BTC and gold absolutely can be used for fractional reserve banking. Gold was used for this purpose for millennia. Private banks store gold and make loans in ban

BTC and gold absolutely can be used for fractional reserve banking. Gold was used for this purpose for millennia. Private banks store gold and make loans in bank notes backed by hard currency, and provided there isn’t a run on the bank, wealth is created. This is banking 101 and has been completely warped by central banking system with fiat currency printing, to the point where normal banks don’t even serve a real purpose anymore other than to decentralize allocation of capital a bit and outsource the vetting of loans. But these could all be done by the central bank at this point and the fact normal banks exist at all is because of history.