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This is the part many (most?) bitcoiners fail to grok about fractional reserve free banking. The banks keep each other in check.
It's the same picture.
FTFY
Canada had a super successful and stable private banking system in the late 1800s. Totally different than the US system that only allowed banks to operate within a state and notes centrally cleared. In contrast, Canada allowed branch banking across the country. So if you wanted to clear notes, you walked across the street to clear with the other bank, instead of having your bank send the notes to clear in Toronto.
🔥🔥🔥 Somebody has been doing their homework. 😁
Not to name-drop, but an exchange I had with George Selgin about 4 years ago, put me on this trajectory. I also read Larry White’s book on private banking on the success in Scotland.
When #cashu dropped in 2022, I realized that a whole new private micro-banking system could be built. Been on that path ever since with #nostr #safebox
I'm sympathetic to this view, it's not however clear to me whether free banking on top of gold was a solution to the technical limitations of the time and if it would make sense on top of Bitcoin (yes it's slow, but still much much faster and cheaper than transferring gold was)
Are there any more structured opinions on this that anyone knows?
Doin' it right
Eric Voskuil's writing on money & credit is quite good
** Full Reserve Fallacy **
GitHub
Money Taxonomy
Bitcoin Cross-Platform C++ Development Toolkit. Contribute to libbitcoin/libbitcoin-system development by creating an account on GitHub.
GitHub
Pure Bank
Bitcoin Cross-Platform C++ Development Toolkit. Contribute to libbitcoin/libbitcoin-system development by creating an account on GitHub.
GitHub
Savings Relation
Bitcoin Cross-Platform C++ Development Toolkit. Contribute to libbitcoin/libbitcoin-system development by creating an account on GitHub.
GitHub
Full Reserve Fallacy
Bitcoin Cross-Platform C++ Development Toolkit. Contribute to libbitcoin/libbitcoin-system development by creating an account on GitHub.
Keyword searching his twitter is a goldmine as well
It's not true though is it? Banks are too big to fail and get bailed out.
Read Lyn Alden to understand why gold failed and how bitcoin solves those problems.
Gold settlement was too slow, risky, and hard to verify. The telegraph made physical settlement obsolete and centralized gold reserves.
Gold is physical so it is vulnerable to capture by whoever has the biggest guns. The government simply captured the centralized gold reserves and forced everyone onto a fiat standard.
This is what will happen to all the ETFs, exchanges, and treasury companies. Saylor's bitcoin will be the national reserve. History rhymes.
Crony state banking in a nutshell. 🥜󠅓󠅑󠅣󠅘󠅥󠄲󠅟󠄢󠄶󠅤󠅕󠄳󠄺󠅟󠅔󠄸󠅂󠅧󠅓󠅪󠅟󠅦󠄼󠄢󠄡󠅠󠅒󠅞󠅁󠅥󠅒󠅇󠅜󠅥󠅑󠅇󠄺󠅠󠅔󠄸󠄽󠅥󠅉󠄢󠄶󠅪󠅑󠄳󠄩󠄳󠅑󠅈󠅂󠅚󠅒󠄢󠅜󠅥󠅉󠅈󠅆󠅚󠅓󠄢󠄶󠄠󠅉󠅈󠅃󠄲󠅟󠅝󠄶󠅠󠅃󠄱󠄲󠅁󠄲󠅆󠄴󠅧󠅃󠅅󠄶󠄷󠅉󠅈󠄳󠄲󠅠󠄷󠄶󠅘󠄷󠄳󠄲󠅘󠅓󠄣󠅘󠄱󠄽󠅇󠅆󠅚󠄽󠅇󠅆󠅘󠄿󠅇󠄺󠅙󠄽󠄴󠄽󠄤󠅊󠅚󠅉󠅨󠅊󠄴󠅉󠄡󠅊󠅄󠄱󠅩󠄿󠄷󠄽󠄣󠄾󠄷󠅊󠅜󠅊󠅇󠄵󠄡󠅉󠅚󠅛󠄥󠄾󠅪󠄵󠄣󠅊󠅚󠅉󠄥󠄽󠄴󠄽󠅪󠅉󠅄󠅗󠄣󠄽󠅄󠅛󠅪󠄿󠅄󠅉󠅧󠅊󠅇󠄵󠅧󠅉󠄢󠅅󠅧󠄿󠄴󠅅󠅪󠅊󠅇󠅅󠄣󠅉󠅇󠄶󠅚󠅇󠄳󠄵󠄴󠄠󠅘󠄣󠄱󠄡󠄱󠅒󠅝󠅘󠅖󠄵󠄼󠅙󠄹󠄹󠅩󠅒󠅛󠅡󠅢󠄧󠅩󠄨󠄸󠅕󠅆󠅩󠄥󠅃󠅪󠄦󠄺󠅞󠅂󠄲󠄣󠄩󠅨󠅘󠅔󠅩󠅘󠅂󠅘󠅊󠄻󠄾󠅘󠅊󠅆󠅗󠅗󠅠󠄵󠄹󠄳󠅧󠅣󠄡󠅥󠅉󠄢󠅉󠄿󠅓󠄾󠅂󠄴󠄠󠅢󠅂󠅗󠅠󠅧󠄧󠅃󠄢󠄺󠅠󠅒󠄩󠅗󠅏󠄷󠅂󠅧󠅂󠄷󠅟󠄲󠄥󠄦󠅁󠅉󠄺󠅘󠅓󠄡󠅗󠅗󠅕󠅪󠄼󠄱󠄾󠄽󠅥󠅓󠅇󠄾󠄢󠅅󠅞󠄡󠅠󠅖󠄣󠄵󠄺󠄧󠄢󠄾󠅀󠄶󠅂󠄩󠄧󠅉󠅛󠅂󠅤󠅁󠅡󠄻󠄳󠅆󠅛󠄩󠅊󠄡󠄡󠅈󠅔󠅘󠅓󠅜󠅗󠅗󠅚󠄣󠅚󠅇󠅉󠅞󠅃󠄩󠄿󠅏󠄽󠅈󠅟󠅥󠅁󠄳󠄤󠅜󠅣󠅟󠅃󠄶󠄷󠅦󠅝󠅀󠅤󠄳󠅣󠅔󠅁󠄽󠄢󠄧󠅦󠅂󠅔󠅒󠅤󠄦󠅩󠅝󠄱
Yup, read Lyn Alden's book, too. My big takeaway was the impedance mismatch between clearing (telegraph) and settlement (gold) is the root of instability.
Fixed with ecash and bitcoin.
Lightning Network is the telegraph , Cashu is the IOU and Bitcoin is the gold.
This makes me think about @calle's mint auditor
Mint Auditor
But you also need a reputation layer. That's nostr and it's cryptographic keypairs. IMO. Which I'm thinking about more in context of the immutable nature of btc transactions.
I've been trying to grok a relationship between pricing mint credit risk, LN liquidity, and miner revenue.
Exiting a mint incurs fees, and fees are what power LN and the base layer. Miners will ultimately want predictable fee revenue. Are hashrate derivatives the glue that binds them together?
Yup. I’m hoping that @Pip the WoT guy and @Nathan Day can crack the reputation, attestation problem.
My sole focus is access to funds and records.
You certainly will. I have faith in you. 😁
Thanks, great points! I'm familiar with Lyn's work, which I find has a lot of explanatory power.
I think free banking on top of Bitcoin might emerge and we might find out that it works pretty well since falling back to self custody is so much easier with Bitcoin than wiith gold.
As for Saylor's stack becoming the government's, interesting take
@Pip the WoT guy and I yet to connect directly. This needs remedying!
Yeah check out what BlockSpaces does
I would be happy to learn more about your ideas sir. Want to message on Signal?
Sure! Just DM-ed you my profile.
great project! <3 calle 🐐
Nailed it!
Imagine a proxy mining pool that operates as a community ecash mint and mines up lightning liquidity from block rewards.
Package it up as a self-hostable binary and suddenly anyone on earth (or off it) with access to electrical generation capacity can bootstrap a local economy from nothing.
This is the future I want. A more free and fair world for my kids' kids.