Topic: Not your keys not your funds Banks (Read 537 times)

When you use bank to hodl your money, you have nothing to worry about the money because if anything happen to the bank you save your money, they will be hodl responsible for your money and they will pay you back your money.

But if you prefer hodling your BTC or crypto in your wallet, you will be more happy than someone that saved his money in the bank because if the price of BTC is pumping in the market, it will make your BTC accumulating.

Since many people know that bank are the full control of someone money in the bank,  they don't save big money in the bank because they will not gain anything which is the reason they will use big money to buy BTC and save small money in the bank in case any emergency.

i agree that when you have bitcoin it's like you really have full control of your assets, but that doesn't mean that one should refuse the banking system to store their assets. banking provides various financial services which are helpful to customers, many crypto users are even helped by banking where they can make deposits and buy bitcoin.

especially if you are worried that banks could steal your money, then you can see which institution they insure their money with. if it is a credible banking company, all customer funds should be protected, so that when the bank goes bankrupt, customers can get their money back.

Like what? But, cryptos are still like a bank. They are only much better though. Most banks are old and are guarded very well but it's funny that inside jobs can still occur. There is also the number one thief of our money and that is called as the 'Inflation'.

I think insurances and loans can still be obtained through them even if you don't store money on them although maybe it's an advantage if you do but if you don't want to, there are still other organizations or companies that offers the same thing. It's also possible here in crypto. If we really want to try and use a bank, then yeah that we only need to store small amounts on them and we need to prioritize crypto more (BTC to be specific).

I know a man who invested all his money on two different houses for renting and guess what happened? The land originally belonged to the government, but it was sold to him illegally and the seller disappeared, the government took everything from him, I bring this up just to prove to you that having your money in one thing is the most risky play.

Diversity doesn't end with crypto only, have money in assets and also in banks and even other businesses, when one crumbles the others will pull you up again, risks are inevitable in the human world, anything can happen to us or even our investments, and assets at any time, but the more we diversify the lower the risk.

Have business running, invest in assets, keep some money saved in the bank, just in case of emergency, avoid keeping gold and money at home, because of invaders and pests, we all hate the banks but at this point in time we can't do anything without the banks either.

Because I have to worry a lot about keeping money in the bank, I have invested in Bitcoin instead of keeping money in the bank. I think investing in Bitcoin is much safer than keeping money in the bank.  But those who are stupid will keep money in the bank now the situation in the bank is very bad because of which almost people are afraid to keep money in the bank.

I have experienced first hand how Banks have gone bankrupt and where only a small portion of the funds deposited in that Bank, have been paid back to the clients.

We have also seen how reckless Banks have operated in the last economic crisis and how governments had to step up to bail them out with tax payers money to rescue them.

Banks cannot be trusted with your wealth... be your own Bank and buy bitcoins. (You should always hold those coins in a wallet, where you have sole control over the Private key)

Banks are more convenient for all individuals trying to keep their wealth under control and many prefer to use cash. But I prefer crypto to bank to keep my wealth. Investing bitcoins in crypto will increase in value over time and double your profits. Banks have very low profit margins and take a lot of time to withdraw money. Also the continuous inflationary pressure of banks and lack of confidence among depositors are also responsible for this.

It's not like that , yes you're right to some extent that banking system is not something that can be idealized to keep your gold and money. They basically invest your money and take huge amount of profits from which you're given a small amount in form if interest.

That's why when you go to a bank and ask them to withdraw all your amount they don't allow you to do so because they've invested almost all of their amount in bank except some.

Governments have created ways to ensure that company employees receive their salaries in banks, so all people are required to have bank accounts. Central banks regulate commercial banks, they constantly monitor commercial banks and carry out inspections periodically, so if a bank goes bankrupt, the insurance covers the money of the injured people, and the bank owners are punished. This way, people's money is safe in banks, at least I'm talking about banks in my country. I don't know how things work in first world countries or other countries

but I know that in my country, banks are trustworthy, if a person keeps $10,000 in my country's bank, then that money is safe, if that person loses their life, the money goes to their wife, children or parents. If the bank goes bankrupt, something very difficult to happen, but if it goes bankrupt, the bank's insurance company and the central bank in my country will give $10,000 to that person and all the people who had saved money in the bank. I honestly don't see any reason to criticize banks, because it's better to keep money in the bank than to keep it at home and increase the risk of a person's life.

Banks are just using our money to continue with their business while crypto wallet are just there sitting and waiting for us to do some transactions.
If you don't have any control with your money, then it will be more risky especially in crypto world. This has been the discussion many times already with regards to security of the crypto wallet and with those who don't own their keys. If you want your crypto to be more safe then better to have your own hard wallet where you can control your crypto any time you want.

At first, you talked as if you didn’t trust banks anymore, and at the end, you said banks are safe. I don’t know why some people think cryptocurrency is 100% safe to save money, but to me, it is not because if it were, the world would have changed and joined the cryptocurrency today, but because there is a high risk that only a few people can be able to accept it. That is why we have millions of people who are yet to accept it.

 for banks if they are not safe people would have leave them for a long period of time and Banks have been in existence for a very long period of time and people have been saving billions of dollars in there and still safe. Do you know that many people who think they are 100% sure of crypto currency only use it to make more money and not to say money? If you do not, I think you should keep this in mind now that we all use cryptocurrency to make more money, not what you think. For me, I won’t advise anyone to use cryptocurrencies to save money. 

This is one of the reasons bitcoin was created and why a lot of us use it. The bitcoin in your non-custodial wallet is in your control and no entity can seize it or prevent you from doing what you want with it, the bad thing is that some people still use bitcoin like fiat, by keeping their assets in a centralized exchange.

Custodial services like the bank and centralized exchanges basically take your money and show you numbers in your account, if anything happens to their platform, you'd be unable to withdraw your money, which proves that it was numbers all along.

Thruthfully speaking we know that banks do offer an array of advantages that you are never to get with crypto.

Yes these banks are not as secure as they say but if you need a few things, it wouldn’t be that bad to have some of your money in the bank. We are talking about insurances and loans here. In case of emergencies banks can come in handy.

Though I think that it would be best if you didn’t just put all of your money into the bank and if you really want to feel the most responsible with your own money then put some in crypto.

Well we can always consider diversifying your portfolio and distributing your money into different assets. Like they say do not put all your eggs in one basket, do it the same with your money. You can’t keep your money with you at all times especially if it’s huge so it would be safer if you held it somewhere else.


Using banks is not also guaranteed safe as there are a lot of banking issues that may happen specifically to the bank you chose and your money can be in danger still.

These days keeping money in the bank has become really dangerous. Because the banks are going bankrupt. Also, the bank does not tell the customer clearly what is going to happen.  It is better to have money in cash. And if you want to invest, investing in land and cryptocurrency will be the right decision.  That is the best decision to invest in BTC.  I am not saying that the bank is bad. But these days the bank issue is harassing people. Bank fraud is observed almost all over the country.

Bro, you're not being honest, you're just stating facts that's already known by a lot of people and you're not unique in your insights, people have known about that part ever since, I mean we've all been introduced into crypto with the fact that if it's not your keys then it's not your coins, people with some common sense could've easily compared and made the assumption. Tell us something new, most of us hate the banking institution already, what's there to hate other than the already stated facts by other people? Also, even if you do want to look cool hating on banks, you still can't go out there and be too much of a crypto supremacist because most people when they get too large of amount of bitcoin or any cryptocurrency, they still need banks to benefit from their profits.

Here in my country ± $8,700 is the maximum refundable in case something will happen to them so more than that would be considered loss on our part so yeah this is the reason why I don't like banks personally aside from the KYC and stuff. Banks also cannot give all the money you have if you cash it all out especially huge sums of money. I have read someone posted on social media before or maybe on forum I just forgot where I got that post. I know they do have a lot of questions during deposits and withdrawal of huge amount of money and that sucks.

That's the thing I always think about when I imagine making a lot of money in the crypto world, like lets assume for a moment that you got lucky and someone sent you 500 million dollars, why would they of course but this is just assumption to show something else.

If you had 500 million dollars in your wallet today, how would you turn that into money in your bank account? That's not easy at all, you would need to test out small by small, plus most exchanges do not let you do that all at once, so you need to do it slowly, and you need to make sure that you do not send all of that to an exchange or something that will keep it, you send like a million, and then you send to your bank, and then you take care of the taxes, and then you do it again 500 times until it's all done, and you will face a million problems while trying. So all in all, having 500 million in crypto, trying to turn that into fiat in your bank account is quite hard when you think about it.

Where it is comfortable and safe to store it. If people are comfortable saving money in the bank, choose the bank. But I'm sure there are former bank employees who don't keep their money in the bank.
As far as I know, money saved in banks is used as capital to provide credit to those in need. Yes. The money in the bank does not belong to us, but to them because they control where our money will be used.
Unlike Bitcoin, we own Bitcoin and we control it.

In my opinion, don't save too much money in the bank. If you are a permanent worker who has an income that is paid directly to a bank account, it is better to withdraw 50% and leave 50% there every month for travel purposes just to anticipate.
There is no greater benefit to saving there than the lure of a small percentage of interest.

Yep, one of the really important things that we need to do to reduce the risk of losing all the funds we have, is to diversify our assets, There's nothing wrong in trusting some banks because somehow they can help us to store our money and the convenience that we experience by using their bank apps and loan offer once we need money when there's an emergency, especially now that we're living in modern technology days, the side down of it is prone to hacking incidents so much better not to put 100% of our funds in the bank.

Reality is, the safety and security of your wealth is only within your hands. If you are too trusting to your banks or even exchanges that monitor your wallet, you will lose them all in an instant. That is why when it comes to money, there’s no one you can trust 100%. So be cautious where to save or store your wealth. If you are not responsible enough to manage your wealth, you will definitely mess them in no time.

So I’d agree that with all these flaws, diversification could be the best option. At least if you lose one asset, the other one might probably be in profits. Risks are inevitable, but one should always know how to lessen those risks.

You have control over the cash and crypto... as far as the money we keep in the bank, we have control as well, but not total. The bank can limit/deny our access to that money if they think there is a reason for doing so. Of course, it doesn't happen that often and it doesn't happen everywhere, but there have been cases in the world (especially during the coronavirus).

Well, it's simple actually... banks are the "middleman", a third-party service, and with crypto, the need for that "third-party service" is eliminated. We can store/keep coins, we can move them as we like, and wherever we like, we can adjust fees, so basically we can do alone most things that banks do.

Although,banks holds several security measures that'll manage risks as theft and robbery,saving money in the bank Is also not a good decision,as the bank is not a reliable place to keep and protect your money.

However,individually,it would also be safer to have other opinions and options for your money as well.Whether its to invest in stocks,real estates,or consider investing in cryptocurrency.
Investing into bitcoin will help it develop and build an even more secure financial future for yourself.

The same can be said of crypto exchanges that have built a “solid reputation”. Remember FTX? They were reputable until they were not. You can never be too sure of what you are not in control of. You do not possess sole authority over the money in your bank account, the government can freeze your assets at any time.

Not true. You can save money in foreign currencies by using a domiciliary account.

So you believe them when they say you are going to have self-custody of your funds in the future in a wallet that you own? Don't you think the wallet which they say will be a self-custody wallet will still be under their control and the funds in it wouldn't be completely yours to use without them knowing about it or having any control over it? If that happens, it won't be a centralized system anymore even if it's about a specific percentage of your wealth.

Traditional and central financial institutions will never let you become the owner of your funds and keep them to yourself while you are using their product which you say will be a self-custodial wallet. They wouldn't give you complete access to your funds that way, there will be some way for them to have control or keep an eye on your finances or financial holdings and where you are sending and receiving the funds.

What I know is that theirs no way you can invest in bitcoin that you will not make use of bank, the thing is that you have to invest and after investing in cryptocurrency you have to know that investment have to do with advantages and disadvantages so if you know that investing in Bitcoin will be profitable for you, you have to follow the normal procedure

Even keeping your own money in your own vault in your home won't be safe when someone gets to know that you've got a lot of it. So the risk of losing money in the banks, exchanges and even keeping it on your own vault is there. What you must do is to scatter them so that if one of the storage you've been keeping it had got problem then the others won't be affected. The other suggestions might just want you to deposit your money in different banks and have a lot of accounts and as for having Bitcoin, you become your own custodian of your own fund by having your private keys.

It had become a habit and you want to see the balance of how much you have saved already. There's a slight percentage gain for putting it on savings but it's not what you are expecting to have the biggest return upon doing so.

Even the banks themselves don't idle all the money they have because they know that it is a bad idea. We can learn from them and go for the recommendations that you have there. Some banks are established a long time ago but yeah, this alone is not enough as a definition of being safe because there is still what we called as inflation and its rates are growing from time to time. For those who don't know, it eats up the value of our money over time.

I believe that most people who deposit money in the banks are only doing it for the purpose of saving and it is different from investing. They don't expect too much for it and they also don't hold it for too long there. There is also a risk in investing.

Have you also thought of the potential harm that may occur during this process of trying to control your assets by yourself? Okay, let us also consider the possibility of keeping money in digital currency for instance holding bitcoin or any other altcoin as an alternative to save and secure one's assets or money. Do you also remembered that the painful thing is to completely loss access to your asset because in cryptocurrency all you have is to safe guard your private key, seed phrase or alphanumeric keys or whatever. But with bank you could start the process to have access to your bank account.

Banks don't own you any responsibility on what they use your money for and they are surely in business with your money.


Surely it is no longer yours if you have decided to take your money to your bank, it becomes there money until you demand to withdraw it .


They don't have to expose their access and liability to you as an individual but they publish their annual report and share dividend with their share holders. You can find that in the public but they own you no responsibility of explaining what they used your money for. They are in business with your money definitely and if you are not cool with that then you won't keep saving in the bank.



Yes right . Cryptocurrency gives you that custody of your money in crypto to the exclusion of others.

I do hope that you heard about BYOB or Be Your Own Bank. So yes, that is the very definition of Bitcoin to us, as we have control. However, it has it's drawback, since we are in total then we need to protect it at all cost and this is where some of us fail. There are investors who lost their crypto to hackers because they don't know how to practice safety.

Banks on the other hand, could be safe, however, our money is not going to grow with them. So you need to balance everything, maybe keep some cash in your hand in case of emergency and have some on banks and then majority in crypto as a form of investment but you need to learn how to keep it safe and private. Everything in this world has it's pros/cons and there is not a perfect system. And so the best thing to do is to make the best out of it, bank and crypto.

Let me give you my experience of trustwallet, somehow it sent 25$ worth of a coin to the sending address of my former trustwallet. That happens to a bank and the bank would return that. Not so trustwallet.

The argument that a bank goes bankrupt is more remote than an exchange defaulting. Inflation: stablecoin Tether, do you remember? 

One thing that is certain is that banks are not like safes that are safe for you to use to store money in the long term. Banks can go bankrupt. And this has even happened in the past few years where many large banks have gone bankrupt. And their customers are confused about how to get their money back. For me, banks are just a place to store money temporarily before using or buying real assets such as property and physical gold. And our real asset is the real estate itself. Meanwhile, money itself is only a temporary asset whose value always changes due to inflation. So the safest place to secure assets is to buy land, or property or anything that you can sell without worrying about being affected by inflation.

According to the whitepaper Bitcoin was planned as a P2P network, not as a financial vehicle. A bank fulfills many functions in society, lending and insuring your funds, at least in theory.
 
Due to the cultural decline and a much cruder view such as displayed in online forums people reach false conclusions. 

These were the exact concerns of satoshi nakamato that made him to create Bitcoin. You do not need to lament as if the government of your country mandated every of their citizen to have all their money in the bank. Bitcoin introduced a kind of liberty to us. Satoshi successfully created a way of being your own bank so you can choose to manage part of your money in Bitcoin and leave the rest in your local bank. You do not actually know what goes in the back end of the banks and other financial institutions in connection with their Godfather (the government). They work in tandem against the common man who sees bank as the safest place to save. The people have trusted the government so much that we give them all. You can decide to join the league of trustlessness. Run a node today and become a full bitcoiner.

Ordinarily if you have the mindset of investing in crypto, then you don't have to deposit too much amount in your Bank account maybe just few amount you need for one or two things, however the banks are there for a purpose, don't forget that they give loan facility to there customers, they are accountable to your money hence you bank with them and that has been a long time practice Which is still useful till today, they have a lot of workers who still pay tax to the government and at the end of the day, that generates income to the government, and they are also responsible for our fiat distribution. so OP, the gloomy picture your painting on financial institutions for me is not necessary because they are there to serve a purpose and thus they've been doing from a long time coming.

I believe this is not going to happen because you the marginal reserve ratio are just 10% so all they gotta do is hold 10% of the entire funds entrusted to them in form of cash then they are free to use the rest in investment. What you are suggesting is not possible in fiat, its only applicable in crypto and there is no reason for banks to let you keep your own money in private self custody provided by them. Its just weird

Banks provide their service by keeping your money safe from robbery but in exchange, they are also using your money as part of their investment plan. It has been like that for centuries and it will be keep on being like that

I believe this was what prompted the idea behind the discovery and initiative of the Blockchain network and cryptocurrencies in general and as a note of solidarity, money in the bank is actually numbers that may be frozen for some reasons or debited for charges  or used to reinvest in other ventures by the bank, without the account owners knowledge.

Am sure it is clearly evident already and the only consolation I have is that these days even if the banks fold up or merge, one can still recover their funds, unlike how it was before.

It's worse than you think. Banks invest your money and lend it. They buy government bonds with it. If bonds yield is negative or very low, like it is now in the US, banks lose your money.
When the company that borrowed money from the bank loses it, it's your money that is lost. A company can go bankrupt and default on a loan, which means your money is gone. Why doesn't that mean the bank is bankrupt? Because governments want the bank to keep investing in their worthless bonds, so they can't allow the banks to go bankrupt, so they print money and tax all citizens to bailout banks.
It's all one big scam if you want to know my opinion.

Banks somehow offer you other services when you started an account with them and entrusted them with your funds. It's better compared to keeping cash to yourself. You can buy crypto and keep it yourself provided you know what you're doing, and you're sure that you won't be targeted for your funds. That's your keys and that certainly are your coins. Whatever happens to your funds are your sole discretion.

You can utilize banks for safekeeping and gaining access to other financial services that are otherwise beyond your reach if you decide to keep your funds yourself. Then again, if you really want to be sure that your funds will not be misused and you'd still gain something from it whilst being idle, buying crypto and learning how to safekeep it is one route.

I don't think difference when storing your money in the Bank or cryptocurrency because not your keys is not your coins and not your key is not your fund bank, just difference place only between saving money in the bank or cryptocurrency many way how to scammer try to get scam with your assets. For more security, better prefer with your mobile banking with one mobile phone only without directly with social media account how easily scammer sent you scam site link and get easily with your fund loss. But some time saving money in the Bank the security depend on the Bank worker how easily get access with the costumer data and most of losing money in the Bank in my country did by Bank worker.

For safety, withdraw your all money in the Bank or cryptocurrency and put it in security place at your home, currently its difficult for making more secure money if huge amount.

Banks do not physically store all deposited funds but instead utilize them for lending and investment purposes, maintaining only a fraction of the deposited amount as reserves. Keeping you money in a bank is a risky idea even though that is how it has been for a long time. There are other options to pick from rather than keeping all of your money in the bank. Rather than keeping all of your money in the bank, invest a portion of it in bitcoin, invest part of it in starting up a business, put some part in stocks or real estate. A $10000 sitting in your bank for 10 years will not give you the same returns as it would if you put invest it in one of the alternated schemes listed above that you understand.

Totally agree. This is the only reason why I only save an amount on bank that is only covered by the FDIC insurance amount since saving above the FDIC insurance is already considered risky while your money doesn’t get much interest on bank.

It’s better to store in crypto like stablecoins and Bitcoin then Stake it on DeFi to gain passive income greater than the interest offered by banks.

If you feel banks are not safe for your assets, you can simply stop using them. And if you believe in cryptocurrencies, invest all your money in them and enjoy what you consider safe.

To me, nothing is absolutely safe and everything has its own advantages and disadvantages. Because in your opinion, if banks are not safe, how can they exist for hundreds of years and receive the trust of billions of people around the world? If cryptocurrencies are really as perfect as you say, why aren't more people using them to replace banks yet?
Your doubts about banks are not wrong, but there is no need to complicate matters while diversifying assets is the best way we should do. Because nothing here is perfect or absolutely safe.

There's no where that you'll keep your money that it'll be 100% safe, whether it's physical cash, in investment, in the bank or through your wallet, there are robbers, scammers, natural or man-made disasters and bankruptcy can happen, so you'll have to take chances in choosing any option. But I think that one of the safest places to keep your money is in the bank, so far it's a trusted Bank that has built a solid reputation, they won't tell you stories anytime that you want to make withdrawals, the only disadvantage of leaving your money in the bank is if there's devaluation of your local currency.

What I'll advise anybody is not to put all their capital in one place, keep a few as cash at hand, save some in the bank and invest most of it in a reputable asset like Bitcoin.

Yes a negative view destroys all hope.
You should not have all your money in the bank, nor in your house. Just spread it, invest it.

You only need to check their official sites and download their financial report, so you can know how much their total assets, liabilities and capitals they have. I understand manipulation in financial report is inevitable, but at least you will know if every banks have liabilities, even most of countries in the world also in debt.

Banks isn't a place to protect your money, just hold small amount of money i.e. emergency funds in banks, so you can withdraw whenever you need.

There seems to be nothing safe in reality. Before, keeping huge sums of money in your house isn't advisable. That's too risky. Your cold cash is difficult to keep. You're exposing it to robbers. You could spend it on useless stuff. Your house could catch fire. There might be flood. Your money could even be consumed by rodents and other pests.

And yet, keeping your money in the banks could mean it could be frozen from you. It could be locked. You might not be allowed to withdraw it indefinitely. Your bank could crash. This goes on.

Keeping your money in gold, real estate, stocks, business, Bitcoin, and so on doesn't mean they're safe either. Perhaps diversifying your money could somehow lessen the risk.

To be honest Banks have liabilities to other bigger banks and instutions If you own funds in bank it's not yours
In the future the new money system should be that at least some amount what you have in bank account for example up to 30k $ you can transfer into your private self custody wallet, i heard that's the plan and yes its needed.
Nowdays i feel like my bank account balance is just numbers and i have no control over it the true wealth i have is cash in my pocket or wallet and the cryptocurrency.
Also Banks hold extra liabilities to other financial instutions and bigger banks and you might have mortgage or car loan with your bank you might think they own it but not If your bank have problems than you might lose your home even you pay mortgage for your home.
The thing is that banks and other debit credit instutions don't expose to customers openly info about how much leverage or risk they have and liabilities what they need to pay to other financial instutions If not they must liquitate their assets.
In times like this you only want to deal with bigger banks and credit /debit instutions.
But i feel that crypto and cash are real money the bank balance on my bank account i feel little sceptical yes banks are safe but still i need that feeling that at least some of my funds are under my own control.