Bitcoin was created precisely in response to fraudulent custody schemes so prevalent & pernicious in the digital age. Unlike all those paper games, the underlying commodity in bitcoin cannot be fractionally reserved or counterfeited, but can be transferred in an hour.
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Thanks for the reply! So,
@Hasufl, do you still disagree with@MustStopMurad, as I thought you did in the@stephanlivera podcast? Or did you just mean to say that fractional reserve BTC is bound to be tried out by FIs, at least for a while? -
Keep in mind this is also a matter of degree to a small extent. Even now exchanges might flirt with fractional reserve at small quantities. Overall notional supply may also be affected a bit. Reverse too: temporary 101% reserve, etc.
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Unfortunately,
@hasufl went AWOL. Was really interested in his pov though.@pierre_rochard, do you care to weigh in on this topic? -
If we have on-chain scaling and 100% reserve trustless layer 2 like Lightning then I don't think fiduciary media would have much relevance at all. If we don't, fiduciary media will be relevant and Murad's prediction is reasonable
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Seems logical. I still hope to hear from you,
@hasufl, if you disagree and if so, why...?
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The issue of fractional reserve banking is very controversial and there's no need to incite debate haha
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Haha... Yes, that could maybe explain why
@hasufl went AWOL. Although Austrian economics is a relatively new world to me, I am aware that this a matter of controversy. However, if all transactions happen on trustless layers, your (&Gabriel's and Murad's) conclusion seems logical.
End of conversation
New conversation -
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