Is the bank the safest place for saving money?

akdx (66)in #money • 5 years ago (edited)

In prehistoric time money was in the form of cattle and food grains as the barter system was the only means of exchange available at that time. People have to keep cattle and grains in their houses for keeping them safe from the burglars and natural calamities. Later coins made of gold, silver etc. replaced barter system, and in modern time we have currency notes and digital currencies which have become the widely accepted means of exchange.

Before the banking system came into existence, people used to hide their money in the secret places like burying it somewhere or store in secret closets, chests, strongboxes, safes, vaults or between the secret openings on the walls or floors, etc. Powerful people, especially kings and ministers, used to keep guards to protect their treasures. Money kept in those methods was not safe from the burglars, bandits and enemies. Occasionally people used to forget about the places where they had buried their treasure or died before they could tell anything to their heirs about their secret possessions. But, banking system made it easy for everyone to keep their money in a safe place. People even receive interests on their savings with banks. Hence, banking system is the safest place for saving money so far.

However, nothing is permanent in this world. Banks are vulnerable to fraud, robbery, insolvency, etc. In the digital era hackers can steal money from banks without going to the banks. They can hack any bank or bank account located in any part of the world by simply running hacking tools, which are special programs, on their computer or typing passwords related to the compromised accounts.

To overcome such problems and making banking system safe and free of centralization, some persons invented cryptocurrencies. However, cryptocurrencies are also not very safe from hackers. Hackers can steal anybody’s crypto assets by hacking their online wallets or knowing the password of their wallets.

So, there is no safe place for the storing of money which is hundred percent foolproof. Despite of all such possibilities and vulnerabilities banks are still one of the safest place to keep money. However, virtual currencies can be the safest currencies in near future.