Quote from: DooMAD on Today at 11:21:42 AM

Quote from: Snowshow on Today at 10:04:31 AM

Debt is a resource that is protected with the collaterals of the borrowers. The collaterals of the borrowers didn't cease to exist just because a particular bank became insolvent.

But see, that's the rub, isn't it?

If you owe debt to the failing bank, like a mortgage, the failed bank can sell your debt on to a different bank. But the money raised through that process will go to shareholders and bondholders first. After the dust settles, there isn't enough money left to cover what is owed to savers due to how fractional reserve works.

If the bank owe you money because you are an unsecured creditor, that debt does not get sold on to another bank. It's a one-way street. If you owe the bank, your debt stands. If the bank owe you, that debt can and will be voided. Again, you are only covered up to the amount your government are willing to protect. Anything above that amount is likely forfeit.

You, like most of the general public, do not seem to grasp this reality. This has happened before. It will happen again. But not in Bitcoin. Because we are not a debt-based system.

Wrong. If you hold fiat currency, that is, numbers it is the banking system, it is that system that ows you, not a particular bank. So if a particular failed bank sell their assets (loans included) to a different bank, it is that bank that will force the borrowers to repay their loans. And in order for the borrowers to be able to reply their loans they are forced to provide labour, services and products to the number holders. In that way, the debt, that the system owes to the holders (because they invested in debt whose quantity is represented with numbers) is paid.

Bitcoins on the other hand are not numbers that represent quantity of debt or other resource that people own. Bitcoins (lowercase "b") are just units of Nakamoto's imaginary number (21 million) that the system or network (Bitcoin) attributed to people's addresses as a way to label that they joined the Nakamoto scheme. Bitcoins are simply a modern way of labeling members of a traditional fraudulent investment scheme.