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Congratulations. You just invented fractional reserve banking.
by venomsnake 11y ago
Congratulations. You just invented fractional reserve banking.
- gboudrias 11y agoNot sure I follow? This is standard in the banking world, yes, so why wouldn't it be standard in the much less regulated bitcoin world?
- venomsnake 11y agoBecause then you get all the "features" of the current banking system that bitcoin wanted to avoid. Bitcoin is by design deflationary currency. Fractional reserve banking is by design inflationary. No matter where you sit on how much inflation and what monetary policy is best - it is obvious that it is against the intentions of the original adopters and creators of the BTC network.
- fucking_tragedy 11y agoSounds like you're mixing ideology with technology.
- feebale 11y agoNo, he didn't. He invented insolvency. With fractional reserve banking, the institution has assets greater than liabilities. With insolvency, the institution has a plan to someday have assets greater than liabilities.