News for hackers. Stuff that matters.

A comment on Sen. Manchin demands complete US ban on Bitcoin. Parent comment

Re:Sen. Manchin demands complete US ban on Bitcoin by smtddr on Wednesday February 26, 2014 @04:31PM (#7308031)
There is no way I have enough time in my life to fully understand how the banking system works to judge their worth. And I suspect those in power prefer that the masses don't have that understanding either.

I barely understand how my Honda Civic works.

[ Parent | on HN ]
Re:Sen. Manchin demands complete US ban on Bitcoin by drcode on Wednesday February 26, 2014 @04:49PM (#7308209)
You can't look online and find info from more knowledgeable people on whether the Honda Civic is a good car?
[ Parent | on HN ]
Re:Sen. Manchin demands complete US ban on Bitcoin by smtddr on Wednesday February 26, 2014 @05:00PM (#7308327)
Sure I could do that. That's how I ended up with a Honda Civic. I can also ask my friends if they like Bank Of America or CitiBank or whatever; but to truly understand the health of a bank... I'd need a degree or something.
[ Parent | on HN ]
Re:Sen. Manchin demands complete US ban on Bitcoin by drcode on Wednesday February 26, 2014 @05:05PM (#7308373)
No, you just go to a bank that maintains 100% fractional reserves (if you don't wan't to take on additional risk)

No degree required.

[ Parent | on HN ]
Re:Sen. Manchin demands complete US ban on Bitcoin by smtddr on Wednesday February 26, 2014 @05:38PM (#7308674)
Easier said that done apparently... http://www.ronpaulforums.com/showthread.php?148961-Any-Full-...

I'm having trouble understanding how such a bank would be profitable; assuming banks need to be profitable to justify their existence.

[ Parent | on HN ]
Re:Sen. Manchin demands complete US ban on Bitcoin by drcode on Wednesday February 26, 2014 @07:36PM (#7309406)
They're not profitable because of the existence of fdic insurance.
[ Parent | on HN ]
Re:Sen. Manchin demands complete US ban on Bitcoin by dragonwriter on Thursday February 27, 2014 @02:53PM (#7314542)
> They're not profitable because of the existence of fdic insurance.

Even without FDIC insurance a bank with 100% fractional reserve couldn't be profitable (or even operate), unless accounts had negative interest rates, as it couldn't loan money out from deposits to earn revenue.

[ Parent | on HN ]