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"Crypto" had invented a new type of banking for the worse
298 sats \ 6 comments \ @Derpitor 13 Nov 2022 bitcoin
I call it "Fictional Reserve Banking"
This is where a company prints tokens out of thin air and uses this as their "reserves" As we have seen from the FTX blowup and Alameda using FTT as collateral we have witnessed first hand this new type of Banking that is actually worse than the banks.
Create token. Pump it, use it as collateral for loans. Your reserve is now a fictional as it's created by nothing. When your token crashes the contagion effects are even worse than banks. This is bad and needs to stop.
What are your thoughts on this?
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8 sats \ 0 replies \ @satcat 13 Nov 2022
Binance's valuation too is based on ~50% holdings of it's own shitcoins
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0 sats \ 0 replies \ @TomK 14 Nov 2022
What a miracle at last: being Your own central bank with a cold storage of Bitcoin... waiting patiently for all the applications on top being developed by a growing amount of top and passionate developers. Its hard for guys like me without tech-background to follow up. Just being thankful from time to time...
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0 sats \ 0 replies \ @selfish_gene 14 Nov 2022
это для рисков кто торгует на рынке... остальное нас не косается? ты держишь на бирже? или как сказал сатоши?
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0 sats \ 0 replies \ @Hermit 13 Nov 2022
To me you are describing centrals banks. I will call it better "Privatization of the Central Bank System".
Everybody creating copies of Bitcoin for personal profits was already predicted in the original Bitcoin forum in 2010, probably they didn't expected to reach this scale, though.
These are written crisis that we need to pass on the way to HyperBitconization.
After this one will be the crisis of the stablecoins and then CBDC crisis. No problem, it will stop.
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0 sats \ 0 replies \ @inevitable 13 Nov 2022
I agree with all of it except that actually I think the contagion effects here are more healthy – no bailouts with the stolen money and the market is being cleansed. The (rethorical) question is if the lessons are being learned 🙄
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0 sats \ 0 replies \ @2big2fail 13 Nov 2022
this is almost identical to our US dollar system minus the federal reserve lender of last resort
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