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What do you mean by "fractional reserve"? I get the impression that the Bitcoin world means something different by that term than the banking world. Edit: I th
by kens 11y ago
What do you mean by "fractional reserve"? I get the impression that the Bitcoin world means something different by that term than the banking world.
Edit: I think some people are confusing fractional reserve (where reserves are less than deposits due to loans) with insolvency (where assets are less than liabilities). MtGox's problem was insolvency, not fractional reserve.
- ikeboy 11y agoThey mean that the company holds less bitcoins than the sum of their deposits. See MtGox for an example of when that went horribly wrong.