#btchel2025
”Words aren’t harmful…”. Nonsense. If they cannot be harmful, why do they frequently result into violent actions, which when cumulated harm the community? Hurtful words and gestures -> violence -> public unrest -> social norms -> public laws… the causality should be clear enough alright. Even if you don’t like the last part, interference by a central governance, there is a need for social norms incl. their enforcement.
If you are planning a visit to Madeira, make sure you join us for a nostr:npub1jr8sgwrpuk66n9evk76jnfd6wxept4k3uv2vwjw42fhvzvl3mdes38wwnw on SATurday.
Popping by in four weeks. It would be great to meet up with local bitcoiners 👍.
BTCHEL 💪🏻
People seem to mean different things when they talk about the fractional reserve banking. What’s yours?
The Reorg, Episode 2: nostr:nprofile1qqstn8du5qvy5vkw2kgyevn8kghyxjpre9l5rrekmt6a9hlsm4a4cfcvh2khc joins nostr:nprofile1qqsf272yfpfzyypcmjarg5fz27mx58rwt0d5xwdk09yzd4qzfvlye6guv4mtx to discuss his 2013 article "Fractional Reserve Banking is Obsolete."
Links below.
Comparative Analysis of Fractional Reserve Banking vs. Full Reserve Banking (a’la Duck.ai)
**Overview**: The debate over fractional reserve banking (FRB) and full reserve banking (FRB) centers on their respective impacts on economic growth and financial stability, with connections to Modern Monetary Theory (MMT) and classical economic theory.
**Key Points**:
1. **Economic Growth**:
- **Fractional Reserve Banking**: Studies indicate that FRB has facilitated economic growth by enabling credit creation, which stimulates investment and consumption. Access to credit is positively correlated with economic expansion, particularly in developing economies. This aligns with MMT, which emphasizes the role of demand and government intervention in driving growth.
- **Full Reserve Banking**: While FRB may enhance growth, full reserve banking (FRB) could limit credit availability, potentially hindering economic activity. This perspective resonates with classical economic theory, which posits that "supply creates demand" rather than the other way around. In this view, ensuring a stable supply of money and savings is essential for fostering economic activity, as production leads to income generation, which in turn creates demand.
2. **Financial Stability**:
- **Risks of FRB**: Historical financial crises (e.g., the Great Depression, 2008 financial crisis) highlight the risks associated with FRB, including excessive credit creation and bank runs. Critics argue that these risks undermine economic stability, a concern that aligns with classical economics.
- **Stability of FRB**: Advocates for FRB argue that it could mitigate risks by ensuring banks do not engage in risky lending practices, promoting greater financial stability. This approach reflects classical economic principles that prioritize a stable financial environment.
3. **Comparative Studies**:
- Direct comparative studies on the overall economic performance of FRB versus FRB are limited. Most research focuses on specific aspects, such as credit availability and stability.
**Conclusion**: While FRB has contributed to economic growth through credit facilitation, it is also linked to financial instability. FRB may offer greater stability but could restrict credit availability. The net impact of each system is complex and context-dependent, warranting further empirical research for definitive conclusions. The interplay between these banking systems and economic theories (MMT and classical economics) adds depth to the discussion of their implications for economic performance and stability.
Ha ha. New synonym for risk averse.
Agree that martial way is a path to remove that insecurity, or fear as Yoda put it 😉. But not by way of comparison. Wu wei.
Wise teacher said: ”Fear leads to anger, anger leads to hate, hate leads to suffering.” Remove fear to start the healing process 🙂.
Wasabi Coinjoin closing down too…what’s your thoughts on that?
What would you suggest/need?
My point exactly, there might be many more like you, and the institution won’t be there either. Where next then?
Wonder if there is anything left of #binance after 5 years of enforcement with or without CZ 🧐. Will you keep sourcing you #bitcoin there or more over?
Interesting theory, or fair point even in absence of any conspiracy. What’s the word on the street on Binance’s own BTC holdings?
Rumour is that Silvergate is disposing its BTC?!
Depends whether you refer to deposit or custody (like in case of FTX). The latter should not be a problem.