Post
Topic
Board Economics
Re: Inflation, Fractional Reserve, and Bitcoins
by
redengin
on 19/08/2010, 01:34:44 UTC
As for a call on over 10% of deposits, the bank can always purchase BTC on the market.  Your assumption is that the bank is limited to a single commodity in its holdings.  I can also foresee purchasing call options to hedge the impact of expected demand.  In any event, there are many ways a market can operate to service exaggerated demand.