Quote from: SPC_Bitcoin on October 21, 2013, 07:03:41 AM

bitcoin requires no bank. having or using a bank for bitcoin would be stupid. put it in your wallet and leave it there, or spend it, or loan it. I don't recommend loaning it, unless you know and trust the person, get collateral.

If you loan it, you might as well loan to a bank. In fact, the likelihood of getting scammed in a loan is probably lower with banks.

Storing your bitcoins in your paper wallet and leaving them untouched may be safe, but it is certainly not the most profitable option.

Now, let's imagine a scenario. Say, in 5 years, you want to buy a house. All you got is bitcoins. Will you part from your coins in exchange for the house, or would you rather take a loan on the house and leave your coins as collateral? What if the bank even pays interest on said collateral?

I know, a lot of people will come up with the old (incorrect) argument that interest is not possible in a deflationary currency etc. pp. Well, making a false statement over and over again...
Just because something might not be sustainable over an infinite period of time does not make it impossible.

Quote from: SPC_Bitcoin on October 21, 2013, 07:03:41 AM

without a bank there can be no fractional reserves.

Banks are not needed. Many debtors can do some kind of "fractional reserve". If you regularly buy from different sources with a payment target of a few weeks, you can, too Wink

It is in fact illegal for most businesses, though, while it's perfectly legal for banks.