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Replying to Avatar BitcoinLoveLife

The federated are given a kind of btc paper called fm-sats.

When someone from the federation wants to pay a merchant outside of it, what he does is "sell" the corresponding amount of fm-sats, and the federation sends the merchant real sats.

It is impossible to control that the federations do not issue more fm-sats than the collateral they have, then secondary markets for fm-sats are organized and thus we already have much more paper sats than real sats.

Exactly what the banks did in the days of the gold standard.

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Omekau 2y ago

Wow, definitely need to keep an eye on this then. Didn’t know about the creation of “fm-sats” aka fake bitcoin. Thanks for explaining, about to zap ⚡️

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