3 ms·
The article uses bank and bank deposits as an example of trust, and presumes that because Bitcoins lack these, it is based on mistrust. But this is a false ana
by rlpb 14y ago
The article uses bank and bank deposits as an example of trust, and presumes that because Bitcoins lack these, it is based on mistrust.
But this is a false analogy. Bitcoins are analogous to cash, not to banks. Those involved in Bitcoin expect Bitcoin banks to spring up.
Those who are trading on Mt Gox are already trusting Mt Gox with their Bitcoin.
- jbverschoor 14y agoYou can still have bitcoin banks that are allowed to "print" money like they do now. It would be the bitcoin dollar. It will first be backed by actual bitcoins. After a while, banks would negotiate the rights to lend out money they don't. They'd only need a small ratio. We then have the same situation as now ;) The good thing about BTC is that it's a cheap fast and safe way to transfer money and the supply is limited
- dmm 14y agoBitcoin banks can be full-reserve. Meaning that savings and loans are maturity matched. So if the bank wants to give someone a 2yr loan they have to find a saver willing to make a 2yr deposit. Demand savings accounts would have negative interest, meaning you would pay to have a regular savings account that you could access any time.