Topic: Holding money in bank you hold nothing (Read 507 times)

Investing what we have is one of the ways we can make money for ourselves without depending on the limited amount that we have. Creating wealth is all about keeping an eye on different ways of making more money. We don't have to limit ourselves on what we are earning for now. We can as well make plans for ourselves and investing in other financial aspects just like cryptocurrency so we can earn more. The idea that we might not earn enough if we don't invest in cryptocurrency is wrong. Not everyone is interested in that, which does not make people that are not in Crypto prone to getting weaker and loose when it comes to financial prosperity.

Of course, both are held by other parties, but with different conditions. There is a difference between the provisions for storing money in a bank and storing crypto on an exchange, in fact banks can be said to be safer even though they are more complicated than exchanges. I can withdraw 81.3 btc or $8m from centralized exchanges every day to my wallet, while I really struggle to withdraw $63k from the bank in cash. Those are just two stark comparisons, so I thought there must be lots of other differences.

For me, banks are safer than exchanges because banks are fully regulated by the government with strict controls. I know both have risks, but for me they both have their own advantages and disadvantages which we can adapt to our respective needs.

The reality is that the money you supposedly have at your local bank are just numbers and nothing else, since your bank could always refuse to give that money that belongs to you using any legal excuse, something I have seen happening before to other people, so I only keep the minimal amount there to pay for my bills and everything else is withdrawn as soon as it arrives and I keep it in the form of cash or I invest it in this market.

We can compare that holding money in the bank is the same as holding our assets in exchanges. They have the full custody of what we have and when we're about to withdraw huge amount of our own money, they will start to question and give us a hard time of getting it.

And your point of saying that what we hold is ours, that's true. Not only private keys that all matters but also land titles, certificate of ownership of luxury jewelries and watches and even art works.

Financial institutions and the monetary system in any country are the real tool of power because they enable control over the entire population by monitoring all financial activities of all citizens. Banks ultimately provide the service to save your money in return for returns, but the ruling authority is the one who imposes the use of that service. In almost all countries of the world, there are laws that prohibit carrying cash of a certain value. In my country, it is legally forbidden for any citizen to have more than $5,000 in his hands, while all cash gains must be deposited in a bank account. Banks benefit from this system, which has contributed to the development of many other sectors within the financial economy.

We agree that saving money in a bank will not get any profit, will only receive a decrease in the value of the currency that we have or you call it depreciated by inflation that continues to grow every year, that is true, but what needs to be questioned in advance to the owner of the money We will be able to say it is, whether the money wants to increase or what to be able to answer the question, and when they want to say their money is increasing, investment or opening a business is a path that is highly recommended to get more money than be stored, both have risks with different levels , many types of investments and businesses that can be an option to add value to money or the amount of money in the future, the size of the risk and the size of your knowledge is converted to what fields you will enter.

There are different ways to invest money that is in your hand like your can invest in real estate, stock or any other business. One thing we have to keep in mind is that every business need prior knowledge for success. I won't get orofit if I invest money in real estate without proper knowledge and working rather I will end up losing money. While money sitting in banks depreciates in value, investing in business is also not risk free. I am not saying that not to invest in business but do proper working before going for any business.   

What business can now bring 24 percent annual profit? Currently, in my country, having a deposit in a commercial bank is very profitable.

You simply put money on deposit, do nothing, and in a year you get back not only the deposit amount itself, but also a quarter of this amount of money as profit. This is a very profitable investment.

Another thing is that such a state of affairs signals a catastrophic situation in the economy. And it is quite possible that in the future, the funds from the deposit will be frozen or forcibly converted into bonds or shares of a commercial bank.

This possibility also potentially exists. And these risks must be taken into account.

Money that can be used as capital for business or investment would certainly be better not to be saved in any bank, because in seeking profits that can increase the amount of money to be even more is by turning the money into things that can bring in more than just saving it in the bank. I also agree with the opinion you said because at this time not many people have capital for business and investment matters so for those who have capital it would certainly be better to use it for those things.

On the moment that you have decided on storing up your money then it will really be that recommended that you do really know on where you would really be that storing up your funds. When it comes to annual interest then this is something that not really interesting at all not unless if you do have that big amount then having that annual interest will be significant or even trying out to have that time deposit then it will really be that interesting but of course we do really know on which one will really be that worth on making use of these money on which it will be better that you do really tend to make to make out some via investment or having a business on which it will really be that best that you do really know at least on what are the risks involved. There are some individuals who cant really just that be able to bare up with the risks and there are ones who are really that risks takers and thats why they do consider out on making such decision. Holding fiat on banks will be only that better if you do only allocate which is really that only be allocated for medicines and emergency funds and the rest should be invested into something, but everything will really be that depending on you because its your money then you do have the full rights on what are the things that you should gonna do with it. If you do have to have at least that progress into your life then its not bad to have such approach when it comes into this manner.

Reading the previous answers, holding money in a bank is more or less risky or wise depending on the country where you live, but I agree with the sentence "you hold nothing".

Of course, holding your money at home and not in a bank is risky too, just the same as having the custody of your coins because you hold your private keys there: if you get robbed, there is a fire, or a flood, you're f***ed. But if you hold the money in the bank, you don't really hold it anymore, but a right to withdraw, which may decay in certain circumstances (identity theft, liquidity problems in the financial institution, punctual politics and laws...).

I think that banks have existed for centuries because their business model made sense. And it still does. But for how long, or how much, is now at stake.

Yes, that is the right choice to always pay attention to rather than saving money in the bank, it would be better to think in that direction, by using the money for things that can increase the value of the money in the future, by investing it becomes a good opportunity, because if the money is saved in the bank, every month there will definitely be a monthly fee deduction.

I have a great deal of mistrust towards commercial banks. After all, they are very aggressive in promoting credit services and voluntary pension insurance services.

In addition, in my country it is impossible to prohibit obtaining a loan from commercial banks (by submitting a corresponding application in writing). And this gives a potential opportunity for fraudsters to obtain loans on behalf of honest citizens (without their consent). I hate loans.

However, commercial banks are also sometimes useful. Currently, interest rates on deposits in my country are very high (about 24 percent per annum). This makes deposits in commercial banks a good investment.

In addition, every resident of the country must have an official legal income (and not just income denominated in cryptocurrencies). Interest on deposits is just such income - after all, taxes are officially paid on them.

You can withdraw money from a deposit and buy yourself an apartment. This will not work with cryptocurrency, since it is not officially legalized.

That's the question isn't it? How confident about the commercial bank are you? And how confident are you with Binance? If you are confident enough with binance, then it is not even a question, you can keep your bitcoins there, even though many people say you shouldn't keep your money at banks. Whereas, when you think about it, too many people keep their money in those commercial banks, in tune of trillions of dollars. Banks are literally the worst thing that ever happened to the world, without banks, we could definitely figure out a way to live.

In fact, we could just have "vaults" type of companies, companies where you just put your money in, and pay them to keep it safe, that's it, nothing more, so you do not have to carry billions with you if you are rich, you still have your debit card, just not like a bank, no credit lines, no loans, and nothing more, just a place where people who have money put it in, that's it, nothing more. I hate banks, and will keep on hating them, because they never gave me a reason not to hate them.

A deposit in a commercial bank is a commitment from the commercial bank to you...

How confident are you in this commercial bank? How confident are you that this commercial bank will not go bankrupt? Do you have a backup plan if such bankruptcy occurs? Are you satisfied with the amount of interest accrued on the deposit? Does this interest compensate for the inflation rate?

Answering all these questions will help you decide whether you need to keep your money in a commercial bank or not.

I agree that real money is money that you can control yourself without relying on a third party. However, finance is more than bitcoin, gold bars and cash. using all the opportunities that the financial system provides you can achieve a high level of wealth. at the same time, you need to adequately assess the existing risks and effectively use the opportunities provided.

Bank now feels more like viewing digital number than owning anything. Banks possess a promise, not money, and that promise depends on governments who generate currency whenever they want. Bonds? Government liabilities are passed off as assets. Strange that something so weak is a financial pillar.

The bigger issue is systemic trust. Most people trust the financial system , but new vulnerabilities are becoming more apparent. Central banks adjust interest rates without a safety net while inflation stealthily erodes wealth. Fiat currencies follow policy changes and political decisions. Therefore, in these days, holding for Bitcoin, gold, or crypto common sense. These assets are unmanipulated by the government, protecting against economic volatility.

Bitcoin is unique since it's decentralized. After you save it in a secret wallet, no one else can say anything. Gold is a good choice, but it's not moveable or liquidateable internationally. At this point, fiat feels like a game where the rules change mid-play - and the only way to stay ahead is to diversify into assets you can directly control.

I don't think it's wise to keep money in the bank, especially if it can be invested in something real instead of keeping it in the bank.  Instead of keeping money in the bank, it would be better if it could be invested in land, real estate, or Bitcoin. But money can be kept in the bank, it should be in the form of fixed deposit so that a certain profit is available at the end of the year.

Stop talking nonsense. So according to you what you call money must be tangible and anything short of that is not money right? Did you also know that cryptocurrency is just some bunch of codes that's displayed on your wallet as numbers?

You may not trust the bank, and it's fine to diversify your wealth in gold, landed properties, real estates, crypto but you still cannot do without fiat. Except, of course you want to go back to the primitive age and live in a cave.

Bonds are backed by the entities that are issuing them. They used to be delivered physically in the older days but are mostly digital these days.
So I don't think it's a bad option as it can be considered for diversification of investments.
At least a smaller chunk of our investment should be in bonds I believe but crypto is definitely the top most priority for investment ofcourse.

Correct @OP, that's why if every citizen withdraw at least 50% of their money at the same time, the banks will collapse because they don't have enough money to give. Hence they make pending withdrawal for citizen who withdraw a lot money.

However stablecoins aren't safe though, even you hold it in your own non custodial wallet, it can be frozen or reverted because most of stablecoins are centralized.