Bank and Bitcoin
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
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.