Bitcoin as a savings account?

[Skunk-Works]

I was wondering if anyone uses Bitcoin as a form of savings? I have a Coinbase account and have been depositing money there into my vault. I have seen other websites offer a real savings account with a good interest rate, however you need at least $450 to get that. Right now I'm just hedging on Bitcoin's value going up and up. I can't believe how I seen it at around $2,000/BTC not too long ago and already it's up to over $4,000. It's worth more than gold.

 

[lxskllr]

I don't like the idea of a savings account for something that has little regulation. What happens when your "bank" goes tits up? Also, how does interest work? What's the business model behind it?

 

[Crono]

I use ethereum somewhat as savings, but it's more an investment vehicle/asset, though I occasionally use it as actual currency and hope to do so more when a greater number of businesses support cryptocurrencies (though mostly it's going to be a backend and settlement tool for the foreseeable future).

I don't have enough, though, mostly from stupid decisions to dip into that savings. Should have held.

 

[sandorski]

Too volatile. It's more a High Risk investment than a Savings Account.

 

[zCypher]

lol.

 

[IronWing]

I prefer to save my money on Black 22.

 

[R0H1T]

That's like banking your money on a roulette or the racetrack, not the actual establishment rather the outcome.

 

[Ken g6]

Diversification is good. It might make sense to put a percent or two of your money into something risky like this. But maybe not right now - I hear China may ban Bitcoin soon.

 

[KB]

That sounds more like a speculative investment rather than a savings account. Savings accounts should have some builtin safety, including FDIC insurance. BTC accounts have no insurance and have been a growing target for ponzi schemes. Good luck!

 

[deustroop]

Jamie Dimon calls bitcoin a 'fraud'.

http://money.cnn.com/2017/09/12/investing/jamie-dimon-bitcoin/index.html

 

[VirtualLarry]

OF COURSE big "Central banking" players are going to demonize Bitcoin and friends. So did the buggy whip mfg's. Look where they are now.

 

[Staples]

Probably a better idea to put money into an S&P500 index fund. I doubt coinbase will be hacked and I finally feel comfortable enough to buy and let them manage the account (so I use it) but you never know what the future of these cryptocurrencies are. They may be worthless in ten years or worth 100x what they are now. There are over 1000 of them now which is just crazy that any of these things are worth anything.

Better yet, start your own ICO, you can make millions at the very least and billions if you catch any traction.

 

[dave_the_nerd]

It's worth more than gold.

Gold is priced per ounce. How much does a bitcoin weigh?

 

[Elixer]

All these crypto currencies are highly volatile & have a very high risk.
I wouldn't use this for any investing at all.
This is all closer to gambling.

 

[Printer Bandit]

 

[Crono]

Gold is priced per ounce. How much does a bitcoin weigh?

How much gold can you carry?

 

[sandorski]

All these crypto currencies are highly volatile & have a very high risk.
I wouldn't use this for any investing at all.
This is all closer to gambling.

I think the only safe way to use these currencies is to Mine them and even doing that has risk. Some people have successfully used them as Investments, but I suspect this is more of a fad than something that will become permanent.

 

[Pulsar]

Diversification is good. It might make sense to put a percent or two of your money into something risky like this. But maybe not right now - I hear China may ban Bitcoin soon.

Not going to happen. North Korea is currently paying for Chinese products to circumvent the restrictions on them with bitcoin.

 

[dave_the_nerd]

How much gold can you carry?

More than I can afford.

 

[ultimatebob]

Yeah, I'm not going to put my savings into something that is hated by world governments, loved by criminals, and has a bad habit of having daily 20% price swings.

That would be like "investing" in Powerball tickets for my retirement. It might be fun, but it's not practical.

 

[Crono]

The way people are viewing cryptocurrencies now are the same way people must have viewed the early stock markets. They're volatile, they're lacking rules and regulations, they're a waste of time, they have no future, etc. Essentially it's an immature are of finance, but I think many are missing how integrated cryptocurrencies are becoming within the banking system, and through other, more interesting FinTech applications on the horizon.

Yes, there are safer ways to save money. But the safer the saving method, the more likely you are actually losing money thanks to inflation. So as always it's just a matter of picking where on the risk spectrum you are comfortable being, and diversify if you really want to have a little piece of the crypto action while maintaining some level of security and peace of mind.

 

[IronWing]

The way people are viewing cryptocurrencies now are the same way people must have viewed the early stock markets. They're volatile, they're lacking rules and regulations, they're a waste of time, they have no future, etc. Essentially it's an immature are of finance, but I think many are missing how integrated cryptocurrencies are becoming within the banking system, and through other, more interesting FinTech applications on the horizon.

Yes, there are safer ways to save money. But the safer the saving method, the more likely you are actually losing money thanks to inflation. So as always it's just a matter of picking where on the risk spectrum you are comfortable being, and diversify if you really want to have a little piece of the crypto action while maintaining some level of security and peace of mind.

Speculating on cryptocurrencies is fine if you recognize that is what you are doing just like speculating on any other currency. There is no underlying economic activity to support viewing currency speculation as an investment other than converting electricity to heat.

 

[Crono]

Speculating on cryptocurrencies is fine if you recognize that is what you are doing just like speculating on any other currency. There is no underlying economic activity to support viewing currency speculation as an investment other than converting electricity to heat.

If what you are trying to say is that cryptocurrencies don't actually do anything, that's false, depending in which cryptocurrency you are talking about.

If you are stating that cryptocurrencies have no inherent tangible value, that's true. Most currency transactions are digital and not directly based on "work" anyway, and the argument that I see often here that there's no economic force guaranteeing the value of bitcoin et al isn't true. It's just diffuse and decentralized (at this moment, anyway).

There is plenty of economic activity driving cryptocurrencies. What bothers people is that it isn't coming from the traditional fiat currency model, but is instead closer (admittedly not the same) to what we saw prior to the rise of government-issued fiat currencies, with individual banks and institutions being the guaranteers of value. Bitcoin and other blockchain technology is all about shifting trust. I think inevitably we'll see more of a push back to centralization and crypto won't be perceived as being at odds with governments (and many are co-opting the tech, as are intergovernmental bodies), but it takes time.

So while we are in a wild West of sorts with cryptocurrencies right now, it doesn't mean they aren't "real" money. It's not Monopoly money when it takes real hardware and power to produce it.

 

[dave_the_nerd]

(and many are co-opting the tech, as are intergovernmental bodies)

...examples of this?

 

[IronWing]

So while we are in a wild West of sorts with cryptocurrencies right now, it doesn't mean they aren't "real" money. It's not Monopoly money when it takes real hardware and power to produce it.

I'd have more respect for Bitcoin and others if they were flat out fiat currencies. Mining as a means of creating coins is a waste of resources.