Jean-David Bar's avatar
Jean-David Bar 10 months ago
Same question more precisely : how and why transitioning to a bitcoin standard would make us return to the old system you describes ?

Replies (2)

because the old system was based on the Gold standard which is sound money. and Bitcoin is a sound money system. So the world will run on sound money again. The fiat system which is not sound money will die.
Jean-David Bar's avatar
Jean-David Bar 10 months ago
Thank you. But this would require to end or seriously limit the abbility to use fractionnal reserve. And how would bitcoin do that ? As long as there are major financial institutions with enough trust from people, I see no limit in loans. (Micro)Strategy could one day lend 100x their bitcoin reserve in any new bitcoin-backed coin. Or I am missing something ?