This aspect of banks was explained really clearly in the classic Christmas movie “It’s a Wonderful Life” (1946, with Jimmy Stewart).

Point being banks, unlike Bitcoin, reinvests dollars deposited back into the community. So the money isn’t all available for withdrawal at a moments notice. That’s a good thing, not a bad thing.

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If by "invested in the community" you mean "literally made up out of thin air and largely sent to hedge funds" sure.