There is nothing particularly new happening right here. That’s just a narrative coming from people who take moral and ethical stances on the immorality of fractional reserve banking. 100% of banks in the Western world would collapse if they had a run on them. This isn’t a mystery. Everyone understands this. Both people who are pro-FRB and anti-FRB. It’s not like some mind-blowing wisdom.

Banks take deposits and they make loans or buy assets with those deposits. That’s what they do. There’s nothing new about that. The same was true when we were on the gold standard. And honestly, I have made the argument that even in a hyperbitcoinized world, that would STILL be true.

I think the argument that bitcoin will bring an end to fraction reserve models — which are fundamentally about adjusting time preference to maximize capital efficiency — will continue to happen!