Bitcoin Forum

So If i have money in bank is like i have crypto in my wallet? If i see i have 3000 usdt balance i can take it out send it exchange so i know that its there and real.
But in bank my balance might 3000 but bank only got real money the cash or some virtual digits or units 1500.
If they got no equal amount what i actually hold then it's scam.
By BASEL 3 New rules capital requirement it's end of scam you can't just show on the balance sheet what you actually don't have.
By basel 3 rules small banks goes to bust.
So in this case there is a lot questions to ask what is the money and how secure is the system of recording our money.
And even some random peace of stone are more as real money currency then money we think we have in the bank.


That's why If we talking about "having the money" only if it's cash or crypto stablecoins.

Off course even some crypto exchangers show balance what they actually don't have but crypto exchangers not so scammy like Banks the Banks i remember fanny mae and other ones lent out mortgage deals what they did not have ownership and people in USA just lost homes.

Money in your bank is just a digital balance of what they owe you. You can never be 100% certain that you won’t get your accounts closed or some kind of worldwide depression causes banks to enforce max withdrawal limits per month or something. Be your own bank, save in Bitcoin.

Let's assume if I agree with this topic and it's proven to be right. Eventho the money in our balance is not "real", the reason why bank is still trustworthy is bacause it is regulated and guaranteed by the government, so if anything went south government will take action in protecting the client's money and right, but in some country there is always a case where a bank went bankrupt or there was a corruption case, the client will be facing with a difficult procedure in order to get their money back.

Nowadays since alot of countries take bitcoin as their legal payment system, if anything happen, the country who hasn't regulate the btc cannot do much for the holder.

It's true, as you said, save your savings in Bitcoin to ensure more security, but we also have to have savings in the bank, even though we can't guarantee it 100%, at least the bank is supervised by the local government, especially state banks which are supervised by the government through state-owned companies, so we have to be sure that the money we save in the bank is 100% ours, if things happen that we don't want we can claim to the government so that the problem can be resolved properly and with full responsibility as long as it's not from our negligence, because when bitcoin When we sell, the money will flow to the bank too, from there we make transactions to be able to disburse fiat money so we can use it.

It's allmost like the binance futures position you hold futures positsion what you think you have
Your money what you think it's your money not the spot but it's the futures leverage position your bank balance is pretty much like unrealised profit the ROE.

Well said. Any money that's in your bank is only a digital asset you can claim but doesn't mean it's a physical asset like the cash you hold in your hands. I see these digital balance as assets which you entrust in the hands of your banks to keep it safe for you since they have more facilities of ensuring your money is safe and in return they charge you for the services they render to you through taking their bank charges. While those funds remain in their custody, you can't touch them until they are sent to you. Even when you withdraw money from the bank, the bank has to give wire you the money before it can be transferred to your custody.

In the past, before the coming of the banking system, people deposit their money into saves which are readily available for them to withdraw and use, while this seems to be easier for people who needed to access their funds in the earnest, it wasn't the best way to keep cash because oftentimes people were robbed off their hard earned money due to the less security attached to those funds. This was one of the most reasons why banks were introduced.

It's both!
The money is not real, and it's backed by other money that's also not real.

This is an oversimplification and a fundamentally flawed understanding of how banks work.  Banks dont hold all of their deposits in cash. They invest a portion of it to generate returns.  Do you forget that in a similar way as you left your money in the bank, someone else can request a loan from the same bank? Where do you think that "extra" money is coming from?  And did you know that banks can also receive as well as give loans to other banks?

Your understanding of the banking system is flawed, as its not exactly comparable to using a safety deposit box.

The money in your bank is real enough that billions of people transact in it every single day and it keeps a reliable tally of people's money. If a bank starts losing people's money then it quickly goes out of business and every depositor in developed countries will have their money assured by the central banks. There is always vulnerability and extreme possibilities in any system, including cryptocurrencies, but trying to push illogical arguments forward does not help the cause. Bitcoin does not have the capacity to cover all transactions worldwide at a reasonable price point, however it is a huge market and there in room for many competitors to make money in it.

Bitcoin inventions has crossed that line that allows you not to be your own bank. Breaking the bonds of third party to your own money. Bitcoin may just be alternative to the fiat current used by banks but it sures provide maximum security and control of your own money. I don’t think anyone or company can save your money better than you’ll do, you’ll employ all security measures to safeguard that money of yours by all means possible.


Introduction of banks really came at the right time and people were able to save money in the banks without having to bother about robbers coming to steal their money. But as technology advances, many lapses were seen in this traditional banks which bitcoin also came in to address, it may not be able to address all but at least it addressed the most important ones which are a big concern today to those using these banks for saving their money.

I think the argument is they only need the equal amount WHEN you withdraw it. If they hold it, they can hold it as whatever the hell they actually want until you need it. It could die out on its own but since the government backs it, they're able to offset any problems just by, well, printing more money. It might be a bit surface-level take but at least that's how I think of it. And there's reason why people trust it, cause if the government goes down then pretty much society went to hell already.

Banks only keep a fraction of deposits as physical cash and the rest is just virtual - numbers on a screen basically. So yeah, if everyone tried to take out all their money at once, the bank wouldn't have it.  It makes you wonder if the system is a bit of house of cards.  How real is the money we think we have in savings and checking accounts? More real than some shiny rock perhaps, but still makes me uneasy how much banks lend out versus what they actually have liquid.

I know our financial system is more complicated than I can probably wrap my head around.  But I do wonder how sound it really is if it's based on money that doesnt fully exist.

I have always been surprised at how cleverly the banking system has made the exchange of cash for cards among the population. At the same time, no one has thought about the reality of the money on the balance and about security.
And I am not only talking about hacking, but also about the fact that the bank can block all accounts of any user with a snap of the fingers. And if you consider that the money on the balance can only be numbers, then it turns out that in exchange for convenience we have forgotten about the security and independence of our money.

Money in your bank account aren't real. If you think that's a lie then try to withdraw everything you have to cash and see what will happen. Infact banks don't have cash, they prefer you spend the money digitally. In my country banks don't have cash in the ATM machine and when they do, they restrict how much you can withdraw daily because they want to encourage cashless policy to hide the fact that they don't have funds to back all the money under their custody. There's also a very small percentage of insurance so incase the bank goes bankrupt, they can only settle you and not gives you all your money


Crypto exchanges and banks operates in the same well, which is why we're advice to never store our crypto on exchanges. The only money you can call yours is Bitcoin in your personal non constodial wallet and not stablecoin or altcoins because they all can vanish without any trace just as other crypto has vanished and all their investors got nothing in compensation.

Centralized exchanges and banks are same, including lending companies or any other centralized projects.

You might think centralized exchange aren't like that because you always able to withdraw your coins, but you should try with huge amount like withdrawing 100,000 Bitcoin at once or at least $1 Billion+, I really interested to know the answer.

Remember, this not only limited to CEX and banks, it also applies to coins runs in non native network e.g. Wrapped Bitcoin, Bitcoin BEP2 and so on.

Keep only money in bank that much what you are willing to lose or you accept that you might not have full control over your money some period of time or only limited options to access your money.

In war time many countries have rules that banks can take people money to use it for military expenses for example the Finland is kind of country where is this law.

I would say that at this point, banks are safer than crypto exchanges because there have been many crypto exchange hack and scam attempts and when you lose Bitcoin, that's lost forever while with banks, you still have a chance to recover money.
Btw as wise people say, not your keys, not your coins. When your cash is in bank, it's not your property anymore and when your coins are deposited on exchange, they are not yours too. Money is only yours when you have cash in your pocket and when you control your keys. (Btw money is still the property of the governments because they can print as much cash as they want and they can make it bankrupt anytime they wish).

Every bank sets daily restrictions on the amount that you can withdraw and that's because ATMs are small, there aren't millions of dollars in each of them and they have many users every day. Limit helps them to store some amount of money and not worry about ATM going cashless in a week.
By the way, you can get a premium card and get higher limits but you'll have to pay more for that.

But one thing is for sure if you or anyone here wants to withdraw a large amount of money, they will be able to accommodate it in full.

The numbers on the screen may be virtual, but everything is controlled by central banks and governments. Furthermore, what good is issuing so much cash when we have to spend millions more dollars to print and distribute it? And have you ever witnessed cash shortages and services refusing to accept payments using bank accounts in your country or anywhere? I believe that has never happened and I have never encountered that in my country.

I think the imbalance between cash and numbers on screens is something we don't need to worry about because governments and central banks will address this. They will ensure that your money or everyone else's money will be used legally whether in physical or digital form. What we need to care about is diversifying our assets because everything has risks.

Yeah I get your right,this days money in the Bank isn't 100% safe anymore cause the amount you put there won't be the same amount you are to withdraw when the need be, normally they would say it's service charge and all of that but if anything happens like unforseen circumstances that involves robbery attack,fire incidence,incompetency of the bank that led to the close of it and alot more,so what would become of the owners.

Comparing it to crypto,it's safer secured and reliable,amidst all those circumstances Bitcoin will surely survive and stand firm so I think it's the real deal here.

Everything has risks, whether it is banking or bitcoin, nothing is 100% guaranteed. Banks are businesses too and they want to make money just like we do. If you feel their service is too expensive and not worth using, don't use their service. But if you want them to hold your money for you, you need to pay them certain fees because they are a business, as I said. Like other services on the forum, you also have to pay a fee if you want to use it, no one will lend you money without interest...

I don't know your country but in my country, bank deposits are guaranteed by the government. If the bank fails, the government will step in to fix it, although it will take a long time to get the money back.



Yes, in some cases, holding money in bitcoin is safer than relying on a third party. But bitcoin is not an ideal store of value or safe haven. Bitcoin's high volatility makes it more suitable for investment. What if your savings are in bitcoin and the value of bitcoin drops 50%?

The solution here is to diversify your assets, everything has pros and cons so don't put everything in the same basket.

Actually, I have. This happened many times in the past (and still happens) in countries with unstable economies or during the transition of political systems. For example, during the financial crisis in Greece, many banks imposed strict limits on withdrawals and transfers.

You are probably among the lucky ones who live in a country with a stable economy and a well-functioning banking system. But unfortunately, many people don't.

What is real for you?
For me, a medium which can get me stuff (food, electricity, water etc.) is real.

When you have crypto in your wallet, that's one story. If it's a noncustodial wallet, the coins are truly there, truly available. You might lose some value because the prices can change, but your balance in the currency you own is true.
In case of banks, I'm pretty sure they don't have enough money to cover all the "balance" of their customers. That's why banks go bankrupt if people suddenly withdraw tons of money from their accounts. So there's always a risk here that the money is just numbers and you can't actually get it all (normally you can, but if too many people do it at once, it becomes impossible).

Theoretically, money or currency that were issued by the Government should be back by precious metal reserved like gold and silver, but nowadays, but currently the gold standard isn't used by any country at all, the first country which abandoned the gold standard is USA in 1933 and the last country which abandoned it is Switzerland in 1999.

Nowadays, our money is only backed by Central Bank and Government by making regulations and laws. So, realistically the money in our balance is merely just digital number which isn't backed by anything but laws.

Saving money in the bank means security in the future, but if the interest rate of the bank is not high, then saving money in the bank will not bring much benefit. But in other countries, if you keep money in the bank, you definitely get more profit and if you keep the money in the bank, the security of that money is much higher. But in my Bangladesh, if money is kept in the bank, the money is embezzled and the people's money is smuggled and the bank goes bankrupt, as a result, the people's trust in the bank has been lost.

Saving money in the bank doesn't actually provide many benefits, there is an excessive admin burden, currently it is better to save in BTC, in a few months it can provide benefits

 Agreed, we think Bitcoin is an alternative as your own storage bank, far from digital banks that continue to display the amount of your money, but different in value changes where the money you save will still have the same value while saving in Bitcoin you can monitor the fluctuating movements that occur in Bitcoin.

The banking system, is a system that does not deal with REAL assets. Moreover, banks don't actually work with their own money.  They take YOUR money. And a lot of other people's money. And they give these assets away to other people, in the form of CREDITS. So the bank has NO real money. But your card account, unlike the blockchain, just has numbers that the bank's accounting system has drawn to you, and these are SYNTHETIC numbers that have no real, physical confirmation. In blockchain you see the REAL picture !

I can confirm that no banks in the world holds 100% of their deposits in their coffers. This is not how the banking system works. usually banks lend around 70%-90% of their deposits and keep somewhere between 10% - 30% in cash or cash equivalent. That's why the economy is based on debt. Unless the bank loans out money, how would they generate income?

If all account holders of a bank tries to withdraw 100% of their money at any given point of time, the bank will collapse because they don't have it. This statement applies to every single banks in the world.

Stablecoins are even more dangerous! Your fiat is backed by the central bank of the country. Stablecoins are backed by a promissory note which is again backed by the central bank of the country. Economy depends on money circulation. There's no point in keeping the money idle because then the growth will be stalled.

Well, despite the drawbacks of bank, in my opinion bank is not completely useless. We might have huge amount in our bank account which will just be showing in a digital figure and if you want to move the money to somewhere else, you can still do that, after all its still your money but you can not just have all that money in cash depending on the volume. We know that it's only when you hold your money in your hand that's when you are rightfully in possession of it but if it is in the control of a third party like exchange or bank, they decide what happens to the money or not if anything goes wrong.

The size of the bank's reserves is calculated so that NONE of the customers can do such actions. But the total amount of daily transactions - outside the bank (other banks, trading networks with accounts in other banks, etc.) is calculated and provides such transactions. But try for example to initiate a withdrawal of more than 25-30% of the amount of the bank's assets they supposedly own, and you will be surprised - withdrawal restrictions will be imposed, with the promise of “we will fix it very quickly”. Next, most likely, funds from the state bank will be raised to finance/support such a bank, because otherwise it will be bankruptcy. And it could become a chain reaction.

People who can already distinguish the value of money from the value of Bitcoin will understand better when they want to save Bitcoin for a particular purpose and also keep money for a particular purpose. Because it is very clear that a country's currency whose value tends to remain the same even though its value can also be eroded by inflation will not provide any benefit to its holders except for buying certain goods. While Bitcoin can be considered an asset and can also be considered a future investment which has the potential to provide benefits to its holders even though each holder must also know about the risks when Bitcoin experiences a price drop at a certain moment.

I'm sure it is correct for say 40% of the banks in the US, about 20% in the country I live in and whatever percentage in other countries.
Sure is that banks invest in businesses, make money and have a useful function in regard to state-building.

Cash shortages can also happen and the banking system can also close if there is a war or natural disaster, flood...I have never experienced those things but I have read those news. But you cannot rely on those cases to blame or criticize the banking system...because those are unexpected incidents and do not happen often.

I am also a bitcoin investor like you, I am also not satisfied with many services that banks provide and I don't trust them completely either. But we need to realize that we cannot separate it from our lives or stop using it in our lives. So what good does it do us to speak ill of it?

People think about its safe to store fiat on banks since they think that they are safe from getting compromise. But they didn't even realize that they are wasting their time for deciding to do that since their main enemy is inflation and provably that they are just making the bank more richer since they can earn big with their deposit while them earn only few bucks or cents. But if they just invest it on bitcoin then maybe inflation maybe not their concern since the only thing they might consider is the rising up the bitcoins value and can get more better profits when it reach to another new all time high record. Although some people say its risky due to its volatility but we can settle up with this especially if we know how to deal with this characteristic and could able to accumulate more despite of the challenges we encounter.

It's just written or nominal. Which displays your balance in the bank account you have. But the money you save at the bank will definitely not be left to be kept in a safe, but the bank will use it to make a profit. So it's like lending capital to a bank. And banks use it to make more money. And in this case I prefer to use the bank for temporary storage only and not to store my money in the long term. Because apart from the risk of inflation, we also don't know how long the banks we trust will survive and not go bankrupt. That's why it's better to invest our money than to keep it in bank savings where our fiat will continue to be affected by inflation and its value will decrease.

This debate of been back by something is a long one and I think everyone will defend their own until the last. I'm talking about Banks fiat been back by something and cryptocurrency stablecoins been back by something. If you sit with some economists, they will tell you that fiat is more better because fiat is back by foreign reserve which is mostly dollars, check most countries central banks, that's what they do to protect their value and they will tell you that crypto is back by nothing, just air money but someone from crypto will defend crypto and say otherwise, it's a long debate.

You just need to know that what is keeping your stablecoins pegged to a dollar is because they backed by same fiats banks are using, if that accountability changes and sentiments is everywhere that USDT isn't backed by anything, the damage it cause in the crypto market will be beyond repaired. I just want you to know that Tether USDT is now worth more than $100b, pray it doesn't collapsed else we are doom already.

The best solution here is never put maximum funds in your bank account, just a small amount enough to cover your emergency needs. If you save for your retirement, saving in banks is a bad idea. The interest is very small, and you can't have the assurance if all your funds are still intact. Unlike bitcoin, the amount of returns can be life-changing most especially if you hold it for more than 10 years, plus you know all your savings are intact since you are just saving in your own bank.

Once upon a time, the only reason I wanted a bank was to store my deposits and buy things online. Now I don't really need a bank for that anymore. I can either hold stuff in BTC or in a credit union even. Or Paypal or any other online bank account. I've been thinking for a long time about withdrawing from banks entirely. I honestly see them as the poorman's cash holder.

This OP is a bit confusing the way you’ve worded it but if you’re asking if money in your bank acocunt is “safe”, the it would depend on a number of factors. Let’s take the United States. FDC insured bank accounts (most banks, especially most well known banks are FDIC insured) are insured up “$100,000” 250k. For a while in the US, the dollar was backed by gold, that ended somewhere in like the 1970s yet many citizens still believe it to be the case.

As with FDIC isurance, this classic scene in Tommy Boy comes to mind ( https://youtu.be/dAkSziqGk00?si=fPXV09r2hFYAD_o9 ).  Essentially it’s smoke and mirrors. If a large bank actually ever went under, I say good luck on getting your payout anytime remotely soon, if ever.

Now this is the US I’m referring to. Within other parts of the world your bank money is either not even remotely secure or maybe even a bit more so than within the U.S.  

Never heard of insured crypto accounts. Even if they are out there, I wouldn’t put much faith in them like I don’t with the FDIC.

It's $250K in the US.

Another thing is that the average person has no idea how money works unfortunately. To them, it just happens to have value and they sometimes don't get why prices go up and down. It's a sad reality. Prior to this, people knew the value of their dollar and the gold/ silver behind it. But education has been purposefully depressed to keep this knowledge from ever being taught against unless you go look for it.

Shit that’s right, I meant to type that.  I just got done helping a client with a retirement plan in plan Roth conversion and they were looking to convert 100k, so the number was stuck in my head.

Regardless it’s meaningless for the most part IMO. Also, as a long time financial advisor, I see the lack of knowledge surrounding money and finance on average at a shocking level, on a daily basis.  It’s pretty mind boggling.

Even the physical cash that we know is also said to be a money made out of thin air. Another thing that is crazy is they still have the guts to close our accounts. If it was some kind of a worldwide depression, I think that is understandable if they will only limit their customers in terms of withdrawals.

It would only be better if they will clear this out to their customers by the time they are applying at that bank and they can decide if they will still want to proceed, if not then they can follow your advice of using Bitcoin instead. This is the advantage of Bitcoin compared to other payment methods or currencies because it is multi-purpose.

If in terms of security I think they got improved but I think that is because the criminals have also improved but if it's about the way they work like what @DeathAngel is telling there, I think nothing have changed. They might be like that already even before. It is just that only less people knows it.

Technology have really taught us a lot of things. That includes the cryptos because it made us more aware about money and on how banking really works. Another reason for the decline of our money inside banks is the inflation and its growing rates, though I think banks are not totally responsible for it but governments too and others.

Well the "physical cash" was basically created as proof that you have money in the bank. The real story of that is the fact that many people back in the day used gold, and that gold was the currency, silver was used a little bit too and even in some cases copper too.

But it was mainly gold, but inflation happened in the old times too, and also there were very rich people too, after a while, I don't really know exactly when, it was harder to move that much gold every time you wanted to buy something, this wasn't the case if you wanted to buy some wine or bread or even a sheep, but it was the case when you wanted to buy a house.

So, what happened? You ended up giving your money to some bank, and that bank gave you a certificate that you own that amount of gold, and then you gave that paper to someone else, now they own that much gold in the bank. That's how it all started, that certificate became the cash that you hold in your hand, which is not backed by anything at all anymore.

It is both backed and not backed at the same time. You can withdraw, in that sense it is backed, and as long as bank goes on operating at the fine levels then it will not be an issue. However, in the sense that if default rates of loans goes too high, it is not backed at all, meaning that you will be at the mercy of the government. Think about it this way, you give 100 dollars to bank, bank gives you 103 after the end of the year, that's your deal as savings person, another person loans 100 from the bank, and pays them back 105 after a year, that is their deal, the bank made 2.

However, if you loan the bank 100, and they loan it to someone and that someone doesn't pay it back, how can the bank pay you back? If this happens in many billions, they bankrupt, along with your money. If that doesn't happen, then everything works perfectly as intended.

Do you think you could borrow money from the bank if they knew you were unable to repay it? Do you think banks are stupid enough to lend you a large sum of money without collateral or without knowing all your information? Even if you want to borrow a small amount of money from forum lenders, they have strict requirements, let alone borrowing money from a bank.


You can easily deposit any amount of money into the bank, the bigger the amount the more they like it but if you want to borrow money from them it is not easy at all? They are businesses and they have their own way of doing things, they are not as naive as you think .
Banks belong to the government and the government owns the money printing machine. So don't worry too much about how much paper money they have and whether they have enough to supply us . We just know that if we need cash , we can withdraw as much as we want.

@OP , just try withdrawing all the money in your bank account, you will know if the bank is short of money or not . I guess even if you want to withdraw millions or billions of dollars it won't be a problem for them, let alone 3k$ .

I think,in bank our money is safe because many authorities are behind which have expertise to handle the money. No doubt  ,banks use our money and they invest that money in stocks and bonds which are risky and from our money they buy assets by which they get benefits but now is time ,we have to understand the the whole concept about the money and bank and how banks use our money and how they double and triple our money by investment in assets and how they get benefits from our money? Every person should learn books and they should be habitual of reading books because this habit will give them excel in life.

The bank knows very well how to use every money of its customers in several things that can make them profit because it is very impossible for the bank to just keep the money of the customers without using it at all. Because apart from the bank who has to pay each of its own employees, the bank owner also really wants to increase his wealth through other important assets in this world so the bank will never stay silent by saving money but they will always move to make money multiply through their own customer funds.

Your money in the bank is just a number that shows the amount of balance you have saved, it is your money, but it is not entirely yours because the bank has access to manage the money. If you keep it in a small amount to make it easier to make buying and selling transactions, you may still be able to bear the risk if something happens to your bank account, such as a break-in or your account is suddenly closed. Make your bank account a temporary transit place when you make a withdrawal from the Exchange, after that you manage the money yourself to avoid any risks that may occur.

i have no doubt that banks and centralized exchanges are like to similar, because both are asking kyc but a lot of differences like in the centralized exchanges you can withdraw your coins at any time and any amount but when you are going to bank to withdraw large amount of money then they will ask to the reason to withdraw large amount of money this is the big different of cex and bank.

If I remember correctly CEX also has different withdrawal limits depending on membership level, you can't withdraw as much as you want if the amount exceeds your membership level.

For banks, when you withdraw a large amount of money, they will ask you to provide more personal information. This is not because they are giving you a hard time, but because they want to make sure that you are the real owner of that money. It's all a matter of security because if something goes wrong they will suffer huge losses and if I remember correctly all of that is within the bank's regulations. If you are not happy with those terms then you should not use the Bank in the first place as they do not force or need you.

There is also a huge difference between banks and CEXs, banks are directly regulated by the central bank and government. Meanwhile, CEX is just a private business organization and does not even have a license to operate in many countries. So it cannot be said that CEX and banks are the same.

For now, some people have certainly realized that the money they save in the bank will be used by the bank for their interests and in this case, of course, the bank will benefit more than their customers, but for those who have understood this, of course, they will not save their money in large amounts in the bank and of course they will prefer to manage their own money, such as investing in real assets that also have benefits from it.

What you said is very true, the bank must of course pay each of their employees from the profits they earn from the turnover of money in their bank and in this case the profits earned by their customers are very small compared to the profits earned by the bank, therefore if we want to make a profit from the funds we have then we must be able to manage the money ourselves according to the skills we have, because without the right skills it will of course be very risky in managing the funds we have.

I only keep enough money in the bank as a step for certain needs and actually I prefer to buy gold or bitcoin than to keep money in the bank. We only hold the amount of money in the bank book but we don't know whether the money is available or not. Especially if the bank in question is much smaller not a bank that has a large amount of money recorded on their balance sheet or cash. Don't know if it's a scam but if it's true that this institution has a license from the government and we are all fooled by their system and it sounds quite strange and unreasonable.

You should know that stablecoins like USDT are issued by a centralized institution and they can even be frozen in your own wallet, so hodling USDT is like having your money in the bank or hodling crypto in a centralized exchange, because you do not completely control it.

Having said that, i don't like to put too much money in my bank, due to inflation, the longer it stays there, the more value it loses. I prefer to spread my money across different appreciating assets and investments, which of course includes bitcoin stored in my non-custodial cold wallet.

But stablecoins are issued by centralized organizations, they are not even audited,and they are not strictly controlled. Meanwhile, banks are directly managed and supervised by the government. Although both are assets, centralized institutions, there are still huge differences, so depositing money in banks is still much safer than holding stablecoins on centralized exchanges.



Banks are not places we can fully trust, nor are they ideal places to store value because after all, we do not have full control over our assets and inflation will erode our assets. But we cannot deny its importance to us and I think having some savings in the bank for emergencies is not a bad idea. Diversification is the solution that gives us the most secure life.

Our money in the bank is just a number that represents the amount of money we save there, so there is a report according to what we save, it is true that we do not manage it but entrust the banks to keep money in their vaults, like that concept with certain conditions and requirements that you have to do to the bank.

Therefore I have never kept all my money in the bank because it is not us who control it, if they collapse and there is no liquidity to make withdrawals then we cannot withdraw our money from the bank, so save the money we only need for needs if we cannot save it ourselves, and the rest can be saved in bitcoin or money that we can manage ourselves without third parties.

You can ask your bank about this whether they really back your money or not. But as far as I know, the most banks back customer money is only 10% of the total assets, because the rest is already a fixed or running asset. That's why when you want to withdraw money from the bank in large amounts, they will reconfirm to their superiors, and you need to wait again until they approve it, because they need to maintain the liquidity of their money and not carelessly give cash to their customers even though it is actually the customer's right.

The purpose of banks is actually to facilitate barter transactions between people. When we want to buy land at a high price, we can't possibly have to carry cash, this is very inconvenient, not to mention if there is a risk of being robbed on the way. Banks are indeed there to meet the needs of the community, but as you said, banks actually only store customer money, only a few percent, the rest becomes current assets or even loans to other parties, so when we take or withdraw large amounts of money, the bank will give us time, this also happens in my area, usually if you want to withdraw large amounts of money, it takes a maximum of 3-4 days.

That's why don't like saving in banks, divert most of it to gold, btc and property, the rest is enough for monthly transactions. saving in a bank is the same as making the bank richer and we get nothing.

Absolutely, i didn't point out that difference because i think quite a lot of people should know that already, money stored in the bank is far safer than anything one has in a centralized exchange. Money in the bank is also insured up to a certain amount and if the bank fails, the customer gets some, or all of their money back, but that is not always the case in centralized exchanges, and if customers are going to get their money back, it takes a very, very long time, like Mtgox for example.

This is true, from my understanding, bank is utilizing the big money reserve that they have for investment to make additional profit, I think pretty much people who care to read about how bank works will eventually figure out that bank only provide certain percent of money as a liquidity for people to withdraw.

if OP somehow don't really believe banks, there's this thing called investing in gold and other high liquidity investment like bitcoin where OP can just sell their investment if he needs some money at some point and call it a day.
but since bank in itself is also heavily regulated by the government, i think using bank is just as fine as any other means of saving.

Don't keep too much of your wealth in cash, that's what many successful investors and the world's rich people say

so far i only have a little fiat money that i put in the bank, the rest i put in the form of investment assets ^{(crypto, stocks, gold)}

what i need now is just consistency because if i continue to consistently do my current routine then in the next few years i will get a multiple profit from the capital.

however fiat is always affected by inflation so don't keep too much money in the form of fiat that is put in the bank.

Money in Bank is not like crypto in the wallet , they are both different thi might be serving same purposes but for money it can't be backed up so easily whereas crypto can be backed so you see now the need of having cryptocurrency.
If money is backed it shouldn't be difficult to claim withdrawal when the need be but our local Banks always make this worse cause when you put in your funds in the Bank it's easier to do so but mostly when you got to withdraw it especially a huge sum you'll definitely follow some banks long protocols which makes it not suitable to keep putting money in Bank but rather have other modalities of where to save your money aside the Bank.
So your money in the bank is 50% backed and it's only real when it's cash and you can get hold of it.

Saving only in the bank is not the best way to grow wealth, except if you are at your retirement age and you shouldn't really be taking risks at that time. Possible interest in a savings or fixed deposit account is very low and unattractive. Instead of saving in the bank and watching my money lose value, i will keep only a small amount in the bank for emergencies and other whatnots, whilst the most of my money will be in different assets of varying risks, that's the only way to grow wealth.

agree with your view because keeping too much wealth in cash will not be productive. So it is necessary to have a view of how the money we have should be more productive where investment or running a business is a much better decision. Rich people think about how their money can work to produce multiples and people who like to be in their comfort zone will save money and do nothing. This is a big difference and level of understanding in making money because what is done will determine the results as long as they understand any process that is carried out. If investment is done consistently, the results obtained will also be good as long as people want to learn how to run investments properly.

Indeed, if we continue to save money in the bank, honestly it is difficult to develop it to be wider in the sense of the potential generated by each nominal amount, and to create a security that we will obtain, there is a need for more effective thinking for the scale of this money storage with things that can produce.

Saving money for years in a bank account can worsen your financial value from the impact of inflation, even though your money does not decrease from its previous value, the exchange rate of money will be lower due to inflation worsening the price of goods and services, all types of food increase and even some people have to go hungry because the financial conditions they save are not enough to buy daily food needs.

We must find other solutions to diversify cash in accounts into several types of parts for assets, gold, crypto and property, investing will be very profitable compared to holding cash in bank accounts. We should utilize the money we have for investments that generate passive income for long-term benefits.

But not everyone knows that as you think. I met some people on our forum, they said that using stablecoins and depositing money on exchanges is more convenient and safer than depositing money in banks. Their reason is that they can freely withdraw large amounts of money without being investigated or having to go through the cumbersome procedures required by the bank. I really don't understand what they are thinking when they say that using stablecoins and exchanges is better than using banks.

Honestly, the role of banking is still important in our lives and it is almost impossible to eliminate it from our lives. I believe everyone uses at least 1 bank account but many people like to badmouth it, which is confusing.

Your stablecoins are literally digits on the ledger, just like your fiat money. Banks don't have much cash reserves anymore but they do back their money. Stablecoins back their money also but if you would want them to change it to physical cash, it would cost you way more money, and would be lot slower process then in banks. While banks don't hold lot of cash, i'll sure you that you can get your 3000 out in physical money.

Although times are changing and cash as we know it will be out of the picture in maybe 15-20 years. And while this will happen, there will be time where cash money co-exist with cbdc, and also, removing physical cash doesn't affect either cbdc or usdt. Because both of them are just basically just a promise from the issuer that they are worth something.

y, reflecting on other people's experiences, I will also do that, to save my money a little bit just for daily needs without saving much in the bank, with the amount of money I have, I invest in several companies and it is very profitable and useful.

I don't know how experienced you are in investing. It is true that you can save some money in the bank for your daily life, but the bank has a digital code, but the bank has a very small amount of money. There are many who keep all their money in bank and earn good amount of profit and solve all problems in their daily life with that profit. But if like you they think that they keep only a little money in the bank and spend the rest of the money for free on various projects then it would be better to get it. If you are not experienced in this there is no guarantee that you will benefit. First of all you make an idea about it so that you know and understand all about it then you can earn good amount of money without doing it.

Actually, our savings in the bank are insured by the bank to another institution, for example in my country the banking here will insure customer savings below 130k USD to the government, and above that to special insurance, so if at any time the bank goes bankrupt, the customers will still get their rights - and I feel that in other countries this is also the same, but only the system is different. So customers need to make sure that their money is insured by their bank or not because that is more important than discussing whether their money is backed or not.

I agree with you because I have not seen anyone that became rich through savings rather it is always through investing and taking informed risk. Money in the bank is just another way of preserving the money to be spent in the future probably at a lower value because by then inflation would have reduced the value of the money. Depending the country, money in the bank do have insurance so that if the bank is liquidated, depositors will get their money back through the capitalization policy that some countries apex banks sets. This means the money in the bank have some level of security but that does not mean it will change the life of the owner unless it will be put to good use through investment. Saving money should be tied to a business or project, that is the way saving becomes useful else money saved in the bank is not just advisable.

True. I also rarely see people getting rich by saving in the bank, even the richest people do not save all their money in the bank, they will allocate half of their wealth to business and investment. Because saving in the bank the value of our money will continue to be lost by inflation and bank fees besides the interest rates on savings which are generally very low also make the growth of our money not comparable to the rate of inflation.

Because in essence to create wealth in the future we need to invest money, there are many investment options that we can choose and use as the development of our money including gold, property and btc. So, saving in the bank is also not wrong but just enough, this is so that we can do daily transactions and train discipline in managing finances. If you save too much money in the bank with a large amount, try and get cash from the bank, see what they say. Surely the bank will give us time to be able to make cash withdrawals, that means they don't actually have a lot of cash.

It is a known fact that banks engage on fractional reserve banking, which means that even if your balance shows that you have a specific amount of money, the reality is that the bank has only 10% or even less of that amount, this is what makes bank runs possible, so you should never store any significant amount of money in a bank as you never know when they may steal it with any kind of excuse and you will have no recourse against it, as most often this is a legal move they can make against you.

I disagree with you desperate that we are supporting cryptocurrency mostly Bitcoin that will not make me to see something that is not right and they accept such so I believe that your money in the bank is secured because it is a decentralized currency and then whenever you are looking for a means to sort yourself out from any challenge you have in your bank you have one particular place but you can then buy your report and they will sort out your problem so there is different between investment and the banking someone who is investing in Bitcoin is called investment why someone who is banking it money in the bank is not investment neither it is called saves

You make some very interesting points: on money and its status, the difference between holding cash and digital currency, and having a bank balance. While cryptocurrencies and stablecoins let you self-validate your holdings transparently, traditional banks have a different model that involves bank distribution-meaning, the banks hold only a fraction of the deposits as reserves and lend the rest. Basel III rules seek to try and address some of these issues with higher levels of capital requirements and improved financial stability. Yet, even then, the system requires trust and regulators' control.

You talked about how banking in the past had its problems, like the Fannie Mae issue that underlined possible risks and other problems within the banking industry. With crypto exchanges, while there may be issues sometimes, at least they always make it rather simple to glance at your balance. Of course, each has its pros and cons. Understanding these will better prepare you for decision-making on where and how to save your money.


For me I get it, in any case, investment with cryptocurrencies such as Bitcoin is different from investing in traditional banking. Additionally, investments in cryptocurrency can be very volatile and are treated mostly as intellectual property. This is particularly true for saving rather than investment. We all knew that the decentralized nature of cryptocurrencies allows for transparency and control. But it also brings risk and uncertainty. Banks, on the other hand, are more systematic. There is usually a guaranteed quota of poupança. It provides a level of security not always available in the encryption space. Both methods have advantages and disadvantages. And understanding those differences can help you make better financial management choices.



You are pointing to one serious problem that the quasi-reserve bank system contains-the fact that they keep only a part of the actual assets deposited within. The result could be rather risky: for example, enabling bank operations. This, when one wanted to take out money in bulk Of course, this system is based on belief and the assumption that not every investor will withdraw their wealth at a single time. Your fears about the safety of bank deposits are quite legitimate, especially if you happen to fear that the bank might tamper with your money or even find some reason to deny you access to it.

Contrasting with this, another direction opened by cryptocurrencies and stablecoins is oriented towards transparency and decentralization. If I add it also carries risks of its own, the possibility of volatility and problems within trading. The risks are a bit lower if diversified and when one understands the strengths and weaknesses for each investment strategy. Whether saving money in the bank or investing in cryptocurrencies, you need to be careful either.

Not everyone thinks so and dares to invest even though it cannot be denied that saving a lot of money in the bank is a loss for our future.
And to invest is for those who understand or want to learn, so it's all about mindset.

I used to not want to lose the savings I had so I preferred to save money in the bank, I thought it would be much safer but as my mind and knowledge became more open, investing for the future was much more profitable so that it encouraged me to learn many things about it in order to be able to do what I wanted.
We are not only talking about real money that is visible if we put it in the bank, but much more importantly when the money we have can produce or multiply more, I think that is the most important thing now.

Frankly, I don't see a good reason for this post and perhaps you didn't express yourself well. I wish you had read it with meaning before posting it, trying to downgrade the bank for crypto/exchanges is not smart because the government of your country backs the money you have in the bank through the central bank, which makes it more guaranteed than cryptocurrency. Many would say your money is backed in crypto but in the real sense, if anything happens, your money is gone for good. It is not obvious yet due to how the crypto space is structured, I hope there is no issue for you to know who truly backs your money.

And I wonder why you rate exchanges more than your bank, can't you use your money in the digital form through the bank like crypto? Why believe it is your money only when in cash? Can exchanges give you cash? Won't you still transfer it to the bank before you have true access to it? So why downgrading the bank?

 Actually, saving money in a bank with a category of banks that have very good trust will not be risky, and in contrast to banks with fewer Investor values ​​and enthusiasts, this is likely to have risks. Investors who have crypto assets and they are successful in their Investments will certainly be more involved in cryptocurrency and of course they are prone to choosing to save their money in the form of Investments.

Only a portion of Fiat that they save for daily or monthly needs, we also assume that saving money in your bank will only see the nominal balance listed in digital form. Investors will of course continue to speculate to double what they have earned and of course they will continue to choose to invest most of their money.

I am also very aware of this so far so that I only save as much as I need in the bank and even then not forever because the money I save in the bank is also often used for other business needs. However, some people in my environment still do not realize this so they still rely on the bank to save more money and this is also very much welcomed by local banks at this time because they are always looking for customers who continue to want to save large amounts of money in the bank.

Gold, Bitcoin, and property are very different assets and all three can still be relied on by everyone who wants to save money and save the value of their own assets. But for now I only save some of my money in Bitcoin and gold, while for property and others I have not thought about having it, maybe one day I will also try to buy some property as my future assets.

To be fair, fiat is backed by the power of the fiat printing machine, stablecoin is backed by just that company and that's it, nothing more. Meaning that if you have 250k or less in any bank, the whole government protects you, and that should be good enough, and you can do that, but if you have 250k in a stablecoin, your only backing is that Tether company will not steal it, that's it.

I think it's clear that you should trust government more than you trust some company in Bahamas. I am not someone who likes governments all that much, and I still can say that, because I can trust a government to be saving people over just few people at some company making a mistake. That is why I feel like it's critical that USDT is much worse compared to USD, to me at least.

Yup, it's about as real as cryptocurrency if we're talking about the underlying value of it. Much of that value is derived from trust, that is often built up over decades or even centuries of history behind the country. The trust comes from many things - how strong the economy of that country is, whether it's central bank is responsible, how much influence the government has over monetary policy and much more. It has led to a relatively stable situation for currencies like the Dollar, Euro, Sterling, Yen, etc. where they might drift over time and lose/increase value against other currency, but it is relatively low volatility. The same thing will happen with a currency like Bitcoin, in the long run the volatility should continue but it might have different triggers that influence the value.

This is true, and in my opinion, this is a very scary situation. Tether has long been unable to prove that its USDT stablecoins are backed by dollars. And in fact, we are really dealing with tokens that are not backed by anything. And the trouble is that they are so widespread that governments and most crypto guys are already using them. In addition, USDT is centralized and they have the ability to freeze tokens in any wallet.

While the confidence is there with established banks that are unlikely to get bankrupt but don't be sure with that. We've seen stable and known banks in the past that have been down, we will never know what they're up to and what they are going through. Remember the Lehman brothers in the past? so to say about it's not risky, there is still risk but it's low. Everything that we deposit will appear in our accounts and balances and they're real money on us but in a digital form but you can spend them in whichever you want through online purchases or anything that accepts payment directly from your debit/credit.

Definitely as time goes on I begin to understand the true meaning of decentralization and blockchain technology. The reason why the  value of bitcoin in wallet and the figure in the bank are not thesame. And I have also known the reason why government and the banking system  of most countries are kicking against cryptocurrency. Bank recieve real money and gives you digits equivalent to your money and use your money for business. If you decide to pay in money to bank, no matter the amount you want to fund it, is not a big amount to the bank. but during withdrawal time you have a maximum limit per day. Even when you want to get rid of all your fund like $1m from your bank, bank will call you for a private meeting to know why you want to opt out. because they know the value of money and will never want to lose it. But in bitcoin you have the liberty to do and undo without a third party interference. So bank is really a scam.