[SERIOUS] It clicked: Banks don't store your money. They take it and are in debt to you. But most people in the world don't understand this

I was watching some videos related to the recent banking crisis, where I came across this very interesting quite from someone called Minsky:

Anyone can create money; the problem lies in getting it accepted.

• Minsky

The video explained one crucial aspect which I sort of knew already, but didn't quite fully grasp about banks.

Banks are not even trying to store your money. That's not their goal. They're literary taking it and giving you a promise of return+interest - so essentially they are in debt to you. The balance you see in the online banking is not how much money YOU have, but how much money THEY are in DEBT to you. Not more, not less.

What does this mean? This means, that banks defaulting and you not getting all of your money back is expected. After all, it was essentially you giving out a loan to the bank. (Edit: By expected, I don't mean, that you actually expect to loose money like when you actually gamble. I just wanted to highlight, that the safety is not guaranteed as they don't actually keep the money. Ofc there is FDIC insurance etc.)

The quote from above means the following. Because banks are (in general) trusted with taking on your debt and returning it on demand, people feel comfortable with putting their money there. The goal of banks is to be trusted with debt, so that's why they can create money. Because we trust them when we take a loan from the bank, it actually works. The above quote essentially says, that money can be created here, because people trust that the banks won't default.

This also explains why there are only overcollatoralized loans in crypto. After all, crypto is based on trustlessness, so new trust based debt cannot be created like described in the quote.

With this understanding, I am actually very confused as to why most people don't understand this. Am I wrong somewhere? What do you think?

After all, almost everyone outside of Crypto thinks that banks hold your money. But actually You're giving out a loan. Most people wouldn't do that if they understood what they're doing. They'd rather put the money at home or put it into actual investments. But this wide misunderstanding between what banks actually do and what people think what they do worries me.

What do you think? Would the world be better off, if everyone understood banks as places to give out loans than places to store money? I have no problem with people doing that, if they actually understand what it means.

Note: Yes, giving the bank a loan by putting your money is not 1:1 like a real p2p loan. You have insurance upto a certain point. But that insurance is essentially paid by everyone via bank fees. So bank customers are paying for it as well.

Edit: I found a great guardian article describing what I mean and even linking to an official document by the bank of England further highlighting this point of misconception. The truth is out: money is just an IOU, and the banks are rolling in it and the paper

Edit2: To make the point regarding taking loans from the bank. There is the misconceptions, that the loan money comes from other peoples deposit. It doesn't. It's not other people's deposits. Look at the document straight from the bank of England.

In the modern economy, most money takes the form of bank deposits. But how those bank deposits are created is often misunderstood: the principal way is through commercial banks making loans. Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower's bank account, thereby creating new money.

Emphasis from original document.

With the federal reserve requirement at 0%, this effect has little limits.