Re:Worries Grow That the Price of Bitcoin Is Being Propped Up
by spookthesunset on Thursday February 01, 2018 @02:13PM
(#16284819)
> is this any different than what banks have been doing for forever with fractional reserve
No. They are different. The bank turns liquid cash into much less liquid assets (houses, cars, boats, new businesses) by way of loaning out the money. All of the banks liabilities (the depositors) are backed by the banks assets (loans for stuff).
No. They are different. The bank turns liquid cash into much less liquid assets (houses, cars, boats, new businesses) by way of loaning out the money. All of the banks liabilities (the depositors) are backed by the banks assets (loans for stuff).