My money in bank backed or not real ?

[justdimin]

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.

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.

[Fortify]

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.

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.

[summonerrk]

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.

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.

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.

[passwordnow]

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.

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.

[Samlucky O]

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.

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.

[dezoel]

I feel like if we are not really caring about any of this, then we are going to be really getting something good in return and we should be seeing this getting a good result in the end. I know that  a lot of people will forget that we are not going to see the money itself, so there is really no reason to think if we have it backed or not neither. I mean it is not fully backed that part is true, but it doesn't even matter neither.

One of the main reasons why I am in crypto world is that back in the day when I first heard about it, I knew that bitcoin was "real" money, because I actually owned it, whereas in fiat world most of our money is in banks, not like we end up doing anything about it, but that's the most important part.

I feel like we should care about that a lot more. And if we can just ignore the part where it is not backed then we won't care, if we care about it then we are not going to really do anything about it, aside from maybe putting all our savings into crypto. This is why I think we should be considering this as nothing that crazy, it is not really that great and we can't really make anything bigger about it. We need to consider this as the most important part.

[shinratensei_]

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.

good news is, lately there has been so many USDT alternative released, lately it was USDE, now it's USD0, most of them are stablecoin with overcollateralized mechanism and some of them backed by T-bills.

I think some good chunk of USDT market cap will move to some of these stablecoin, although people are already getting used to using tether anyway, but it's still good to see alternative where I can diversify my stablecoin holdings to prevent depegging if the worse comes to worst so I'm not really worried.

so if we're concerned about USDT reserve, we can always move on to another blockchain.

[FinneysTrueVision]

We won’t ever be entirely sure if a bank is fully solvent until there is a crisis. You can’t really do a “proof of reserves” with fiat like you can with crypto. There might be some minimum capital requirements but if they are not being audited we are not able to verify if they are following legal standards. The risk of financial collapse might not seem likely so banks might be willing to risk a fine or jail time by investing or lending much more than they are legally allowed.

[ndutndut]

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.

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.

I have also read, the purpose of bitcoin was created because at that time, in addition to the economy being bad, the bad banking system resulted in increasing inflation. Another purpose of bitcoin is to make a transaction tool that will be widely adopted by the world to protect against inflation, and with the presence of bitcoin gives you freedom.

So it is not surprising that as you said the government and banking system always challenge cryptocurrencies, it is no wonder that bitcoin is always rumored with negative news, some say bitcoin is a scam, some say it will encourage money laundering and some say other illegal activities but all are refuted because until now bitcoin continues to grow higher. This is very different from banks like the example you gave, indeed when we save money in large amounts but when making a withdrawal the bank will ask for a few days, it is even true that making withdrawals every day is also limited. On the other hand, banks also have many cases of fraud.

[summonerrk]

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.

good news is, lately there has been so many USDT alternative released, lately it was USDE, now it's USD0, most of them are stablecoin with overcollateralized mechanism and some of them backed by T-bills.

I think some good chunk of USDT market cap will move to some of these stablecoin, although people are already getting used to using tether anyway, but it's still good to see alternative where I can diversify my stablecoin holdings to prevent depegging if the worse comes to worst so I'm not really worried.

so if we're concerned about USDT reserve, we can always move on to another blockchain.

Yes, there are already a lot of alternatives, and many of my friends, on principle, did not buy USDT but used BUSD, which in 2023 lost support from Binance. I don’t know what stablecoins they use now, but I think it’s definitely not USDT anyway. However, Tether for many is convenience and they don’t care about the background, and it’s like using credit cards, in which everyone sits for convenience and no one cares whether the numbers on the screen are backed by real money.

[Republikcoin.com]

So it is not surprising that as you said the government and banking system always challenge cryptocurrencies, it is no wonder that bitcoin is always rumored with negative news, some say bitcoin is a scam, some say it will encourage money laundering and some say other illegal activities but all are refuted because until now bitcoin continues to grow higher. This is very different from banks like the example you gave, indeed when we save money in large amounts but when making a withdrawal the bank will ask for a few days, it is even true that making withdrawals every day is also limited. On the other hand, banks also have many cases of fraud.

I have even considered that saving more money in the bank will be quite troublesome for ourselves when we need a lot of funds in one working day even though it is our own funds so that the bank and the government are also not transparent enough in managing other people's money in this world. So what is more worthy of being aware of about fraud is on their side (banks and governments) not on Bitcoin which can still grow well without relying on banks and governments forever. And everyone has certainly seen that through the history of Bitcoin which in every cycle there is always better growth.

[uswa56]

So it is not surprising that as you said the government and banking system always challenge cryptocurrencies, it is no wonder that bitcoin is always rumored with negative news, some say bitcoin is a scam, some say it will encourage money laundering and some say other illegal activities but all are refuted because until now bitcoin continues to grow higher. This is very different from banks like the example you gave, indeed when we save money in large amounts but when making a withdrawal the bank will ask for a few days, it is even true that making withdrawals every day is also limited. On the other hand, banks also have many cases of fraud.

I have even considered that saving more money in the bank will be quite troublesome for ourselves when we need a lot of funds in one working day even though it is our own funds so that the bank and the government are also not transparent enough in managing other people's money in this world. So what is more worthy of being aware of about fraud is on their side (banks and governments) not on Bitcoin which can still grow well without relying on banks and governments forever. And everyone has certainly seen that through the history of Bitcoin which in every cycle there is always better growth.

In this case, I agree with you that saving a large amount of money in the bank will have many requirements given by the bank that we must meet when we want to take it in large amounts or withdraw all the funds we have in a bank and if we cannot meet these requirements, of course we cannot get the money that we deposit in the bank even though the money belongs to us,  So it's a good idea for us to only keep some of the needs we need in the bank and invest more in the form of investments that we can indeed manage ourselves well and this I think will benefit ourselves compared to the profits we get from saving money in the bank in large amounts.
We have all seen the growth of Bitcoin in recent years continue to develop well and if we choose to invest in Bitcoin, of course this will be very good and we can manage the funds we have from that investment ourselves.

[CK485]

In this case, I agree with you that saving a large amount of money in the bank will have many requirements given by the bank that we must meet when we want to take it in large amounts or withdraw all the funds we have in a bank and if we cannot meet these requirements, of course we cannot get the money that we deposit in the bank even though the money belongs to us,  So it's a good idea for us to only keep some of the needs we need in the bank and invest more in the form of investments that we can indeed manage ourselves well and this I think will benefit ourselves compared to the profits we get from saving money in the bank in large amounts.
We have all seen the growth of Bitcoin in recent years continue to develop well and if we choose to invest in Bitcoin, of course this will be very good and we can manage the funds we have from that investment ourselves.

Saving money in the bank in large amounts is like that, because it has its own advantages and disadvantages, it is better to use the money for land investment because you can get a decent percentage of profit because the price of land continues to climb every year and that is an alternative but it depends on the situation whether it allows it or not.

[Marvell1]

In this case, I agree with you that saving a large amount of money in the bank will have many requirements given by the bank that we must meet when we want to take it in large amounts or withdraw all the funds we have in a bank and if we cannot meet these requirements, of course we cannot get the money that we deposit in the bank even though the money belongs to us,  So it's a good idea for us to only keep some of the needs we need in the bank and invest more in the form of investments that we can indeed manage ourselves well and this I think will benefit ourselves compared to the profits we get from saving money in the bank in large amounts.
We have all seen the growth of Bitcoin in recent years continue to develop well and if we choose to invest in Bitcoin, of course this will be very good and we can manage the funds we have from that investment ourselves.

If it is your money and you are the real owner of it, you will easily answer questions or provide information that the bank requests. I don't think they are giving you a hard time and don't want you to withdraw your money, what they are doing is to make sure you are the real owner. I don't deny that this may seem complicated but this is how they protect their clients assets, they have no intention of keeping or taking your money. What is the largest amount you have ever withdrawn?

But the idea of ​​putting most of your money in the bank is a bad idea because of inflation, currency devaluation...people have talked too much about that. Instead, we should diversify into inflation-hedged assets such as gold, land or bitcoin...you can both reduce risk and increase the value of your assets.

[Tigerheart3026]

In this case, I agree with you that saving a large amount of money in the bank will have many requirements given by the bank that we must meet when we want to take it in large amounts or withdraw all the funds we have in a bank and if we cannot meet these requirements, of course we cannot get the money that we deposit in the bank even though the money belongs to us,  So it's a good idea for us to only keep some of the needs we need in the bank and invest more in the form of investments that we can indeed manage ourselves well and this I think will benefit ourselves compared to the profits we get from saving money in the bank in large amounts.
We have all seen the growth of Bitcoin in recent years continue to develop well and if we choose to invest in Bitcoin, of course this will be very good and we can manage the funds we have from that investment ourselves.

Saving money in the bank in large amounts is like that, because it has its own advantages and disadvantages, it is better to use the money for land investment because you can get a decent percentage of profit because the price of land continues to climb every year and that is an alternative but it depends on the situation whether it allows it or not.

saving large amount in the bank, its disadvantages is more than advantages,
because bank can not provide all of your money in one day if you are just saving account holder,
in business man that will be different matter, but also business man can not withdraw all of money in a day,
bank ask many things. lend investment is almost risk free because lend price will never down,
it's price up in every year although it will be long term investment.

[Argoo]

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.

I have to disagree with you. The fiat of any state is primarily supported by the economy of this state. The stronger the economy of the state, the stronger its national currency. Fiat also depends on the correct actions of the government in the financial sphere, legislative regulation of financial activities, the level of corruption in the country and a host of other internal and external factors.

Both private and commercial stablecoins depend on all of this. But in this case, there is an additional risk of direct fraud or incorrect actions of the company itself, which issues and circulates this stablecoin.

[Smack That Ace]

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.

I have to disagree with you. The fiat of any state is primarily supported by the economy of this state. The stronger the economy of the state, the stronger its national currency. Fiat also depends on the correct actions of the government in the financial sphere, legislative regulation of financial activities, the level of corruption in the country and a host of other internal and external factors.

Both private and commercial stablecoins depend on all of this. But in this case, there is an additional risk of direct fraud or incorrect actions of the company itself, which issues and circulates this stablecoin.

I agree with you, the value of fiat depends on the health of each country's economy. If they have a strong economy, their currency will be worth more than countries with weaker economies. Fiat represents the economic power of a nation.

But to compare which is safer, I side with fiat, I feel more confident depositing money in banks than depositing stablecoins in centralized exchanges. I would rather trust the government than trust private companies that don't have clear audit practices and they are also centralized organizations.

[fullhdpixel]

If it is your money and you are the real owner of it, you will easily answer questions or provide information that the bank requests. I don't think they are giving you a hard time and don't want you to withdraw your money, what they are doing is to make sure you are the real owner. I don't deny that this may seem complicated but this is how they protect their clients assets, they have no intention of keeping or taking your money. What is the largest amount you have ever withdrawn?

But the idea of ​​putting most of your money in the bank is a bad idea because of inflation, currency devaluation...people have talked too much about that. Instead, we should diversify into inflation-hedged assets such as gold, land or bitcoin...you can both reduce risk and increase the value of your assets.

I do agree that it is something that will take a while if we are dealing with banks getting a lot more situation, it is not really that that easy to get banks to agree with what we want just because we actually own it. For example, a person I work with was working on building stuff, and they built something (an entertainment place, I do not know the name in English) it's basically construction, and it was in another nation, and all of that money came to his bank here in our nation and that is why I think it has to be something that will take a while for this to put to his bank account.

Because bank froze his account and money and took him a month to reach to his money and provide proof of ownership of that money, sure he got it, but for a month he had to deal with all of these. This should not be something that would be okay, it's something that will be all that much trouble. I think it's clear that we are going to face a lot of trouble with banks so crypto is better.