Quote from: rusane on April 05, 2013, 03:57:49 AM

Quote from: laffenlarry on April 05, 2013, 01:06:04 AM

... and you can Earn INTEREST!

I am curious; how do you pay interest without engaging in fractional reserve lending or otherwise debasing the currency through the money multiplier effect? Doesn't this undermine Bitcoin's raison d'etre?

Well see this is where theory and concept work are a lot of fun.

Let's say that you make a transaction, and there was a minimal fee - now this is a just VERY Wild and outrageous example; but none the less makes it rather clear we think.

From your transaction we gain a fee. Now let's assume we use that fee, in part, to buy a packet of seeds. And let's say those seeds are planted, and they yield tomoatoes. In turn the tomatoes get sold. This yields a revenue. After the seed sale and farming and expense, etc., are paid, let's assume there is a profit.

The bank, having engaged in the producution fo the seed, through perhaps a 'branch of it's operations' like starting small businesses; would be paid a portion of those profits.

The bank then, rather than being solely concerned with gaining money, seeks to gain profits, and redistriute them across the accounts, in a more a humanistic harmonic manner. Not with One Sole Goal of profits, but to make profits, and share them across the accounts as benefits or bonusus.

As I said wild. But clear.