The fist rule of thumb here is that we don't or hard to give financial advise as everyone might have a different approach.
And this is obviously a Bitcointalk community, so majority here might say that Bitcoin is better than banks. The thing that differentiate is that you have total control of your funds with Bitcoin, it is not locked like in a bank. Although you really need to have a good and proper security hygiene so that you won't fall from the scams. But it's the strength of Bitcoin, everyone is responsible.
Even in the bitcoin community, there would be some folk left who were managing their assets wisely before bitcoin was a thing. I liked the explanation from d500, he clearly explained how I should approach . If you love something, taking benefit from bitcoin does not mean you are going to give a biased answer for bitcoin.
Anyway, 11.5% on your FDR is quite high, something I might not find here in my country. But I'm sure it's heavily taxed, right?
It will be the normal tax which everyone are paying called income tax. But the problem is the inflation, that is what I do not like about savings, inflation will eat the profit.
yes the only tax I would need to pay is 10% on the interest I am getting.
Over here in Nigeria, I have used a microfinance bank offering a 15% - 18% yield depending on the lock up time, with an auto-compounding added feature. And, if you want to question it's legitimacy, the name of the microfinance bank is Opay, you can go look it up. It even offers 22% short term lock up for first time investments.
I think these interest rates varies from country to country, in my country with high inflation rate, a 10% APR is quite low.
22% for a short-term lockup might be a promotional offer. But 18% interest is a lot, according to my country. Since your inflation is too high, you would know the actual difference.
Bitcoin is basically like a bank already, therefore there is no need for an actual bank anymore. And If I am going to diversify my funds, I will only do it on other investment instruments, so that they don't share the same risks. High interest rate alone cannot convince me to choose traditional banking, I mean, if in future, there could be a possibility of decentralized bank which deals with fiats, then I may consider and definitely not with the current traditional banking.
Yet I still need to pay from bank when I am buying my grocceries. Bitcoin is a good alternative option but it did not get that much popularity that you can pay your daily neccessary with the Bitcoin itself.
Let's assume that the average inflation rate for 7years is 8%,
And if you happen to invest 100k in your currency with 11.5% return annually,
That would more than 200k in 6-7years, but it's purchasing power would be around 130k in todays value.
You indeed double your money (in numbers), but the issue is its purchasing power after 7 years.
Let's assume I have invested my money in Bitcoin, and it goes from 100k to 200k. When I cash out, am I getting any extra money for inflation? cause in your opinion, Bitcoin is a guard for the inflation, and Bitcoin doesn't experience the effects of inflation. My bitcoin amount is sitting on 1 BTC, it is not increasing to 1.1, so basically the same theory can apply here, it is a misconception of yours.
So if I invested on BTC I would likely get a 2x - 3x on next bull season. If I count it as 4 year cycle then to make next leg up I would need 4 whole years sitting my fund.
What about investing a portion in altcoins? Under the right circumstances, returns could exceed 2x -3x. Also, you don't necessarily have to wait four years; can shorten that timeframe by investing, say, a year or two before the bull run begins (you can estimate the timing by looking at past cycles), while the bitcoin are still relatively cheap.
It is much riskier than bitcoin , If I would have consider this much risk with my portfollio than I would not have considered a safer investment through bank over bitcoin.
