Post
Topic
Board Economics
Topic OP
FRB and Bitcoin
by
Kilmyos
on 20/12/2011, 21:04:26 UTC
I was reading on https://en.bitcoin.it/wiki/Fractional_Reserve_Banking_and_Bitcoin and it states "The Monetary Base of Bitcoin is limited to 21 million. But because Fractional Reserve Banking is possible, the money supply of bitcoins (which includes demand deposits) can greatly exceed 21 million."  Huh Huh

How is this possible? Wouldn't that be equal to a central bank printing money out the ass?