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Money Without Trust

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Bitcoin held in self custody is unique in its lack of counterparty risk, as global market chaos unwinds this will become much more obvious.

The four main banks of bitcoin and “crypto” are Signature, Prime Trust, Silvergate, and Silicon Valley Bank. Silvergate and SVB have already stopped withdrawals. More banks will go down before the chaos stops. None of them have sufficient reserves to meet withdrawals.

https://www.discreetlog.com/money-without-trust/

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Lucas X. 2y ago

I hadn't thought about this aspect.

A fractional bank dealing with Bitcoin is bound to not have enough funds.

It's just like two different metals touching, one of them will rust.

In this case its the one that needs trust

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