What’s a bank run?

Reply to this note

Please Login to reply.

Discussion

A horde of people rushing to remove as much of their money from the bank all at the same time. Quite dangerous with fractional reserve banking.

Does it happen with bitcoin?!

Not quite. Bitcoin can't leave the network only exchange hands. This will only determine price value. Banks can have more money pulled out than they even promised to hold.

It’s when people try to withdraw or transfer their money from the bank. It’s a problem when the bank doesn’t have your money.

Oh good thing I don’t have any money.