Post
Topic
Board Bitcoin Discussion
Merits 1 from 1 user
Re: Bitcoin & Banks
by
Artemis3
on 03/01/2019, 22:02:34 UTC
⭐ Merited by o_e_l_e_o (1)
I understand what your trying to say  . yes  both of them are different though people still thinks that bank and bitcoin are the same because bitcoin can be store of value and it can be used as an invesment simillar to what they hear on the traditional banks  but for me , both are actually different because bitcoin is commonly known as a curency while banks are  a company that produces money  .

Banks are not supposed to "produce" money, but the sad truth is that they do, out of thin air! The way modern banks work is pretty similar to a ponzi scheme, its called Fractional Reserve Banking something that would be illegal (and it was until the 20th century) but the banks bought their way thru legislation and its perfectly ok to play roulette with the savings of people...

But people are seriously misled into thinking banks store money (they don't), or that their fiat money is backed into something (its not).

The scheme will hold as long as a sum above the fractional reserve is now withdraw at the same time (see?, just like any other scheme).

So if the bank keeps 10% of the money, that's its limit before going bankrupt. But before that happens, Central Banks to the rescue. Now that 10% would need to be nationwide withdraw, to bankrupt the central bank, but World Bank to the rescue! now in the world 10% needs to be withdraw to bankrupt the entire system... (actually the fraction is different on every country).

If only more people knew about fractional reserve banking... Debt based economies (school of chicago) would crash. Stop trusting banks!