Hot take on fractional reserve banking: Its's fine as long as depositors' accounts are clearly and no longer considered cash. You can choose to put your USD/GBP/ZAR into an account that's used for loan creation, but should be clearly demarcated and probably have a call period. Then its just quite obviously an investment.
This can work for BTC too as long as those lending their BTC know they are, and get compensated for the risk. When this disclosure doesn't happen (e.g. FTX) then it's fraud. Today, FRB is effectively fraud - it's just easier to see when we replace USD with BTC, and a bank with a scammy exchange.
Insert meme: Corporate wants you to find the difference between these 2 pictures ...
gunson / Gunson
npub1a3…8kzd0
2023-03-23 09:32:24
Author Public Key
npub1a3qwr29jp90868tqeyt6tc4jcj4h4rv9cr6ug5f70nkux3wyf52sz8kzd0Published at
2023-03-23 09:32:24Event JSON
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"content": "Hot take on fractional reserve banking: Its's fine as long as depositors' accounts are clearly and no longer considered cash. You can choose to put your USD/GBP/ZAR into an account that's used for loan creation, but should be clearly demarcated and probably have a call period. Then its just quite obviously an investment.\n\nThis can work for BTC too as long as those lending their BTC know they are, and get compensated for the risk. When this disclosure doesn't happen (e.g. FTX) then it's fraud. Today, FRB is effectively fraud - it's just easier to see when we replace USD with BTC, and a bank with a scammy exchange.\n\nInsert meme: Corporate wants you to find the difference between these 2 pictures ...",
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