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But then you don't have the convenience and liquidity of a bank account. The system works because the bank can invest the aggregate deposits of all depositors a

But then you don't have the convenience and liquidity of a bank account. The system works because the bank can invest the aggregate deposits of all depositors and still be ready to cash people out as needed (of course, barring a situation like this one, which is what the deposit insurance is for).

xthrown1 4y ago
The majority of people don't need daily bank accounts. The only reason why we are using them is because to dollar notes have not kept up with inflation. A $500 bill from 1900 would be a $17,500 note today. Two of those notes provide more liquidity than the majority of bank accounts in the US.
- BlueTemplar 4y ago
  Don't underestimate the risk of getting robbed of your savings.
  - xthrown1 4y ago
    My house has been broken into fewer times than the number of bankruns in the last week.
    - mtrower 4y ago
      Perhaps in part owing to the fact that people don’t generally keep hefty sums of cash in hand? Anyway, how are you expecting to transact digitally with your paper notes?