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No, this is a complete misunderstanding. It does not matter, how Bitcoin works. The bank can tell their customer "Your balance of XYZ is 1000". No matter if X
by JonathanBeuys 4y ago
No, this is a complete misunderstanding.
It does not matter, how Bitcoin works.
The bank can tell their customer "Your balance of XYZ is 1000". No matter if XYZ is Dollar, Euro, Rings of Jupiter or Bitcoin. Banks "create" whatever they like out of thin air by just telling their customers that their "balance" is so and so.
That's why Henry Ford said that if people understood the monetary system, there would be a revolution tomorrow.
If this concept is new to you, then google "money is debt" and you are up for a ride.
- sph 4y agoYours is a complete misunderstanding. I can write on a piece of paper that I have 1 million Bitcoin, but I can't transfer it to you anyway. That's the point.
- idontwantthis 4y agoWhat you're describing is a made up fiat currency with the same name, not actual Bitcoin. Bitcoin isn't real unless it exists according to the Bitcoin blockchain. A bank can't create Bitcoin anymore than I can create dollars. I can create something that I say is dollars, but when I try to use it as dollars no one will accept it.