For every Bitcoin buyer, there is a Bitcoin seller. No amount of fiat actually leaves the banking system and buying BTC is not a bank run.
Discussion
Few understand this.
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explain this to me like i wear a mask outside
W/ respect I thought
1- bitcoin used to not exist; so current price of bitcoin x current number = fiat that did leave the banking system
2- bitcoin is still being mined so every new bitcoin mined and sold = fiat that does leave the banking system
3- fractional reserve banking means every fiat $ leaving a bank reduced bank fiat by x10 or more? Even if the bitcoin seller gets fiat for the bitcoin, the fiat may not be re deposited into the bank, fast enough, before that fractional leverage has impact ?
I am probably in error somewhere here.
what @girevik is saying is that no amount of buying can create a global fiat run but if everyone customer at "Alice bank" buys bitcoin using an exchange that banks with "Bob bank" then "Alice bank" can definitely have a run and "bob bank" will be left standing.
same amount of fiat in the system just all at a new bank
"Alice bank" collapses and "Bob Bank" is bigger
today "Bob Bank" is JPMorgan and will be the last bank standing and will soon be called JPMorgan-Fed bank
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It's not leaving the banking system. It's leaving your bank to some other bank
Oh, that's right 😯
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What happenes if you sell your Bitcoin and pay off your home loan?
Fiat destroyed
There's a lot of talk about your post.
Added to the https://member.cash/hot feed
And what about selling BTC p2p in exchange for services that are typically priced in FIAT? That is value that could have been entering the fiat system but is instead entering the Bitcoin system and thus, by default, leaving the FIAT system.
This is where we’re headed, but the lightning network needs to be built out by an order of magnitude. In some future state, we will be able to tap our phone at the chipotle checkout and pay via lightning. This will be integrated through every payment rail, whether online or in person. In this world, sats are simply changing hands. No conversion to dollars or sovereign currencies will ever be needed.
So what is leaving the system? Stored time? Energy? Wealth? Capital? Agreed that the amount of fiat doesn’t change but something is pulled it.
Confidence
This! ☝️
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