Banks or Bitcoin. Where is it more profitable to invest money?


The “Bitcoin fever” that agitated in 2017 had already subsided by 2018. Now that bitcoin has ceased to show its peak growth dynamics, it’s time to take a sober look at things and decide where it is better to invest.

There are dozens of ways to make a profitable investment, from buying real estate to participating in joint ventures. But most of them require specialized knowledge from the investor. Therefore, let’s talk about easier ways:

  • conservative – opening a bank deposit;
  • Progressive – buying cryptocurrencies.

Bank deposits

Bank deposit is a popular way of investing money. This is a reliable solution that is approved by law.

  • Advantages of depositing with a bank:
  • does not require specialized knowledge from the contributor;
  • deposits are insured
  • The work of banks is regulated by the Central Bank.

The downside is the relatively low profitability.

Such a low income on deposits is explained by the decrease in the key rate of the Central Bank. That, as a result, led to a decrease in the interest rate on lending.

Investments in Bitcoin

People are increasingly showing interest in cryptocurrencies. Despite the slowdown in Bitcoin’s growth, financial experts still view it as an attractive investment tool. And the Bitcoin market does not stand still: more than 200 types are already functioning. Pros of investing in Bitcoin:

  • No inflation. Bitcoin is not affected by inflation and other economic and political factors. Only supply and demand in the market sets the price.
  • There are no intermediaries. This means that operating expenses, traditional for banks, are not included.
  • High level of protection. Blockchain technology is the most reliable way to conduct financial transactions.


  • High volatility. Since there is a small amount of bitcoins in circulation, any transaction affects its rate.
  • Lack of legal framework. In Russia and in the world, there are no legal regulations regarding Bitcoin. Legislation simply does not keep pace with its development.

Banks VS cryptocurrencies

The banking system in the world has evolved over the centuries. This is practically no alternative way to carry out financial transactions. Anyway, it was before the advent of Bitcoin.

The very technology of blockchain fell to the liking of banks. And many of them are already starting to implement it. But the attitude towards digital currencies is rather negative, even though you can buy bitcoin with bank transfer. Both in Russian and in world practice, there is a blocking of operations related to Bitcoin. Some banks have banned the purchase of bitcoins with credit cards.

Cryptocurrencies were created as a counterweight to the traditional financial system. And judging by the fact that their capitalization is growing, banks will sooner or later have to start cooperating with them.

Of course, it is impossible to look at these numbers without tears. But it is important to understand that buying Bitcoin is a risky investment. In an unfavorable combination of circumstances, there could be no income at all, and if the exchange rate fell below the purchase rate, it would not even be possible to return the money invested.


It is obvious that a bank deposit is still the most reliable way of investing funds. But a low interest rate on deposits will only help to offset inflation, without bringing serious income. Bitcoin, on the other hand, despite the recent slowdown in growth, is one of the most promising instruments. But the risks of investing in Bitcoin are greater.

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