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Say someone takes out a USD loan against their #bitcoin. Where do those newly created dollars come from? Presumably those newly created dollars debases the supply of everyone else holding dollars?

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Discussion

tuma 1y ago

Basically, yes!

Usually, every time you get a loan the bank is creating newly digitally printed money out of nowhere.

Diego Valley 1y ago

🤦‍♂️ so the ‘crypto bank’ will just be running a fractional system like all the other banks?

tuma 1y ago

Probably so. I do not think there is any bank in the world which does not perform fractional reserve.

Anchorite 11mo ago

Nothing gets fixed until Bitcoin ascends

Thekid.999 11mo ago

They need the actual cash for this. Like on ledn.io the lend cash to you bank account so they need the cash lthat is lend out

In coinbase caee they dont need the cash because you get usdc wrapped in foil