Bitcoin will end fractional reserve banking. Bitcoin will replace the fiat banking system. What you need to do is research and read up on what is sound money and how sound money works. You need to understand how the old system works in order to understand how Bitcoin works.

Replies (2)

Jean-David Bar's avatar
Jean-David Bar 10 months ago
I do read a lot about it. Still, I didn't find any direct "law" that says "sound money ends fractional reserve" nad why. If you have any precise resource to share about this, I would be happy to read even more ;-)
Jean-David Bar's avatar
Jean-David Bar 10 months ago
Of course I understand that if everybody use only sound money, fractional reserve could not exist. But my point is that even if bitcoin becomes the main currency of the world, it might be the reserve currency, just like gold has been. So more precisely, what would prevent bitcoin to become a reserve currency ? If at some point it is hard to get, because it is limited, most people may want to use alternative currencies, and we would be back to the same cycle again. I do not see anything preventing it from happening.