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0 sats \ 2 replies \ @ama 14 Apr 2023 \ parent \ on: Fractional reserve banking in Bitcoin bitcoin
Sorry, but no. Banks lend money they don't have and that they create out of thin air precisely by fractional reserve, which cannot happen on PoW blockchains (BTC or LTC) layer 1.
Of course there can be other non institucional form of fraud, like lending other things than BTC or LTC using them as "collateral" that they don't have, like Sam Bankman-Fried and other crooks have done already. And that'll keep happening, of course.
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0 sats \ 1 reply \ @taxd OP 14 Apr 2023
This is a very common misconception which many people have. I don't care, I make money out of peoples mistakes instead of arguing.
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0 sats \ 0 replies \ @ama 14 Apr 2023
Not arguing, just trying to educate the misinformed hopping to help them better understand the corrupt system the neo-liberalism has brought us, and why Bitcoin is so much relevant than they might think.
As US Space Force's Major Jason Lowery has explained to the US Defense Department, Bitcoin is a weapon of self-defense and not just money. And I'm convince it is so not only for States (mainly for every other one to defend themselves from US predatory abuse), but also for individuals (mainly the working class and the poor, closer and closer as time pases), companies (mainly small ones), and all kind of other organisations.
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