A correction, it is not possible to do do fractional reserve lending with Bitcoin as in lending out more Bitcoin directly than you have. You need to give IOUs with Bitcoin as reserve.
Banker understand this. The single BTC can be re-loaned multiple times. John to charlie to mike then frank. 1 BTC passed hands in the loan but created 3 BTCs worth of Debt.
The reason banks could issue so much debt with fiat, gold, silver, salt, seashells is because paper IOUs are easier to use. BCH IOUs are not easier to use than BCH.
I tried explaining this to him earlier, but maybe you'll get through to him.
Have you tried carrying a full scale desktop to your local store, set it down, plug it in, connecting the cables, synchronize the node. It is a real hassle, BCH IOUs (Tabs) way easier.
I keep an all-in-one rigged to a car battery strapped on my back whenever I leave the house. A real man uses nothing less than a full node.
That is where the Bolt11 address LN name comes from, a reference to the nuts and bolts of battery packs on the backs of real mean, and the LN get its name from the sparks of the plugs.
I misspelled men as mean, a Frankenstein(s) monster of the singular and plural form of the word, squish men and man together and you get mean.
lol thanks, just slogged through a "resource based economy" with lightrider, now this. where do these proposals come from?!
Banks would have to print notes (which no one would trust) that say they are worth one BTC.
And if a depositor at the bank tried to withdraw the one BTC, the bank would be insolvent.
This is simple lending. :) John lends to charlie then charlie lends to bob. 1 BTC has created 2 BTC's worth of Debt Contracts that need to be paid on time. This is Debt money.
And then when depositors withdrew the money proper, bye-bye bank.
No, the bank would collect Charlie and Bob Houses from the default on the 1 BTC. They didn't print money, they created Debt money contracts. They did this with Gold for centurys.
Debt money contracts are bank notes. Good luck getting someone to accept a Bitcoin bank note, when it offers no more convenience over using BTC. People wouldn't trust it.
Among other things, Bitcoin can be proven and trusted with POW and audited and traced with the transparent blockchain.
Think a loan, a promise to pay BTC in this amount of time. Its not money, but it is DEBT. They did not print anything but created 1 BTC worth of debt through the loan.
Whoever purchases the debt (you're referring to trading debt) assume the risk of the loan defaulting. You couldn't use these contracts to purchase goods. Only to cash in on the debtor.
- A better explanation of perpetual debt.
Nobody would trust a Fiat note backed by BTC. Nobody would accept the debt money.
Without spending, the BTC can pass back up the chain of debt. With spending, the BTC to repay the debt must come from elsewhere.
True but once that BTC hits a savings account or the bank doesnt lend it out, Its no longer available to service the Debt contracts payable only in BTC.
