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That's possible. They can lend the same bitcoins to many different people, with the expectation that not all of them will withdraw the borrowed coins at the sam
by occamrazor 8y ago
That's possible. They can lend the same bitcoins to many different people, with the expectation that not all of them will withdraw the borrowed coins at the same time.
- erikpukinskis 8y agoHow do you lend the same cash to two people? Don’t people take loans to spend the money?
- occamrazor 8y agoIf Coinbase customer A borrows bitcoins and transfers them to Coinbase customer B, those bitcoins never leave Coinbase, assuming that customer B does not transfers them immediately out of Coinbase. Same happens if Coinbase customer A tranfers 1 BTC to Bitstamp customer B and Bitstamp customer C transfers 1 BTC to Coinbase customer D. Fractional reserve banking can happen (and did happen) even without a central bank, with gold backed currencies.
- deleted 8y ago[deleted]
- erikpukinskis 8y agoSo, if you need a loan for rent for your startup, and your landlord is also a Coinbase customer, then this is possible. But I don’t understand your argument... you’re talking about a future where Coinbase has the installed base of, like, Venmo?