The gist of the problem is not banks, per se... but "fractional reserve" credit expansion by the United States (and other nation states) government.

Ever-increasing debt expansion beyond real underlying production growth is the root cause of monetary debasement over time.

Not "money printing," as is commonly stated.

The Federal Reserve is not the source of this credit expansion but, rather, the facilitator of ongoing Congressional misbehavior as the buyer of last resort of (unlimited) US government debt.

The great sleight of hand is the US government's ability to utilize the Federal Reserve to monetize it's own debt... covertly debasing the currency and stealing the purchasing power of its own citizens.

#Bitcoin fixes this.

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The bluecheck is already affecting your thinking 😭

BTC fixes it for those who HODL. But I wonder if it necessarily fixes fractional reserve banking? Why wouldn’t banks hold Bitcoin and then loan in fiat beyond their means, same as always?

Some would try, certainly. But they would all eventually fail, as they wouldn’t be able to be back-stopped by the FDIC.

Banks will be much less relevant on a bitcoin standard, since people can simply be their own banks with Bitcoin in cold storage.

Thanks. I hope we can find out!

Hi Mark, I wrote a paper a while back that explains how a bank manages the risk profile of its portfolio. It would help you understand why bitcoin can’t have fractional reserve. I hope it helps, if you decide to read it.

A Credit Risk Analyst’s Journey into Bitcoin https://medium.com/@kris.john.adams/a-credit-risk-analysts-journey-into-bitcoin-c035ec86ba1

Ok, but I still want to see money printers on fire ASAP! 🔥 🔥 🔥

At what point do citizens of the US take responsibility for continuing to vote candidates into office that want to

spend more and tax less, driving government debt to unsustainable levels, which will in the end force the Fed to monetize to stave off collapse?

🐔/ 🥚

🐔

Monetizing debt IS money printing.

Good point. The growing deficit or debt of the government also is like credit expansion. It gets bigger and bigger without the increase in productivity