Why encrypt user passwords? [duplicate]

Answer 1

Reasons:

1. If someone (from inside or outside) will steal those passwords and publicly release them, you're doomed, you can instantly close your business.
2. Some people use the same password for many services. If some "attacker" can access e-mail address and password, the easiest way is to try if that password also works for that e-mail account.

You don't want this happen.

If you can access someone elses e-mail account, you can request sending forgotten password from victim's various services etc.