The real problem with all this, IMHO, is having a central bank. You can't expect a company (banks in this case) to act responsibly if it knows it will be rescued every time it fails. (Central banks cause a bunch of other problems, of course, this is just one of them).
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Replying to @opchecksig @YangVentures and
I don't think fractional reserve itself is unethical (if the customers are aware of it), but its ability to survive should be put to the test on a free market of banking, not a central banking system.
1 reply 1 retweet 13 likes -
Replying to @opchecksig @YangVentures and
Maybe fractional reserve works to a certain point, maybe not, maybe it would work in some situations but not in others, the market would find out, but it can't, because there is no market right now, just a central bank backed oligopoly.
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Replying to @opchecksig @YangVentures and
Finney:pic.twitter.com/Fl4Re5gw9x
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Replying to @opchecksig @YangVentures and
@NickSzabo4 writes a lot about free banking, tagging him if he wants to add anything.3 replies 0 retweets 2 likes -
Replying to @opchecksig @YangVentures and
Free banking history helped inspire my design of bit gold, but mostly as "what people really wanted at the end of the day was the gold, the bank note [today could be digital cash] was merely an IOU for gold. So how do I make the actual money, the gold, in digital form?
2 replies 9 retweets 62 likes -
Replying to @NickSzabo4 @opchecksig and
From that POV, the basic problem with free banking is that for various reasons banks convinced people to swap their trust-minimized silver and gold for trust-based gold IOUs. Fractional reserve and modern fiat are both consequences of that misplaced trust.
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Replying to @NickSzabo4 @opchecksig and
So I set myself the challenge of using my computer science knowledge to design a trust-minimized form of digital money, and the result was bit gold.
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Replying to @NickSzabo4 @opchecksig and
I hoped such money would be convenient enough that economies would return to vulnerability-minimized money. We still see the trust-the-convenient-exchange vs. hold-your-own debate today, but Bitcoin gives us a better chance to minimize the vulnerability of money than gold did.
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Replying to @NickSzabo4 @opchecksig and
What was the reason for Bitgold's failure? I never saw a write-up on this, if there was one.
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Replying to @3DNuts @opchecksig and
It's much easier to run actual software than a design for software. :-)
7:41 PM - 8 Feb 2019
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