banking system offers you less choice as compared to what Bitcoin system has to offer.

We should that this is what bitcoin offers to us by giving us the desired control over our finances, but it's something worth being pity for when you discover that some bitcoiners doesn't still make use of this same advantage from using bitcoin when they decided to make use of a custodial means to store their bitcoin, it makes no difference as using a bank except you're using a non custodial wallet.


When you owe your coins on your wallet, then they belongs to you because you have the keys to the wallet to access tour bitcoin on the blockchain, you dont need an authorization from any financial institution, government or any third party before you can make any use of your funds.


The security is simple to practice, make use of a non custodial wallets, a good example is in cold storages, about bitcoin being cost effective, you can modify the amount you wat to be charged for your transaction or even make use of the mempool to track the fee rates.

You will have absolute control over your finance or Bitcoin if you don't keep your money in exchanges. You have control over your Bitcoin if you own and control the keys to your wallet. Unrestricted access is also associated with using a decentralized wallet because KYCs in exchanges can hinder access.

Keeping your Bitcoin safe depends more on you than the Bitcoin system. You have to learn basic privacy and security practices to keep your money safe. Your wallet is more prone to attack, so you have to learn how to protect your wallet.

Bitcoin transactions are less expensive if you adopt other transaction methods such as the lightning network. Compared to some bank charges, Bitcoin transaction is cheaper.

It is better to keep Bitcoin for a long time than to keep fiat. Due to inflation, some currencies will become worthless if you keep them for a long time. Bitcoin offers a better long-term investment option because is a hedge against inflation and is profitable in the long run.

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.

In recent weeks, I encountered a frustrating experience with my local mobile banking app. At first, I thought it was a mere network issue preventing me from accessing my fiat currency because it kept on giving me the network error notice. However, after numerous attempts and no resolution, it became evident that the problem was far beyond connectivity.Upon reaching out to customer support, they promised to resolve the issue immediately but these promises were left unfulfilled. I then decided to visit the app store may be I could get some updates but upon getting there, I met series of similar complaints from fellow users.
This experience made me realize something very important I taught of sharing. When we keep our money in these banks, they have access to accounts and use our money however they want. It's a clear reminder that depending on these institutions for our financial safety might not be the smartest idea.For this reason, I extend my gratitude to Satoshi Nakamoto for pioneering a financial revolution that grants us true autonomy over our funds.Bitcoin offers a viable alternative that liberates us from the clutches of banks that claims to safeguard our savings while exploiting them through loans and various fees. some reasons Bitcoin will always be better than the fiat currency are

• 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.

Embracing Bitcoin represents a step towards financial liberation, where you determine the fate of your money, not faceless or third party institutions. for those out there who still have doubts about Bitcoin, I think it's high time you reconsider where you place your funds. Bitcoin, with its decentralized and transparent nature, is a compelling choice.