My money in bank backed or not real ?

[mrmacintosh]

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”.  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.

[ChiBitCTy]

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”.  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.

[Webetcoins]

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.

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.

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,

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.

[tygeade]

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.

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.

[justdimin]

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.

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.

[fuguebtc]

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$ .

[N.O]

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”.  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.

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.

[bestcoins1]

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.

[mamesso]

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.

[Tigerheart3026]

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.

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.

[Iranus]

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.

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.

[Farma]

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.

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.

[Republikcoin.com]

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.

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.

[Coyster]

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

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.

[legendbtc]

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.

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.

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.

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.

[bangjoe]

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.

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.

[retreat]

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.

[puloweh555]

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.

[Coyster]

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.

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.

[TastyChillySauce00]

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.

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.