Ever since Bitcoin gained some mainstream traction, there have been people who openly oppose the idea. Some people will even go as far as claiming how keeping money in the bank is a much safer option. This is not entirely surprising, considering some people do not grasp the concept of financial freedom. With negative interest rates looming over consumer’s bank accounts, is it such a safe option as some people believe?
A Colourful History for Bitcoin So Far
It has to be said; Bitcoin has been attracting all kinds of unwanted attention as well. Malware and ransomware are giving cryptocurrency an even worse reputation than it already has. Anything that has some form of financial value will attract criminals sooner or later, and Bitcoin Is no exception to this rule, unfortunately.
Despite this negative attention, the success of Bitcoin is not diminishing by any means. Investors, and even regular consumers see cryptocurrency as a way to hedge against financial turmoil. At the same time, there are those who find this whole idea ludicrous, and strongly feel keeping money in a bank account is the safer option.
To put this into perspective, putting money in a bank account has some superficial traits that make it look safer. First of all, the funds are secured by a bank, who insure customer deposits up to a certain amount. Secondly, it is physical money, which they can touch at any time by withdrawing it from an ATM.
Banks Pose A Systemic Risk
But the downsides should not be ignored either. First of all, funds are stored by a bank, which means the consumer no longer has full control over their money. Secondly, negative interest rates will force users to pay banks to safeguard their money. Not an ideal situation for anyone in the world, to say the least.
Bitcoin does things very differently. There are no banks involved, as everyone becomes their own bank. There are no negative interest rates. Users are in full control of their funds This latter part also means they will need to secure their Bitcoin funds at all times, and no one will bail them out in the case of theft or loss.
It is evident for everyone to see banks are struggling to stay afloat. A financial crisis can hit a lot sooner than most people think. Keeping funds in a bank account is normal, but not necessarily the best option. Bitcoin is not without its risks either, but those are all calculated risks.Choices need to be made, and both worlds have their positive and negative aspects.
JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.