Topic: Keeping money and keeping bitcoins? are they similar? - page 6. (Read 2312 times)

When viewed from a Volatility and Risk perspective, BTC is known for its high volatility. The value of bitcoins can fluctuate significantly in a short period of time, which poses a higher level of risk than holding a stable fiat currency and in terms of Accessibility and Acceptability of bitcoins is still limited when compared to fiat meaning not all businesses or individuals accept bitcoins as a form of payment whereas Cash Fiat is widely accepted, easily accessible through traditional banking systems, and can be used for a variety of purposes.

In Saving, For fiat money involves traditional financial institutions For example Banks, while depositing bitcoins requires knowledge of blockchain technology, digital wallets and methods of secure storage which means the skills and strategies for managing traditional finances may not directly translate into the complexities of managing cryptocurrencies.

Yes, that's right, saving money either in the long term or in the short term is very much different, because fiat has a fixed value while Bitcoin fluctuates causing price charts to always change, saving in Bitcoin is one of them you can invest not just saving, and if they are someone who is engaged in cryptocurrencies, of course they will keep it in Bitcoin, although not all, because they also need fiat in their daily life for the economy and maybe their family.

Saving fiat money and storing bitcoins are completely different especially when storing them for a long time or long term. For myself, it's better to save bitcoin from now on and use it as an asset to guard against global economic chaos rather than keeping fiat. Because the price of Bitcoin may increase significantly so that we get profits, this is very different from keeping fiat money. The analysis is like this, What if the government chooses to block all banks due to war or tension? Inflation is real, fiat money will lose value.

If you save Gold, gold is difficult to carry everywhere. So Bitcoin is the perfect way to save money because we can leave the country or migrate and just know how to access our wealth from our usual cloud/wallet.

Quite an Old topic, Seems like Op was in his Initial days on the forum when he created this topic and now, He is even working with the mixer campaigns.

So after spending a quite decent time in the market and on the forum now I would like to ask you What you've got about it and please modify your Answer on it. Because I want to know is your Stance on Bitcoin changed or not, More likely if you are marking my Quote there are high chances that now your asked question will bring Laughter to your face. Let me know if I am wrong.

for me crypto lovers storing bitcoin is the main choice because its value will increase if the price of bitcoin reaches a new ATH and we can get greater profits, but if we save money the value never changes like when we first save even though there is interest but only a little, but if saving in the long term I feel a little disadvantaged because the value does not change, This is certainly very different from the value of Bitcoin, but the risk is certainly different and depends on our respective beliefs, so just choose which one we believe in because both are indeed our future assets.

They are entirely different because one is a stable currency, and the other is a highly speculative asset. So you can hold both, money used for savings and daily living expenses. While bitcoin is a long term investment and a way to grow wealth in the future. But I recommend holding more bitcoins than fiat, as fiat depreciates over time while bitcoin always increases in value over time.

Keeping money and bitcoin are similar in the sense that both involve in storing value for future use. Money is a physical currency that is issued and controlled by governments, whereas bitcoin is a digital currency that is decentralized and not controlled by central authority. This means that while government can print more money, the supply of bitcoin is limited to 21 million. Money is widely accepted as a medium of exchange for goods and services, whereas bitcoin is still relatively new and not as widely accepted. The number of businesses accepting bitcoin is growing and it is increasingly being seen as a legitimate form of payment. The value of money is relatively stable and predictable, whereas the value of bitcoin is highly volatile and can fluctuate rapidly. It only means that while storing money in a bank account may offer relatively low returns but also low risk, investing in bitcoin can offer higher returns but also higher risk.

You're correct that saving money and investing in Bitcoin are different approaches with varying levels of risk. Saving money in a traditional bank account is generally considered a low-risk option as it provides stability and the assurance that the value of the money deposited will not decrease over time. The primary objective of saving money is to preserve its value and have it available for future use.

Of course it is very different if we store money and bitcoin, because storing money the risk is not too great in decreasing value will also be difficult to occur because money is a currency that is already stable, while bitcoin we have a lot of risk both in price drops and from hacker attacks that have become a target today because the value of bitcoin can always make surprises for users, If the value can increase then we will definitely get a large profit from the capital we once spent then now smart people prefer Bitcoin to be stored as future savings.

Keeping money and keeping bitcoins is of course a different matter, keeping money will not make us rich because its value never changes but usually goes down due to inflation, while keeping bitcoins is something that can make us new millionaires, there is a lot of evidence that they are buying bitcoins for $1 or less and have tens of thousands of bitcoins are now the new rich people.

It is highly discouraged to keep 100% of your budget in bitcoin for any reason. Bitcoin gradually continued to grow year by year and bitcoin was adopted as a currency due to all the characteristics of money present in it. Bitcoin has the characteristics of money like durability, portability, fungibility, scarcity, divisibility, and recognition as stated on the bitcoin.org site. But however, anyone is not advised to put 100% of their money in bitcoin because of the risks.

As many other users have said, bitcoin has the potential to be a good investment asset that is profitable compared to bank deposits. Fiat is losing value over the years, but it is still needed in this centralized world. Keep both, buy bitcoin and hold it long term investment asset while you also need fiat for day to day transactions.

You make an interesting observation regarding the correlation between the ability to save money and holding onto Bitcoin or any other form of wealth. Personal financial habits, including saving money, can indeed play a role in an individual's ability to accumulate and hold onto assets like Bitcoin. It's often the case that individuals who practice disciplined saving habits are more likely to hold onto their wealth, regardless of whether it's in the form of traditional fiat money or cryptocurrencies.

Saving Bitcoin and saving money are different things. Because When we consider to store Bitcoin. Bitcoin is a very valuable currency and asset for the future because its price fluctuates. It can get bigger profit if its value goes up in the future.

On the other hand, saving money in fiat currency has tight security so that it makes our money safe. however Inflation can affect the purchasing power of our money over time, there is also the advantage that saving money tends to be more stable and widely acceptable in day-to-day transactions. His decision to keep Bitcoin or fiat currency is largely down to personal preference and knowledge of the bitcoin market and technology. But it would be nice if we have both savings.

Indeed bitcoin is prioritized to hold in the long term. For the short term I prefer to do it with altcoins, whereas for bitcoin at least until the bull run comes for me to keep holding it, that is at least a short amount of time to hold bitcoin. But most people are impatient in holding for the long term, they will be tempted by profits when they see their portfolio increase, which is natural because that is what we are aiming for. It's not a problem when we are still selling in a profit, but it's not uncommon for many people to panic so they sell when they lose.

Its a question about Centralization vs. Decentralization. Do you want your money to be regulated by central banks and governments. In this case they control its supply, circulation, and monetary policies.

Because there are improvements from time to time that makes Bitcoin more suitable as an investment in the long term. Because if the investment is only for the short term, I think it's not much different from a trade that some people also often do in the short term. But if investors who like Bitcoin and invest long term, I don't think those investors will make a focus on selling in the short term nor will they give up arbitrarily at prices they don't like. Because usually investors who have several investments will prefer to keep their assets by not throwing them away at a low value.

Apart from what already has being said about the main differences in keeping money and keeping bitcoins (stability vs rising potential; centralisation vs decentralisation; tracking and transparency vs anonymity) I also would like to add some phycological, if to say so, aspects, which makes those two activities not similar at all. Keeping money, in my opinion, makes you vulnerable to temptation to spend them when you feel such a necessity. More likely you wouldn't search for alternative ways of getting some extra money if you already have some savings. it could be a little bit of pity to get into your savings pocket and pend what you have managed to hold over, but there is a high possibility you would do this in case of emergency, you would consider this as the best option.

On the contrary, when you hold bitcoin, you tend to think at what price you bought them, and what is the price at the moment, are you losing or gaining if you spend them right now. They become more valuable in either cases: is the current price is higher than the buy price, you wouldn't want to lose more potential gains to pay for something right now. If the current price is lower comparing to the buy price, you wouldn't want to realise losses. That is why you would probably look for some other options to solve your immediate issues. Bitcoin ownership makes you more prudent and reasonable and even more creative in solving such problems, because you wouldn't desire to sacrifice you valuable bitcoins in order to spend them for something you can reach in other ways.

That's why it would still recommended to not invest all of your money like 70/30 or 60/40 for keeping money and the rest for investment so it wouldn't hurt your funds since you still have bills to pay. But it's true since Bitcoin is much more complicated than saving money with the volatility involved which could risk your funds. So it might take a lot of time for you to perform well in Bitcoin as you still need to study and gather some knowledge about it. Plus if you would need money realquick you couldn't just transact in Bitcoin since there's also issue about the transaction time. So separating savings is recommendable.

Bitcoin was still a money but the only difference is that it has a limited supply which means it is more immune to inflations so keeping bitcoins is also important as keeping hard money. The reason why need physical money is that not all times bitcoin is accepted and then there are times that internet and electricity is unavailable for us to use a bitcoin.

People who are good at saving money might not perform the same on saving a bitcoin because bitcoin is too unstable and it might scare them when they saw that its value is dropping hard and seems not going to recover anymore. They will still need to learn bitcoin first in order to be good at it.

What you said is spot on. Bitcoin? An occasionally turbulent rocket. However, if you can keep your cool and keep holding on to it for the long term, you will have a digital treasure on your hands.

Investment in Bitcoin? Fighting this is like taking on a rabid grizzly. thrilling and maybe fatal. No risk, no reward, so keep that in mind. When your digital wallet begins to jingle with riches, it's time to cash out. Get your hands on those profits and watch your wealth grow.

And that's not all! Punctuality is a fine art. Take advantage of the dip in price that occurs when Bitcoin has a temper tantrum and other cryptocurrencies follow suit. Keep your finger on the investment pulse, keep up with Bitcoin's winding story, and adapt as necessary.