Topic: Bitcoin or banking investment? - page 5. (Read 1381 times)

One of the more common myths about the modern banking system is stability and lower risks.

It would be a good time to remind everyone who has money at a bank that your bank likely follows the fractional reserve banking system, which would allow for the vast majority of deposits to be swept away in investments the banks deem to be prudent. You have zero say in any of these investments, and if for any reason some degree of confidence is lost on the institution and depositors decide to withdraw, there will be liqudiity issues and either you or another depositor will be out cash. Since COVID, all U.S. based banks are not required to keep a single penny of user deposits on hand. It used to be they were required to keep 10% of hand (which is too little to begin with), now it's zero. For all this risk, you're given a small interest payment. Since depositors are entitled to their deposits, in the event the bank collapses, any investments returns go back to the depositors, profit is wiped away completely. Say you have 5k invested at a bank with a fixed interest rate promised by the institution, and a run on the bank occurs. Due to fractional reserves, the bank has little cash on hand. What happens to your investment when everyone withdraws? Perhaps think twice before relying on banks for investments or to hold your cash. They can act reckless by inherent design of the system. They aren't stable/secure.

I will choose bitcoin than banks, because in bitcoin we are the one who hold the money while in banks our money is in the hands of the company and they will gain a bigger profit than what we receive, because banks offer a loan and lending business with a bigger interest rate than what we get from what we have deposited meaning they earn big from our money and we as the owner earn small amount very sad truth.

Having some sort of diversification is the best choice than just getting all your earnings into something specific. In such case, sometimes people get lucky to make huge revenue. Most of the time this is high risky whereas diversification on investment lower the risk. My way of investment is much on gold and the rest into bitcoin and other cryptocurrencies. Gold have got proven track record and the history that never lets the value fall. With bitcoin the growth in short period after its existence as well as the growth it could offer to the investors I prefer it.

Yes, totally agree with what you mentioned, however I would like to be more honest about my behavior after many years of exposure to this market. Maybe making profits, then stabilizing them and then making profits again, it seems to be a loop in investing sometimes I look back and find myself so complicated but clearly spend the investment journey and everyone's perspective and our life is different so it's not possible to come up with a completely right or wrong opinion, it's just how we adapt to everything.

Although it is quite difficult to choose but the decision to invest in a bank or purchase gold depends on various factors, including your financial goals, risk tolerance, and market conditions. Investing in a bank typically involves depositing your money in various financial products such as savings accounts, certificates of deposit (CDs), or money market accounts which has marginal profit but has the safety.
   While as Gold has been seen as a hedge against inflation. Unlike interest-earning bank accounts, gold doesn't generate income. But it is also important because day by day its importance and value is increasing. When you consider the current environment, Bitcoin has a tremendously strong influence which you cannot ignore. If you fully understand it, it will be more profitable. So in my openion, be a part of Bitcoin community and earn more.

That’s it. You could save a good amount of money in a bank while you are still investing with bitcoin in the long term. But my advice is that never invest all your hard-earned money, let half of it becomes your personal savings and save for emergency funds as well, and maybe half of it is for your investment. As for investment, do not just focus on bitcoin but learn to diversify too. Invest in gold and stocks as well, but put a bigger portion for bitcoin.

that is true, if you have the means, you can very well put aside money in both. we all know that it is more of security purpose why we are depositing in a bank, not because of the interest as it is negligible in amount. when it comes to bitcoin, we are hoping that it will give higher return if we are lucky with the price increase. the good thing about depositing in a bank is that we are secure that when we wake up next day, our money is still intact, whereas, with btc, it depends on how the market behaves and when will you cash out.

I don't think putting all my money in bitcoin is a good idea. If investing in bitcoin is definitely profitable, as you say, then I don't just use all the money I have. I will borrow from the bank and even sell all my assets to invest in bitcoin because the profit bitcoin brings is many times the bank interest rate. But things are not so simple, high returns come with high risks.

We are approaching the halving, and everyone expects the bull season to come after that. But just hope and prediction, no one can guarantee it will happen 100%. Honestly, it would be a bad idea to invest it all in bitcoin. It's gambling, not investing.

It is obviously not possible to keep everything you have in Bitcoin since we all know that Bitcoin cannot be used for daily expenses yet and we will again need to convert some of our Bitcoins to fiat if we need to spend them and we will definitely need to do that on a daily basis, so yeah, it is not viable to not keep fiat at all only for this reason.

I don't agree that someone should invest in altcoins if they are thinking long term, altcoins can surely provide more profits but they are not good for the long run, if you are making short term trades, go for altcoins for sure.

If we wanted to maximize the profit, choosing the one that gives more profit should be the choice and from the option, Bitcoin investment gives way more possibility to earn more money than banking investment so I would choose Bitcoin investment.

Time-wise and profit-wise, Bitcoin gives more, especially at the current phase of the Bitcoin cycle where the bull run is almost at the door.  Choosing Bitcoin will definitely give the more profitable venture of the two.  Forget banking investment and all-in in Bitcoin investment for maximum profitability.

No need to chose actually. You could invest both in bank and bitcoin if you want. But make sure that you won’t put big amount of money sleeping in your bank account, their interest are just too small for that. Furthermore, invest in bitcoin at your own risk, at an amount that you can easily manage to lose. Know that volatile investments like bitcoin do not give us fixed profits, and it could be losses at some point aside from profits, so always invest within your means.

I on purpose did not include this important aspect because I personally believe that is is common sense to already know that in what ever you are investing, It is highly important to leave a good amount of money in the bank as savings for basic needs of the now and future, and a means must be made available through which the bank balance must be topped up regularly, in order not to run out of money in times when an emergency hits suddenly.

Yeah of course, when I said bitcoin, I actually meant bitcoin and altcoins together, this is a bitcoin board and I usually try to avoid discussing altcoins here, but yeah, I do have investment in bitcoin and also in some altcoins I feel got great potentials.

It all goes back to the original concepts in economics and belief systems according to each perspective. As long as it is in bitcoin basically it can be said to be more promising regardless of the risks faced, it is definitely great, so it is not wrong to do that.
But on the other hand, in this case I also agree with what you said about diversification considering that this is also important because indeed we have to make a little other options if one does not go well. as for banks I prefer to save there because indeed at this time fiat is still very dominating for needs but not in investment because indeed it is only to meet my daily needs in this case.

Here in the forum you will get many replies they choosing bitcoin, that is for sure. If you ask this question in a bank, the answers will be different. Maybe the bankruptcies of the silvergate bank and a few others, a few people will change their minds, but I dont think there are many. We here in bitcoin we trust.

It is essential to maintain a certain balance in your bank account to cater to your daily food shopping needs at supermarkets that do not accept Bitcoin as payment. As long as the distribution of Bitcoin remains uneven and it is not widely adopted as a legitimate means of payment according to regulations in certain countries, it becomes necessary to have a sufficient ATM balance in the bank. Paying for groceries with gold or stocks can be quite challenging. Therefore, it is advisable to possess an adequate amount of fiat currency to cover your daily expenses, including food.

Considering that you have a larger portion of your wealth in Bitcoin, it is understandable that you prefer investing in higher-risk assets. However, have you considered exploring other opportunities within the cryptocurrency realm, such as altcoins? They come with increased risks, but the potential returns can be equally rewarding.

Well, I will always choose bitcoin, but then, it's not a bad idea to also diversify your investments to other investment sectors, not particularly keeping your money in the bank, but investing in assets like buying shares, precious stones like gold and diamond , investing in lands and properties - this is the same as real estate and so on..

For me currently, I have most of my investments in bitcoin, but like I said, I don't have to depend just on bitcoin, I also have small amount of monies invested in several other sectors of investment like I mentioned above.

Just like we have been seeing that the fiat currency is fading out gradually and having no much value like it used to be since the introduction of Bitcoin. People had been complaining of the problems they do face on a regular basis to send there money to whatever source they wished. The bank issues and tax had made people to look for a more convenient ways to make transaction without the bank coming into it.

 Bitcoin had break so.many rules and make things easier for us to send and receive money without delay or the government questioning us for the reason why we want to make the transaction. We are now getting to the full era of cryptocurrency and it's not gonna take much time from now.

Why don't you choose both? According to your analysis, both have advantages and disadvantages, so using and combining both is best. You have both safety and can maximize your profits. Moreover, diversification is a good thing to not trust too much in a single asset, whether a bank or bitcoin. Everything has risks, and nothing is perfect or completely safe. I am still using both and quite happy with them, bitcoin for long term investment, bank for savings and short term funds.

I understand that investing in bitcoin and other cryptocurrencies carries more risk than saving money at the bank. The value of bitcoin can fluctuate visually and is not suitable for those who want to invest with a low risk threshold. As far as the value of fiat currency is concerned, there is a noticeable benefit in saving money at the bank, although the interest rate is not high but there is a lower risk. Investing in bitcoin or saving money at the bank is a personal decision. Need to analyze the benefits, risks and own investment experience to make a reasonable and appropriate choice.

Bitcoin and banking investments are two different kinds of investment options, both have different benefits and drawbacks. As a digital currency Bitcoin operates independently and is decentralized which means it is not controlled by any government entities nor financial institutions. Bitcoin has the potential for high profits but it is too volatile and risky. Banking investments on the other hand is more typically more stable and less volatile than Bitcoin. Banks offers a wide range of options like savings accounts, loans, credit cards, mutual funds, time deposit etc. But banking investment offers much lower rates of return and considered to be much safer compare bitcoin. The choice on which to invest would depend on the indivual if they are willing to take risk for much higher profit or if you want a stable but lower interest rates.