GM nostriches! 🌞☕💜🧡 #coffeechain #plebchain #grownostr

Some thoughts about fractional reserve #Bitcoin after listening to the latest WhatBitcoinDid pod with Jeff Booth and George Gammon.

They sort of agreed to disagree on the LIKELIHOOD we get an overgrowth of paper Bitcoin in hyperbitcoinized world.

But what they didn't discuss was the technical aspects of what paper Bitcoin is and how it would work.

The thing about fiat is that the "paper fiat" that gets created when a bank issues a loan, is actual units of the currency. They are not just promissory notes to fiat, they ARE fiat.

That is not the same with Bitcoin. Paper Bitcoin can't be sent on the blockchain. So if you want actual units of the currency Bitcoin, promissory notes are not the same thing.

And additionally, the promissory notes would not have any of the beneficial properties that the Bitcoin network provides, but would itself have to create a new type of fiat network to handle the transactions.