Post
Topic
Board Bitcoin Discussion
Re: Where do Bitcoins Came from?
by
Ueshiba
on 13/02/2016, 00:24:58 UTC
Out of curiosity I just thought where do bitcoins came from??

Are you at all curious where the US Dollar comes from?

Quote
Person A deposits $100 in a bank, which means he has $100 he can spend. In accordance with Federal Reserve regulations, the bank is allowed to loan up to 90% of this money to someone else, say, Person B.

Once Person B has $90 in his bank account, this makes a total of $190 available to be spent. But his bank can loan up to $81 (90% of $90) to someone else. Now a total of $271 is available to be spent. And so on.

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