Bank Interest VS Bitcoin profits - page 2.

AK47-

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Quote from: pungopete468 on September 03, 2017, 09:40:09 PM

Quote from: 949miner on September 03, 2017, 08:59:54 PM

Quote from: bamboylee on August 31, 2017, 01:51:46 PM

Quote from: BitHodler on August 24, 2017, 05:55:12 PM

Quote from: marcuslong on August 23, 2017, 04:37:24 PM

Banks can only offer you 3-5% percent of your deposit while in bitcoins there's no limit of the percent of you can earn from stocking them in your bitcoin wallet

Not sure where you are located to have banks offer you such high interest rates, but there is a difference when it comes to generating interest and storing your coins in your wallet.

The interest you generate from banks will be stacked up on top of your initial savings deposit, while if you store/hodl Bitcoin for whatever time period, you don't actually gain anything until you start cashing them out.

In that exact same way, if the price happens to go down, you also won't lose anything until you cash out. Till that time, everything you 'lose' or 'gain' will be nothing more than a result on paper, and thus not effective.

It is true that what you gain in hodling bitcoin is paper value but it is still a upper hand than just relying on what interest the banks give you on your deposit amount. Banks do not give interest higher than inflation rate, so you actually lose value of money over time. While bitcoin gives above inflation rate interest. Though it is paper value, you can choose to cash out interest anytime you wanted.

Maybe you are right with that, bitcoin can give more profits than banks.. But when you invest into a bank you know that you are never gonna lose your money.
When you invest in bitcoin, you only invest the most you can afford to loose, and when you are gonna invest into a bank, you dont invest "$100" you have to invest a good amount of money because if you dont, then you are gonna earn pennies every month.
So in a bank you can invest 1 million dollars and you know that you are never gonna lose them... but the return is too low.

If a person has one million dollars to invest then he will surely invest in banks and won't take a risk of investing in bitcoins as even if he is getting lower returns from bank he is sure that he will surely get certain percentage of profits from it and a person who don't want to take higher risk will never invest higher capital in bitcoins.

This is just so obvious. Person who isn't ready to take risk won't invest in a volatile asset and definitely won't earn good returns if he plays safely. Investments are all about risk. Higher the risk, higher will be the profit and vice versa. But I tend to keep Bitcoin in low risk zone because of its past growth. Bitcoin has risen year after year. With some patience anyone can escape loss. Dip stays for short term and there is always an uptrend after that. Also there must be some people who have invested millions in Bitcoin.

pungopete468

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Quote from: 949miner on September 03, 2017, 08:59:54 PM

Quote from: bamboylee on August 31, 2017, 01:51:46 PM

Quote from: BitHodler on August 24, 2017, 05:55:12 PM

Quote from: marcuslong on August 23, 2017, 04:37:24 PM

Banks can only offer you 3-5% percent of your deposit while in bitcoins there's no limit of the percent of you can earn from stocking them in your bitcoin wallet

Not sure where you are located to have banks offer you such high interest rates, but there is a difference when it comes to generating interest and storing your coins in your wallet.

The interest you generate from banks will be stacked up on top of your initial savings deposit, while if you store/hodl Bitcoin for whatever time period, you don't actually gain anything until you start cashing them out.

In that exact same way, if the price happens to go down, you also won't lose anything until you cash out. Till that time, everything you 'lose' or 'gain' will be nothing more than a result on paper, and thus not effective.

It is true that what you gain in hodling bitcoin is paper value but it is still a upper hand than just relying on what interest the banks give you on your deposit amount. Banks do not give interest higher than inflation rate, so you actually lose value of money over time. While bitcoin gives above inflation rate interest. Though it is paper value, you can choose to cash out interest anytime you wanted.

Maybe you are right with that, bitcoin can give more profits than banks.. But when you invest into a bank you know that you are never gonna lose your money.
When you invest in bitcoin, you only invest the most you can afford to loose, and when you are gonna invest into a bank, you dont invest "$100" you have to invest a good amount of money because if you dont, then you are gonna earn pennies every month.
So in a bank you can invest 1 million dollars and you know that you are never gonna lose them... but the return is too low.

If a person has one million dollars to invest then he will surely invest in banks and won't take a risk of investing in bitcoins as even if he is getting lower returns from bank he is sure that he will surely get certain percentage of profits from it and a person who don't want to take higher risk will never invest higher capital in bitcoins.

949miner

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Quote from: bamboylee on August 31, 2017, 01:51:46 PM

Quote from: BitHodler on August 24, 2017, 05:55:12 PM

Quote from: marcuslong on August 23, 2017, 04:37:24 PM

Banks can only offer you 3-5% percent of your deposit while in bitcoins there's no limit of the percent of you can earn from stocking them in your bitcoin wallet

Not sure where you are located to have banks offer you such high interest rates, but there is a difference when it comes to generating interest and storing your coins in your wallet.

The interest you generate from banks will be stacked up on top of your initial savings deposit, while if you store/hodl Bitcoin for whatever time period, you don't actually gain anything until you start cashing them out.

In that exact same way, if the price happens to go down, you also won't lose anything until you cash out. Till that time, everything you 'lose' or 'gain' will be nothing more than a result on paper, and thus not effective.

It is true that what you gain in hodling bitcoin is paper value but it is still a upper hand than just relying on what interest the banks give you on your deposit amount. Banks do not give interest higher than inflation rate, so you actually lose value of money over time. While bitcoin gives above inflation rate interest. Though it is paper value, you can choose to cash out interest anytime you wanted.

Maybe you are right with that, bitcoin can give more profits than banks.. But when you invest into a bank you know that you are never gonna lose your money.
When you invest in bitcoin, you only invest the most you can afford to loose, and when you are gonna invest into a bank, you dont invest "$100" you have to invest a good amount of money because if you dont, then you are gonna earn pennies every month.
So in a bank you can invest 1 million dollars and you know that you are never gonna lose them... but the return is too low.

strunberg

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Quote from: SushiMonster on September 03, 2017, 08:46:06 PM

Quote from: abstractednerve on September 03, 2017, 07:53:07 PM

The interest paid by banks is too low and inflation rate in my country is on the moon so there is no point in saving money in banks as it will never give me a feeling of getting some returns so I will go for investing money in bitcoins and saving it in my bitcoin wallet as over a period of time it will surely give me higher returns in compare to bank interest.

True, in our country the interest banks gives in saving accounts are just around 0.25%, by the end of the year it's just really little.
With bitcoin, trading gives us a better percentage on earnings - you just have to learned the strategy and get updated on the bitcoin price cap.
For young people - bitcoin is a great start to be knowledgeable in trading and investing. I actually learned a lot about the economy thanks to this forum!

Even if you don't trade and simply hold your bitcoins for future even though it will give you higher profits in compare to saving money in banks and if you have good knowledge of trading then its good to invest some money in it and try to grow your bitcoins over a period of time by making regular profits.

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Quote from: abstractednerve on September 03, 2017, 07:53:07 PM

The interest paid by banks is too low and inflation rate in my country is on the moon so there is no point in saving money in banks as it will never give me a feeling of getting some returns so I will go for investing money in bitcoins and saving it in my bitcoin wallet as over a period of time it will surely give me higher returns in compare to bank interest.

True, in our country the interest banks gives in saving accounts are just around 0.25%, by the end of the year it's just really little.
With bitcoin, trading gives us a better percentage on earnings - you just have to learned the strategy and get updated on the bitcoin price cap.
For young people - bitcoin is a great start to be knowledgeable in trading and investing. I actually learned a lot about the economy thanks to this forum!

abstractednerve

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The interest paid by banks is too low and inflation rate in my country is on the moon so there is no point in saving money in banks as it will never give me a feeling of getting some returns so I will go for investing money in bitcoins and saving it in my bitcoin wallet as over a period of time it will surely give me higher returns in compare to bank interest.

DjTremor

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Comparing bank interest and bitcoin profits is just meaningless for me. Bank interest rate is low in USA, Japan, Switzerland and similar nice countries. So you can't earn money with bank interest. When you realize bitcoin, its return is thousand times better than bank's.

tweetbit

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Thats is an example of how the banks works, that's why we're here out of the box solutions just to separate ourselves from central banks. I thinks 7000$ profit at that time is enough, but if those had happened at 4700$ for one bitcoin there will be a different story but don't get me wrong it is still a big profit and we do have choices and I respect yours and your friend.

BitcoinVSfiat

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I have 30k USD in my bank account and I get only %10 interest per year. I'm very regretful about that, if I hold Bitcoin I could've got 100k USD already this year. But you never know, in bull market everybody wins. In bear market most people lose. Bank interest is guaranteed profit, even though it's very low. Considering inflation rate you get nothing for your money in bank account. I believe in Bitcoin. I have some that I never touch in offline wallet. In the future it will be my retiring fund. None of these banks can give this type of profit.

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Quote from: ASHLIUSZ on August 31, 2017, 03:28:51 PM

Quote from: giantrobot on August 31, 2017, 01:37:31 PM

Quote from: bajing on August 31, 2017, 10:56:28 AM

If i must to make a comparison then I think it is more profitable to save money in the form of bitcoin than to saving money in the bank. actually saving money in the bank is not bad even they give a small profit from interest but they can give you a guarantee, your money will be safe at there.

Banks can not compare with bitcoin, because the profits from them are fixed and long term, so they only give a very low rate. Conversely, with bitcoin, profits are generated quickly, but we do not have any legal factors to secure our money.

Yes, with banks the interest for the savings has been credited based on the holding time period. In most of the schemes what the user gets at the end of the day is very very small compared to the one that an user gets through bitcoin just on holding. Maybe for the security concern bitcoin might be lacking.

It will depend on how we control our wallets ,security of btc were proven to be safe now and does have lot's of way to implement security sepending on what wallet we used. As per the existence btc wull nevee crash now since it is supported by biggest companies unlike bank even there are comapanies who supported it it still tends to crash,saving on it is a headache since instead of having additional savong little by little it will gone.

ASHLIUSZ

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Quote from: giantrobot on August 31, 2017, 01:37:31 PM

Quote from: bajing on August 31, 2017, 10:56:28 AM

If i must to make a comparison then I think it is more profitable to save money in the form of bitcoin than to saving money in the bank. actually saving money in the bank is not bad even they give a small profit from interest but they can give you a guarantee, your money will be safe at there.

Banks can not compare with bitcoin, because the profits from them are fixed and long term, so they only give a very low rate. Conversely, with bitcoin, profits are generated quickly, but we do not have any legal factors to secure our money.

Yes, with banks the interest for the savings has been credited based on the holding time period. In most of the schemes what the user gets at the end of the day is very very small compared to the one that an user gets through bitcoin just on holding. Maybe for the security concern bitcoin might be lacking.

bamboylee

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Quote from: BitHodler on August 24, 2017, 05:55:12 PM

Quote from: marcuslong on August 23, 2017, 04:37:24 PM

Banks can only offer you 3-5% percent of your deposit while in bitcoins there's no limit of the percent of you can earn from stocking them in your bitcoin wallet

Not sure where you are located to have banks offer you such high interest rates, but there is a difference when it comes to generating interest and storing your coins in your wallet.

The interest you generate from banks will be stacked up on top of your initial savings deposit, while if you store/hodl Bitcoin for whatever time period, you don't actually gain anything until you start cashing them out.

In that exact same way, if the price happens to go down, you also won't lose anything until you cash out. Till that time, everything you 'lose' or 'gain' will be nothing more than a result on paper, and thus not effective.

It is true that what you gain in hodling bitcoin is paper value but it is still a upper hand than just relying on what interest the banks give you on your deposit amount. Banks do not give interest higher than inflation rate, so you actually lose value of money over time. While bitcoin gives above inflation rate interest. Though it is paper value, you can choose to cash out interest anytime you wanted.

giantrobot

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Quote from: bajing on August 31, 2017, 10:56:28 AM

If i must to make a comparison then I think it is more profitable to save money in the form of bitcoin than to saving money in the bank. actually saving money in the bank is not bad even they give a small profit from interest but they can give you a guarantee, your money will be safe at there.

Banks can not compare with bitcoin, because the profits from them are fixed and long term, so they only give a very low rate. Conversely, with bitcoin, profits are generated quickly, but we do not have any legal factors to secure our money.

bajing

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If i must to make a comparison then I think it is more profitable to save money in the form of bitcoin than to saving money in the bank. actually saving money in the bank is not bad even they give a small profit from interest but they can give you a guarantee, your money will be safe at there.

777Bitcoin

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Nonetheless i think what is important your friend get profits and thanks to your we'll to teach others and you deserved more than just an expensive dinners. Maybe some will tell someone to be regretful by selling at that range and not now when bitcoin is in high price, that's not the point here. It is a story of sucess no matter who discredit it.

ckorbba

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Quote from: Slark on August 29, 2017, 03:35:55 PM

The more I see how Bitcoin is growing continuously the more I am convinced that selling bitcoin - unless you are desperately in need of money - is a foolish move.
Take a look at the opening post, op's friend made quite a bit money on his BTC investment. Was it 10k USD?
But imagine if he would wait and sell BTC now - or even better in 2020 - after the next halving. The profit would be 5 or even 10 more times greater.

The fact is that there are a lot of forecasts for today, but not one yet does not say that the price for Bitcoin can fall together. We write video of insignificant price fluctuations, but it does not change the cardinal rate.

Cherylstar86

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Quote from: aeternus on August 29, 2017, 02:52:43 PM

Quote from: BitHodler on August 24, 2017, 05:55:12 PM

Quote from: marcuslong on August 23, 2017, 04:37:24 PM

Banks can only offer you 3-5% percent of your deposit while in bitcoins there's no limit of the percent of you can earn from stocking them in your bitcoin wallet

Not sure where you are located to have banks offer you such high interest rates, but there is a difference when it comes to generating interest and storing your coins in your wallet.

The interest you generate from banks will be stacked up on top of your initial savings deposit, while if you store/hodl Bitcoin for whatever time period, you don't actually gain anything until you start cashing them out.

In that exact same way, if the price happens to go down, you also won't lose anything until you cash out. Till that time, everything you 'lose' or 'gain' will be nothing more than a result on paper, and thus not effective.

In bitcoin when you earn money you do it through the revaluation of bitcoin against fiat but the amount of bitcoin in your wallet remains unchanged, in a way this is very similar to stocks when the price goes up you still have the same number of stocks as before.

It's a good opportunity with the wallet site that I am using right now the fiat value doesn't change and it's more like a good savings account provided to every user. But if you wanted to have an option to go for holding bitcoin for profit purpose it's a good and fast ways to exchange directly within seconds you can invest bitcoin right away if you have fiat value on your wallet. Bank just gained profit directly from wallet site and they have the biggest market now in the whole country.

Slark

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The more I see how Bitcoin is growing continuously the more I am convinced that selling bitcoin - unless you are desperately in need of money - is a foolish move.
Take a look at the opening post, op's friend made quite a bit money on his BTC investment. Was it 10k USD?
But imagine if he would wait and sell BTC now - or even better in 2020 - after the next halving. The profit would be 5 or even 10 more times greater.

aeternus

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Quote from: BitHodler on August 24, 2017, 05:55:12 PM

Quote from: marcuslong on August 23, 2017, 04:37:24 PM

Banks can only offer you 3-5% percent of your deposit while in bitcoins there's no limit of the percent of you can earn from stocking them in your bitcoin wallet

Not sure where you are located to have banks offer you such high interest rates, but there is a difference when it comes to generating interest and storing your coins in your wallet.

The interest you generate from banks will be stacked up on top of your initial savings deposit, while if you store/hodl Bitcoin for whatever time period, you don't actually gain anything until you start cashing them out.

In that exact same way, if the price happens to go down, you also won't lose anything until you cash out. Till that time, everything you 'lose' or 'gain' will be nothing more than a result on paper, and thus not effective.

In bitcoin when you earn money you do it through the revaluation of bitcoin against fiat but the amount of bitcoin in your wallet remains unchanged, in a way this is very similar to stocks when the price goes up you still have the same number of stocks as before.

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Quote from: BrewMaster on February 22, 2017, 12:02:48 PM

Quote from: quake313 on January 04, 2017, 03:05:51 AM

What bank offers 10% interest? Please, I need to know this.

a bank in a country that has an inflation rate of higher than 20%
i am guessing OP is from India, but i may be wrong.

where i live (a third world country) you can get 18% interest rate since the inflation rate doesn't fit in this comment

There are also some special offers for higher amount of money with rates as big as 25% annually.

I am also a resident of a poor country with very high inflation. My bank offers me 18% per annum if the deposit is in national currency.
But in the end I will not get anything, because inflation will be higher.
So I chose bitcoin for investment

Topic: Bank Interest VS Bitcoin profits - page 2. (Read 6313 times)