Should You Use Bitcoin as a Savings Account?

Yes. I think it’s a good idea to use Bitcoin as a savings account but you don’t have to put all of your money into the world’s oldest cryptocurrency.

I’ve been using Bitcoin as a savings account since 2019 because I find it much easier and more lucrative to save BTC versus USD due to Bitcoin’s unique properties and characteristics.

I realize that most people feel comfortable saving money in a traditional bank account or HYSA to earn interest, which is perfectly fine if you don’t mind inflation destroying most of your purchasing power over time.

In the past, I always saved up a ton of cash and then nearly went broke due to a loss of income, an emergency, or a health scare. That’s when I got fed up and switched to the Bitcoin savings account strategy in 2019 and haven’t looked back since.

What are the Advantages of Using Bitcoin as a Savings Account?

  • Savings in a Hard Deflationary Asset: Saving your money in the form of a hard asset is the best way to preserve your wealth over time. Gold, real estate, and Bitcoin are good examples of hard assets that appreciate in value during periods of inflation.
  • Easier to Stay Motivated: Joining the Bitcoin network gives you extra motivation to save money and increase your BTC stack.
  • YoY Growth Higher Than HYSA: Most HYSA pay around 4 to 5% yield while Bitcoin returns 90% on average annually over the last 10 years. There will be ups and downs but holding Bitcoin may outperform traditional interest savings accounts over the long run.

What are the Disadvantages of Using Bitcoin as a Savings Account?

  • No Interest Earned: Bitcoin doesn’t earn interest like a savings account so you won’t grow your stack unless you convert more fiat money in Bitcoin over time.
  • Security Risks: Governments haven’t regulated Bitcoin yet so there is the risk of getting hacked or having your crypto stolen.
  • Inability to Pay Bills Directly in Bitcoin: Bitcoin isn’t widely accepted yet so most crypto investors must sell BTC to receive fiat currency in return.

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