7 votes

More Bitcoin Competition: The Ron Paul Coin

Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.


Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
Rand Paul 2016

Veggie Coin!

Instead of computer automated numbers this plan uses raw veggies as the trading tool.

Smaulgld is a bitcion troll

Smaulgld is clueless on bitcoin and only posts on this site when he has a negative slant.

The Red Coats are coming!

Smaulgld is an anti-bitcoin troll with an agenda

and is outnumbered by the many bitcoin trolls on this site with a completely different agenda.

Is it possible to do fractional reserve lending in bitcoin?

You can have a moneylender in bitcoin but can you have fractional reserve moneylending?

no fractoinal reserve lending in Bitcoin is not possible

Without the ability to create fiat our of thin air, a fractional reserve banking system would not be possible, as a bank run would wipe it out without any chance of a bailout by a centralized baking cartel with a printing press.

The Red Coats are coming!

Isn't it?

If a bitcoin bank pays interest on savings accounts by using the bitcoins on deposit to make loans, that would be fractional reserve banking. If all the depositors wanted their bitcoins back at the same time the bank wouldn't be able to do it. But I don't think that bitcoin banks that make loans and offer savings accounts that pay interest are going to be in high demand any time soon.

The more immediate way that the crypto money supply can increase is if competing cryptos like Litecoin become easily interchangeable with bitcoin. It's analogous to what the scarcity of gold would mean, if it were easy to create new precious metals essentially equivalent to gold, with as much supply as desired. Gold itself wouldn't be any less scarce but what would that mean if there are numerous "alt golds" that are indistinguishable from gold?