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If Coinbase customer A borrows bitcoins and transfers them to Coinbase customer B, those bitcoins never leave Coinbase, assuming that customer B does not transf
by occamrazor 8y ago
If 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?