Will A Fractional Reserve System Exist On A Bitcoin Standard?
The free banking era is the closest example of how banking might look on a bitcoin standard, but will credit and fractional reserves be part of that system?
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The free banking era is the closest example of how banking might look on a bitcoin standard, but will credit and fractional reserves be part of that system?
Many cryptocurrency lending schemes are eerily similar to banks’ abilities to loan out money and create debt through fractional reserve banking.
The case highlights the unfair and opaque operations of the Federal Reserve and its selection of banks.
Bitcoin was designed to be a system without middlemen, but unless we stop pretending it is perfect as is and work to improve it, middlemen will be the only way to interact with it for most people.
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