There are actually no reserve requirements as of 2020 so it's much worse than you stated
Discussion
That’s true, but what’s wrong with factional reserve banking? It requires faith, like that which many ppl have here for bitcoin.
1) It's compounding leverage, and becomes very sensitive to even marginal loss of faith. You can say that 20% loss of faith in fractional banking is terminal*. 20% loss of faith in Bitcoin is just 20% loss of value.
*because it would be terminal, their risk of such losses is implicitly insured by the tax payers (slaves) shavings and time.
2) The banking cartel doesn't allow your rich uncle to issue loans out of thin air. This privilege is just for the counterfeiting elite.
That’s somewhat true, but bitcoin would be similar (and it probably is, I bet most exchanges don’t actually hold as much bitcoin as they ostensibly do based on deposits) but it’s really a fantasy question because bitcoin isn’t a real currency.
But yeah, regulated institutions have certain allowances, even some they shouldn’t tbf.
Basically it's a con game. Their most valuable asset is the confidence they can aquire. Now I see why they hate our memes so much...
Yup. Memes are the power of the (seemingly) powerless.
bitcoin and crypto are no different. the only thing with real value are tangible assets. money just exists to trade things of actual value more easily.
What about Pokémon cards?
that's just a solid investment obviously. joking aside, it's hard to buy a house with nothing but Pokemon cards.
My point is - value is subjective. For you, it might be only in physical things, for others it might be something else.
The function of the money has value by itself. Some things serve this function better, and then get monetary value premium, some worse. And this perception is subjective as well.
I'd just argue that I can see more money-utility in fixed amount of digital tokens that people largely hold in their 'wallets' than the levered debt instruments we're forced to custody with 3rd parties.
