What’s to say that even on a #Bitcoin standard, fractional reserve banking wouldn’t emerge?
Discussion
There's no guarantee. That's why self custody is so important.
"Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending."
-Satoshi Nakamoto, Bitcoin Whitepaper.
I get that. But how then, do you think lending would work on a Bitcoin standard?
It will. Paper bitcoin is already here and isn’t going anywhere unless there is regulation for proof of reserves. The key difference is, self custody keeps that in check on a company by company basis.