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This. I have never heard a remotely sensible discussion from crypto folks around following points: 1. If fractional reserve banking is bad, what or who is goin
by beefield 7y ago
This. I have never heard a remotely sensible discussion from crypto folks around following points:
1. If fractional reserve banking is bad, what or who is going to stop the appearance of that in bitcoin world? You need to understand that literally only thing you need for that is a bunch of people trusting so much one organization that they are willing to use the IOU from that as payment method. (Cough, tether, cough)
2. If fractional reserve banking is good or even okay, first thing you need to accept is that the bitcoin guarantee of fixed monetary supply does not exist. Second, completely unanswered issue is that why the heck bitcoin would be any better from fiat as the base of a fractional reserve banking system.
- dpc_pw 7y ago1. There's nothing to stop fractional reserve banking. Bitcoin is just a more convenient bearer instrument (more portable, divisible, verifiable than gold), so if you don't trust a bank, it would be easier to opt out. 2. Personally I think fractional reserve banking is at very least problematic, because it leads to competitive advantage, but also eventual systemic collapse. (More about it: https://twitter.com/dpc_pw/status/1195932699141103618 https://twitter.com/dpc_pw/status/1195932699141103618)