Post
Topic
Board Economics
Re: Investing on Cryptocurrency is safer than saving or investing with local banks
by
Alpha Marine
on 22/08/2024, 16:50:16 UTC
Actually it has the potential to make gains even quicker than Bitcoin
Traditional banks do not make as much profit as we think they do. Most of them rely on loans and international exchange to make good profits in the banking system. Having a share in a bank would only potentially for more gains compared to investing in Bitcoin if the shares in that bank are above 5% or 10% anything below that is average.

Don't be so sure about that. Local banks make a lot of profit. I guess you don't have an idea of the amount of profit that they make yearly from the loans you're looking down on. We're not talking just payday loans in thousands, they give out loans in millions of dollars that they will receive a 10 to 20% interest annually for the next 5-10 years. I think you should read up on it before concluding.

One local bank in my country made a 120% increase in gross profit in 2023. They made over a billion dollars in gross profit that year. This may be a big bank in my country, but globally they are small and they make this kind of profit. In fact, it's rated 856th in the global ranking, it's the 4th biggest globally rated bank in my country, so imagine how much profit the bigger ones make annually.
Dividends to shareholders are paid from the net profit so that means after a year. shareholders have made more than a hundred per cent profit on their investments. And since it's paid "dividends per share", the more shares you have, the more dividends you'll receive.

Investing in Bitcoin would give maximize profit if large money is invested in it, and over the years may be a decades or interval 5 years. Bitcoin would yield more potential compared to the shares any bank could give.

Isn't that the same with almost every investment? A person who buys just one share and a person who buys thousands of shares in a company won't make the same profit, will they? And over the years will the share grow even further?