Interesting quote from Hal Finney about L2s, bitcoin banks, and fractional reserve banking:
“There is a very good reason for Bitcoin-backed banks to exist, issuing their own digital cash currency, redeemable for bitcoins.
Bitcoin itself cannot scale to have every single financial transaction in the world be broadcast to everyone and included in the blockchain.
There needs to be a secondary level of payment systems which is lighter weight and more efficient. Likewise, the time needed for Bitcoin transactions to finalize will be impractical for medium to large value purchases.
Bitcoin backed banks will solve these problems. They can work like banks did before nationalization of currency. Different banks can have different policies, some more aggressive, some more conservative. Some would be fractional reserve while others may be 100% Bitcoin backed. Interest rates may vary. Cash from some banks may trade at a discount to that from others.
I believe this will be the ultimate fate of Bitcoin, to be the ‘high-powered money’ that serves as a reserve currency for banks that issue their own digital cash. Most Bitcoin transactions will occur between banks, to settle net transfers.
Bitcoin transactions by private individuals will be as rare as… well, as Bitcoin based purchases are today.”
We're already seeing the beginnings of this with federations and mints.
It'll probably confuse the pudding out of normies.
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if you want that "we're so early" feeling then all you have to do is read a zerohedge comments section
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Those early guys were such visionaries. It’s the calibre of Hal and some of the others that helped me see the light regarding bitcoin.
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I believe that Bitcoin is like a diamond. Once you buy it, you don't feel like selling it because its value will increase in the future. Am I right or wrong?
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That's what we need for a better mainstream adoption of Bitcoin.
Hal Finney was definitely a legend with pinpoint Perspective about Bitcoin's future.
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Man, Hal Finney is a legend. He should still have quite a bit of bitcoin stored. One of the very first miners!
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He is no longer among the living.
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You are right, WAS a legend. That man lived though!
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A lot of Bitcoin articles from ZeroHedge lately. Have they finally given up on Ethereum?
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You know, I remember all those eth articles they used to have. Maybe they've seen the light.
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I remember a twitter post they had soon after ordinals launched and the network was clogged and the bitcoin price dropped and they said something to the effect of "bitcoin crashing because it makes for a bad ethereum".
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That can be read two ways: Criticizing bitcoin because using ordinals is imitating a shitcoin. It could be a maxi tweet.
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I don’t think it was meant that way. They have spoken glowingly about ETH in the past.
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In that case you're probably right. I sometimes don't notice which articles are pulled from other sites and which are originals.
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I see. Does anyone remember peercoin? I wonder if it went extinct?
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Zerohedge used to only do other coins?
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No. I don't believe that is the case.
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That is interesting, he never thought that btc would be used for purchasing. Only for holding value.
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Bitcoin Bank #417336
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