And part of this is the amount of reserves that banks hold. I'm not going to claim I know anything about the reserves of FR, but many banks have a tiny fraction of their liabilities on hand. Because the more you lend out, the higher the potential profit, but also the greater risk. Again, the risk is inherent in the lending. Depositors SHOULD understand this risk.
I think the main difference would be that people would understand that loaning your money to a bank carries a certain amount of risk vs. the alternative of self custody. That has been completely ignored in our modern society and it's just the standard to leave all your cash in the custody of a bank. Lending money means risk. Period.
I get it, but this issue is baked into the bread of a fractional reserve system. You can't really blame human psychology for... well, the actions of humans. It's a bit of a prisoner's dilemma type of situation, no?
I genuinely hope things work out, as I agree a slow transition is required or else we'll have loads of pain as a society, but I believe the entire financial system is broken and further breaking.
I don't think it's a "burn it all down" mentality as much as it is a "let the market play out without government intervention" mentality. I don't want to see people get burned, but I also don't want the governmemt to subsidize risky behavior on the part of banks.
But you're right, this won't play well here.
I don't support letting people get hurt to make a point about fractional reserve banking or bitcoin.
People get hurt either way. It's a pick your poison type of situation.
But it's natural to want to secure your wealth when it's possible that leaving it in the hands of others could cause you to lose it. If that was your money, would you just leave it and hope that the panic doesn't occur or do you try to front run the panic? This is the entire problem with fractional reserve banking.
Hashrate going wild.
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I'm on the complete opposite of the spectrum.
Man, mine would be painful, 45 minutes, and a total nightmare if I didn't get some fiber.
Renting some property to a friend and making him pay in btc. Probably a bit dickish to even charge anything at all, but I want to try to onboard him onto orange coin and this seems like a decent way. I'm refusing to take anything but btc.
Buy physical books.
Clean and cook.
I don't want to live in this world anymore.