Topic: TOPIC: Pros and Cons of saving fiat versus saving Bitcoin in this current econom (Read 330 times)

I agree, however banks had a monopoly, even if there were different people behind each bank at the end they still offered roughly the same services so they got complacent thinking there was never going to be anything which could challenge their position.

But now all of a sudden a competitor appeared that they cannot destroy and that in fact can perform a great deal of their functions at not cost or at worst for a very small one, so they are still confused about what to do because bitcoin not only offers similar services, bitcoin itself is a form of money and it is quite strong in that aspect as well.

Banks are the main reason why crypto became a big thing. If banks did their job well enough then there wouldn't have been a need for something like this to begin with. Obviously, it is not going to be an easy ask, because bitcoin making more profit than what interest rates give you is not a given thing quickly, you need to be able to wait for it.

Think about all the people who bought above 60k+, those people are still waiting for something to happen, and would have preferred interest in a bank. But if they wait, I am sure that they will make more profit eventually but that will take some time and maybe even over a year now as well meaning they would have to wait nearly 2 years to get that higher profit.

As for me, saving both would also be wise. We don't have to hate fiat if we're into Bitcoin because no matter what we do, fiat will always be our main currency. I'm saving fiat for emergency purposes because it's convenient, especially in purchasing essential goods since most merchants still don't accept Bitcoin. I'm also investing in Bitcoin on a long-term basis because I trust it as an investment first. I believe that both could work together depending on our usage and purpose.

Bitcoin is inflation-resistant, but it also does not hold value for too long, it is a speculative asset, and many people don't think it to be a store of value yet, but there can be no arguments about how btc value increases long term, but short term is a headache for people that are trying to get rich fast. So as people save or invest in bitcoin they should know what can happen in the short term and what is inevitable in the long period, so they get everything straight.
Hypothetically i want it to happen, but realistically i don't know how possible it may be, good thing is nothing changes for the btc network, it is meant to be an alternative that offers many things different to fiat, and it will continue to be that.

I notice this too but we can’t blame them because we are on Bitcointalk forum and most of user here hated fiat that’s why they are using Bitcoin and landed here. For me they indeed have there advantage and disadvantage and we should not comparing these two subject because it has a different mechanism. Fiat is solely classified as currency while Bitcoin has a wide range of classification.

I don't know why you're seems like attacking fiat over Bitcoin advantages, but you're forget you're still using fiat to pay daily expenses and most of your money is still on fiat money. The reason is you're worried if Bitcoin in bear season, you would suffer a losses if you're sold it.

Don't need to compare between fiat and money, each of those currency can work with each other depends on each advantages and disadvantages.

I don't consider myself to be a Bitcoin absolutist by any means, but I am more of an absolutist towards crypto than I am of fiat. Saving fiat has no inherent benefit due to built in inflation that is systematically introduced by the central banks to maintain the economy. Had the fiat systems been pegged to a tangible asset, or revert back to the gold standard, I'd feel differently.

Even with any drawbacks of BTC, I'd choose it over fiat where my purchasing power is lost by default year over year.



Slight push back on this point: I agree with you generally, but it's also true that folks living in the first world take digital media for granted. A lot of people don't have this luxury which pushes further from the goal of mainstream adoption.

I am trying to save both fiat money and crypto currencies to be more diversified for the future. The uncertainty you mentioned is what makes it hard for me to only save in one or the other. The biggest problem for me is that all my monthly expenses are in fiat. I need a fixed amount each month in fiat money to pay for housing, utilities, food and car insurance. For that I need to have a savings account that could cover any shortfalls very quickly. Only relying on bitcoins and other cryptos is still too risk, as long as the crypto prices are fluctuating heavily. My monthly salary is also in fiat, that covers any expenses and when I have excess cash left at the end of the month I will invest it in cryptos. In my opinion cryptos offer the best long term value and protection for investors, we just can't rely short term on it. If there is a bear market like we have this year, the worst thing that could happen is to be forced to sell cryptos to cover fiat expenses.

It is good to save in bitcoin. Fiat is no match for saving in bitcoin especially if you will save for a long time. Inflation is real and kills Fiat so fast. I am so much surprised that my local Fiat could buy March this year, it cannot buy today. Before now we notice inflation only if there are like many years, but today only in moths the effects of inflation is seen.

There is no regrets on saving in bitcoin unless if one is unable to safe keep his/her private keys. Then what I don't know is saving Fiat in banks and saving bitcoin in exchanges which one is better.

Given this current state of economy here in our country, I can say that it's not really a wise move to just save your money in banks. Specifically speaking, the traditional ones. Because the inflation rate in our country is getting higher and higher as time passes by. If someone will just rely on the banks for saving and its interest, they'll just be disappointed. Since inflation rate keeps increasing and not a bit decreasing, the interest is pretty much lower compared to the tax imposed.

This will left you a fund in your account that barely earned an interest. An interest that will not even gonna pay for one transportation fee. And mind you, that interest is already good for a year. You need to have millions in your account so that the interest would be felt and noticeable.

Hence, it is better to just save with digital banks that offer higher interest rate than the traditional ones. For those who don't really like or know bitcoin, digital banking could be your option. But as for me, I keep most of my earnings in bitcoin. But i also make sure that I have a spare and cash on hand apart from my savings in btc to be sure in case of an urgent situation.

One thing for me; not using banks. I started my crypto adventure based on not having any type of love for the banks and that meant that if I could keep all of my money in crypto then I would and I would only put any fiat in my bank account only when I need to spend it, until I need to spend it, it stays in the crypto world. Hell even if I want to keep it in fiat and not in crypto because of a bear run or anything, then I would turn it to stablecoin and just be done with it.

So, I beleive that it shouldn't be a problem to pick crypto over banks. It is literally a way to make yourself the bank and people are missing that which is a big problem in this market.

Not only fiat is printed without limit, fiat is being printed at an accelerated pace, at least with bitcoin even if we know that new bitcoin is being mined each day, we know there is a limit to the coins ever created and the inflation of bitcoin goes down every  four years due to the halving, so just from those points alone we can see that saving our wealth in bitcoin is more advantageous than to do so in fiat, even if at the moment fiat is still by far the one that is the most widely used as a currency out of the two.

Is there anyone who saves in fiat, when inflation is greater than 8%?

Has it somehow become a recommended investment strategy?

Diversification strategies are out. Saving in fiat is in.

While recent bitcoin trends have not been great. The question is whether people notice recent changes in bitcoin's price behavior. The recent plunge in BTC makes no sense at all. Its a higher percentage drop than china banning bitcoin. With no events that would suggest such a price decline should occur.

Bitcoin's recent trading in lockstep with the DOW is also a big question mark and a huge departure from its normal trading cycle.

How do people explain these things, if they notice them. That could be the real question to ask.

1- how often do you come across fiat counterfeit?
2- how does a physical structure be a con for fiat direct transfer?
3- I think it is also between you and your bank
4- bear in mind btc is not universally accepted so I doubt it has the upper hand in this case yet.
5- There are limitations still
6- btc has a limited supply which could also be a con when the entire world decided to adopt it.
7- btc adoption is very minimal unlike fiat so doing business with ease for now is not present.
in the end btc serves as a good alternative to fiat, both are relevant in their different ways, btc doesn't have the acceptance fiat has hence it will be very difficult to ignore this, however great btc is, fiat will always have the upper hand for now in terms of day to day transactions.

Let's face it, most of the criteria you have listed is also applicable to fiat currency and contrary to what most people around here might claim - banks have a pretty exceptional track record when it comes to security. There are also various flaws in your points, like number 6 where you mention that cryptocurrencies have a finite number available, but in actual fact there are many crypto coins out there which have flexibility often determined by the developers on whether any new amounts get introduced, so buyer beware on that front. Number 5 is another flawed argument, as we already have billions, if not trillions of transactions taking place each day via electronic mechanisms without even factoring in cryptocurrency - if crypto disappeared tomorrow it would have a fairly negligible impact on future progression.

That was true and one example is when a whale sends btc to someone else where he will only pay cents for the fee. Imagine how convenient was that? But, if this happens with other payment methods then I think so many stuffs must be done first and then the fees are also going to be expensive. Bitcoin is not new but it had existed here for I think 13 years already and with that time span, many things have happened already.

Btc and fiat have some similarities and both has their pros and cons too. This is why they are always being compared by the masses. Btc was once an idea but have came to reality already. It's now a product but yes its risk is high than in fiat. People should be aware with that.

If the future trend goes along with the historical data, this statement is correct, because the BTC price will go higher... but no one can predict the future, and the past trend doesn't always shape the future trend. That said, from a neutral perspective, saving in BTC is risky, lots of unknown, especially in 10+ years, while saving in fiat is pretty much predictable. Sure, there will be inflation, but it's already taken into consideration when people save in fiat.

Never save the money you earned in fiat form because the value of fiat currency keep decreasing so about saving Bitcoin is the better choice but from acceptance perspective fiat is more preferred even in 2022 but in digital format as we know it may change when people think the central authority of monetary system is not good then bitcoin will get more priority as medium of exchange and by that time we see more and more stores with sign boards of bitcoin only accepted here.

Fiat will always be fiat. While its value may decrease/increase in the given circumstances surrounding the world, it is considered widely by all countries to have a value that is accepted all throughout.

The problem with cryptocurrencies is its nature and acceptance. Its value is highly volatile in a way that it can vary from time-to-time depending on several factors. Another problem surrounding is its acceptance by countries. China has started prohibiting its use and the biggest exchange in India has closed due to strict regulations and implementations from their government.

This is an important gain for using bitcoin against fiat. Apart from that fiat depreciates , you have exchange your btc to any available fiat currency you want to transact in across the globe, what you only need is to use a crypto exchange and you easily send to your client on whatever currency they are requiring on. This is simple to do, exchange like binance does this kind of service very swiftly.

The second part of this statement is wrong and I hate how some people try to talk about bitcoin and then sneak altcoins into the discussion.

Considering the fact that majority of altcoins are just copying the existing technologies and don't really have any innovations, that makes them all identical. This means you can say their supplies are capped because if altcoin A is a copy of bitcoin and altcoin B is also a copy of bitcoin and both have a capped supply, they still are not "finite" since altcoin C can be created by copying bitcoin and increase that supply.

Meanwhile bitcoin is unique and you can't increase the supply by any means including but not limited to copycoins.

If you're talking about today, then it's still not yet. Bitcoin has a side of skepticism on the one hand, the problem is that public addresses are also not equipped with owner information. I don't consider onchain transactions under $100 to be an important business moment. For now I have never heard that bitcoin is used in the routine transactions of business people, I don't know what is happening out there (especially on the dark web).

I don't want to pick one because both of them have their usage in my case.
I save fiat at home for daily needs and emergencies and I have a single bank account where there's not much money in it.
You cannot put it all in an asset like Bitcoin because there's not many merchants who accepts it in this generation. Maybe someday.
But, I could say I have a larger amount saved in Bitcoin than what I have in fiat. I don't really care about the volatility yet. It could go moving anywhere but the amount of Bitcoin that I have will remain intact as long as I don't sell it.

I still need to save both.  The current economy is still fiat driven so it would be troublesome if I only save my funds in cryptocurrency form.  Proper management is the key to being able to take full advantage of the two financial systems.  So the action lies with the question, why take one when we can take advantage of the two systems?  Given the pros and cons, I think Bitcoin still needs time for improvement to compete with the transaction speed of the digital fiat system.


True that since many points given by OP had been refuted by earlier replies.  It simply means that we still need fiat currency and Bitcoin is yet to be ready to take over the financial world.

I find without mentioning that OP's presentation is really unconvincing and irrelevant, because not everywhere on this earth has the same economic operation. And knowing that BTC accumulates them does not contain both risks and benefits, I think getting rich with a specific method with them would. We need fiat to live the life going on around us, and don't just look at the happenings around us and blame them for not being good or good because it's still the most convenient means. As for BTC, consider it as a means of getting rich in fiat and a well-functioning formula chain. Any accumulation of assets is reasonable.

I do not know how this sentence can be true, as the Bitcoin propagation globally is still in the beginning stage and it is impossible to compare it with the prophecy of paper money that has hundreds and perhaps thousands of years.

In general, Bitcoin is an idea and carries a high risk, so if you want to invest, you must understand all the risks before you deposit your money and invest wisely and not recklessly.

Counterfeiting fiat money isn't exactly easy. Most people encounter counterfeit banknotes only a few times in their lives and in small numbers.



Bitcoin transfers are not quick, many banks and payment networks these days offer nearly instant transactions. Bitcoin tx takes 10 minutes on average, if you pay enough fees to get in next block. And it can take hours or days if your fee is too low.

Transparency and traceability is bad, it means other people can see where you are sending money.

Immutability has pros and cons. If you lose your money, no one will recover them for you. Zero chance.


Again, third parties can cause harm, but also can cause good. They can fix your mistakes and save your money from certain bad situations.


In terms of digitalization, Bitcoin has no upper hand over fiat, which is also digital. People these days are paying with fiat via cards, phones and apps.


Actually its the opposite, the image of Bitcoin as a hedge against inflation and economic uncertainty was shattered.

I don't see the pros and cons of keeping something like Fiat and Bitcoin because so far I've kept both Fiat and Bitcoin the way I wanted. I keep 40% of my assets in Fiat and the rest is in cryptocurrencies like Bitcoin as much as 30% and a few percent into altcoins. So for me there are no pros and cons to this because everyone still needs a Fiat for the necessities of life even though they also need to keep Bitcoin and keep trying to get it every day.

I don't see the incompatibility, to me the OP's point is a false dichotomy. I have savings in fiat currency and savings in bitcoin. Although bitcoin savings could be considered more of an investment, as I expect it to be worth much more in the future, unlike fiat. The time horizon is different as well. I have fiat savings for short term contingencies and for some future expenses in the medium term, while my bitcoin investment has a long time horizon.

One of the main advantages of digital currencies that gave a significant impetus to the bitcoin vs fiat currency debate is that they are safe, fiat currencies are made of paper and are prone to counterfeiting. But people can hardly fake digital currency on blockchain protocol, transactions are very fast and also secure.
but in life we still really need fiat to be able to meet our needs using fiat so I use both and save more bitcoin and less fiat to meet any needs and bills.

Of course, you don't save your wealth in a currency or an asset which depreciates. That would be stupid. It defeats the very purpose of saving. So Bitcoin is the better choice.

But then we cannot deny that the world revolves around fiat. It is next to impossible to live with Bitcoin alone. Stores, shops, schools, hospitals, hotels, transportation, and so on accept fiat rather than Bitcoin. Therefore, you need fiat. So keep your savings in Bitcoin but it doesn't mean that you'll convert all your fiat into Bitcoin. You still should keep a good amount of fiat with you.

^ "Nothing beats cash on hand" - Uncle Jack.

Cash will be a preferred one for everyone. Its still what is accepted the most in every store. Even the family that sold everything for BTC sure does have cash. I wouldn't believe all they have are BTC.

Since time is very uncertain however, BTC will not hurt and will even give profit when bulls come running.

I'd do a little bit of both. I wouldn't really risk all my assets on Bitcoin, not as crazy as that one family that sold all their assets for Bitcoin (which paid off, but really, what are the chances of that happening again). I'm still going to manage my assets properly so I can respond to both emergencies and for saving up for the long term. I still haven't really withdrawn my initial investments on Bitcoin and I DCA as well so I don't think I'd have issues there. I still keep a part as fiat though, separate from the amount I invest and the amount I use for daily expenses and monthly bills.

For those of us in crypto already, It is absolutely normal to agree that it's better to save in Bitcoin than it is with fiat due to several flaws in the fiat system. ( and this is not to that saving in Bitcoin does not have its own flaws as well).
But what about our Grand MAs and PAs? Would majority of them agree that it is better to save their money in Bitcoin even after agreeing to the flaws fiat money possess?
Bitcoin, just the same way it has captured the hearts of the younger generations, still needs to capture the hearts of the older generations amongst us...and on this note, it still have a very long way to go.

I am doing both, there are rumors of war and an existing one plus all of those health emergencies and that's why I'll be saving cash as well. At the same time, I still have my bitcoins on hold because of my future plans and I believe that this is going to be really profitable more than I've seen it in the past. Despite I'm already in profit, I'm not going to remove that hope of earning more. I'm not that greedy at all but that's part of my investing plan.

Why not save both since both have some great opportunities to earn profit. The disadvantage of fiat is that it is not decentralised unlike bitcoin. When transferring fiat online is it can be easily trace by government especially if the person doing it is laundering money. I think it also depend on the country's economy if svaing fiat is profitable. After all, it is you who will decide to focus on fiat, btc or both. For me, I save both.

I don't know about other people's country and the situation of things there but with the current economic situation of things in my country and how our currency is constantly losing value against the dollars, It will be a regrettable decision if you choose to continue seriously saving in fiat. Personally what I have resolved to do this season is to continue to save more in bitcoins and keep less money in fiat just for accessibility and easy use sake.

4. Bitcoin's upper hand is not that it's purely digital, but the fact that bitcoin can be private if you know what you're doing; unlike with digital transfers with banks/neo-banks.

5. This is totally debatable.

6. True, but 99.999% of cryptocurrencies doesn't matter in the SoV/currency category because most cryptocurrencies are pseudo-equity. In the currency/SoV category — it's just BTC, and arguably ETH(totally debatable, as a small number of Ethereans are pushing the ETH as money narrative; not saying that I agree)


You don't have to go all in on bitcoin or fiat, as you can go with both. People need to practice proper risk management with investing. In general though based on my personal situation(this should be different from person to person), I can go with higher allocation with BTC because I don't have much responsibilities.

Having known that fiat money is a type of currency, a bill of exchange, a negotiable instrument, otherwise known as paper money or dollar bill used to purchase or pay for products or services that ensures our comfort, it is rather debatable whether saving fiat in the bank, at home or in bitcoins, is a good idea.

Bitcoin, however, is a digital currency. It utilizes a computer network as a medium of exchange that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. Let us, therefore, consider some of these pros and cons to see the light:

1 Bitcoin is secured by blockchain technology, thereby making it difficult to counterfeit or toy with.

2 Bitcoin hardly has a physical structure to speak its value unlike that inherent for fiat money. It operates on a decentralized infrastructure that makes direct money transfers quick, traceable, transparent, and immutable.

3 The number of parties involved is technically only two for bitcoin, unlike fiat where third parties must be present.

4 As the current world change has been from the traditional mode of exchange to electronic mode(digital mode). Bitcoin has an upper hand, as it is purely digital.

5 Bitcoin has in recent times proven to be a strong alternative to fiat money, thereby making it a unitarian global currency.

6 Bitcoin and many cryptocurrencies have just a finite number of the same available.

7 Bitcoin ensures ease to do business with both local and international parties that involve huge amounts of cash, without having to incur heavy charges considering the volatility of the exchange rate, unlike fiat money.

The pandemic shook the economy and exposed flaws in both personal and public systems of commerce. Recession became an aftereffect after the World pandemic and the ongoing war between Russia and Ukraine has added to this quotient. It is however noteworthy to examine these pros and cons of saving fiat versus that of saving with crypto in this period, to be ready for uncertainties.
Knowing what you now know, would you rather save fiat more or save in Bitcoins more?