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🚨 Make the Rehypothecation of Bitcoin Custody Illegal – nostr:nprofile1qy2hwumn8ghj7erfw36x7tnsw43z7un9d3shjqpqs5yq6wadwrxde4lhfs56gn64hwzuhnfa6r9mj476r5s4hkunzgzqhq8lse

"American banks now have the regulatory green light to enter Bitcoin custody in a big way. If we do not establish firm guidelines and prohibitions, the next wave of Bitcoin-lending catastrophes could dwarf the collapses of FTX, BlockFi, and Genesis, putting ordinary savers and the broader financial system through turbulent times. The time to act is now."

https://www.nobsbitcoin.com/make-the-rehypothecation-of-bitcoin-custody-illegal-preston-pysh-2/

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Discussion

Big L ⚡️ 1y ago

The problem are wannabe bitcoiner who just buy Bitcoin for profit. They miss the larger view entirely. Bitcoin is not for the weak, it is for strongwilled humans. Bruce Lee would have been one Bitcoiner

Resonance Cascade The II 1y ago

Yeah but then Brad Pitt would of beat his ass and taken his 12 words

Liberty Farmer 1y ago

That's doesn't make any sense to me. A full reserve bank should be allowed to make loans out to the public, businesses, etc.. up to their actual deposit level. That's how banking works.

You decide to give your cash or Bitcoin to a bank to earn yield or keep safe. They pay you, they loan it out and make money. You take a risk on deposit they take a risk on the loan.

The best way to minimize risk is to ensure a 1:1 ratio on reserves. Then if a loan goes bad, all depositors take a haircut to cover, then you can continue or pull out or whatever.

The issue isnt full reserve loans, the issue is 1000x loan to reserves.

It is asinine to think that any semblance of modern society can exist, thrive and grow on savings alone. It has never been that way in a thousand years.

If I want to start a commercial printing business for instance. There is zero chance I have the capital to buy the building, machinery, and staff it without a loan. The press alone could be millions. Same goes for many businesses we know and use daily.

Take the printer and fiat out, go full reserve is the proper way forward.

caleb 1y ago

Being anti-rehypothecation is dependent of fiat existing. On a bitcoin standard, any loans would be given in BTC. Without rehypothecation, loans would cease to exist. Is that the goal?