Bitcoin is not just for the rich, even when transaction capacity is severely limited. We will have off chain service companies to handle that. Here is how it could work: A base equity capital. Let's say around 100 bitcoin to cover assets under management 1000 bitcoin. The board and the CEO is made responsible with all their assets (that has been the case in earlier times). Time deposits, let's say in general 3 years. You can pay immediately by transferring your deposits, but you can not immediately withdraw your bitcoins. Loans made to others also timed, say the same, 3 years. The institution keeps a sizeable reserve, let's say 30 %. This will probably be prudent, the market will decide. Due to fractional reserve banking, the money volume should therefore increase by about 3333 (the current system with zero reserve sometimes, would not be possible). There will be no deposit insurance and no bailouts. Sometimes such a bank will fail to pay back, with customers loosing money, and the market will have to keep the industry in check.
I believe the death of the Industrial Age and the birth of the Knowledge Age will kill usury without causing a Middle Ages (Dark Age). I have covered the reasoning extensively in the
One-world reserve currency and the
Economic Devastation threads (as AnonyMint and various other pseudonyms).
IMO, you are describing a high fixed capital investment Industrial Age economy that is dying into a NWO outcome.
Many of us are tired of that shit of trusting people. We want a meritocracy where to earn one must
Show me the code, talk is cheap (Linus Torvalds).
In other words, we want 100% transparency on the merits of value and exchange (this is orthogonal to anonymity, which is more about escaping politics, slavery, and the refusal to forgive and forget irrelevant factors[1]). We are tired of that Old World morass, power vacuum, slavery bullshit. Tired of that shit. Tired of that shit. Tired. Of. That. Shit.
Such businesses can produce added value: Interest, loyalty function, price, speed, guarantees, insurance, cool factor, advertisements and so on. They are necessary as long as the blockchain can not serve all transactions. There is no point in working against the appearance of these services, they will exist if they are profitable, and they will expand the bitcoin volume in existence with debt.
The crucial difference is no government sponsored deposit insurance and bailouts. Therefore, it is not the same as the banking fraud going on now.
It corrupts people because it is a power vacuum (no matter how localized at the genesis) and even in cases of upstanding intentions[2] because people get themselves into promises they can't keep, then are forced to corrupt themselves (e.g. making deals with politicians and cartels, etc).
| [1] | CoinCube I pretty well fucked myself in that errant discretion area long ago, e.g. picture my resume "1994 - 2015 resided most of the time in Mindanao". So I had no choice but to exit the system and work for a system where the pedantic, irrelevant past can't matter.
I assert that having a good record in the dying NWO system is of diminishing utility. Hope you cash in your NWO chips with good timing.
A system which can't forgive the irrelevant is obviously bankrupted.
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| [2] | Randy Travis - Good Intentions
If it's Reggie typing in 50000 tickers every hour ... there's plenty of other risk.
Even if discounting the Jack Daniels attack. |