Imagine receiving a POS withdrawal alert from my bank account without my consent. The experience was so devastating. It happened on a weekend, so I couldn't visit my bank. I placed a call to my bank's customer service line, and all I got was unending music over the phone. I was pissed off. Losing #20,000 just like that? That's about $25. I traced the transaction but couldn't remember which POS it was from. First thing on Monday Morning, I headed straight to my bank to file the complaints. They asked that I write down the details of the fraud alert, which I did. But to my greatest chagrin, these people never looked into my matter. I wasted more money on transport and going to the bank for the issue, but all to no avail till date. I expected an alert of a reversal for days and months, but it never happened. I have had other terrible experiences saving my money in our traditional bank here in Nigeria, and the summary of it all is that it has been a frustrating situation ranging from network congestion during bank transfers to hidden charges even when I receive money from people. Can you imagine that?
Well, Both centralized and decentralized saving methods have their advantages and disadvantages. However, our traditional banking system has caused me a lot of unnecessary stress when accessing my hard-earned money just because they have control of it. I wouldn't dispute the fact that they have been trying as well. Our ability to receive money from other countries and also through the use of ATM machines has been a great development from their end, but coming to hive, I now have broader knowledge about cryptocurrencies and how the transactions work. I also understand that the decentralized savings system has some risks to battle with, but with extra carefulness while transacting and a proper guide towards your keys, you are good to go!
For the benefit of those who do not understand what decentralization and centralization mean, I will explain them in layman's terms very quickly. Centralized systems are the traditional banking systems that save our money for us, and when we initiate a transaction, they will help us carry it out with their almighty charges, while decentralized systems are the crypto savings, just like hive, in which you and I have total control of our money at any time. You do not need the approval of any bank before carrying out your transaction; it is just you and you alone at your convenience.
Now, unto my preference with reasons
I will choose a crypto wallet over a bank account for savings over and over again. Comparing crypto to our Nigerian banks isn't even an option for me, knowing how the crypto world works. With my savings, for example, in HBD, which is a stable coin, I will have nothing to worry about my money getting devalued just like it used to happen with our naira in banks due to inflation, but rather enjoy the 20% APR interest rate. Also, by saving my money in a liquid hive, I will stand a chance of getting a cool profit, sometimes 3 times my capital, when the market goes green. So should I save my money again in our bank with their hidden charges? Even with their fixed deposit interest rate in the bank, it is still so low compared to what crypto has to offer. However, because crypto is not legalized in my country, I still need to convert my crypto to naira and have it withdrawn from the bank. This is what I do now instead of saving it for the long term.
Ways in which traditional banks can improve for me to consider them for savings.
If our bank can curtail the way they charge people secretly,then I can consider them. They can improve with their interest rate other than the low interest they give out. Their online customer service isn't good enough, especially when there is an emergency. They need to work on that and make online activities for the users so easy and fast that they avoid visiting banks physically except on their will and remain in the one thousand and one queue of humans in the bank.
In conclusion, both centralized and decentralized systems of savings are good in their own ways, despite their shortcomings. However, staying alert, being more careful, and guiding your account jealously can reduce unnecessary fraud issues that are encountered sometimes.
This is my entry to the #hivelearners community contest on the topic "centralized or decentralized."
Please note: thumbnail image was designed using canva app