There is already fractional reserves among the Bitcoin and alternate exchanges and they are creating immense inflation.
I wasn't aware of this, can you please explain where they get this fractionally generated Bitcoin from?
fractional reserve can still happen in cryoto. It just means the exchanges don't have enough of what ever currency to cover the mass withdrawal of that currency. They may be running in the red and took some deposits to stAy open with the intention of replacing it from future profit.