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Title: the way i see things Post by: gmak on April 07, 2013, 07:02:10 AM Im new to the concept of BITCOINS and i like it.
we are currently passing through worldwide economic turmoil created by various entities for various reasons - as a result, in my eyes the banking system in place has reached a point were one comes to ask the following questions, -were the banks not created as a service/faculity to safegaurd savings$? -how can the banks - fund missmanagement - result in the tapping of ones savings$ ? no security in place to monitor this? the concept of bitcoin - decentralized banking - capped 'inflation' - ect.... sounds like something missing in the world right now! i'm sure it needs a lot of work to be developed and to implement the requried security in place but i decided to support and endorse this movement but investing $ i can afford to such to endorse the movement! Hello everybody -G Title: Re: the way i see things Post by: Foxpup on April 07, 2013, 08:10:08 AM were the banks not created as a service/faculity to safegaurd savings$? No. Or if they were in the past, they certainly aren't today. Banks exist to provide loans so that people can pay for things they don't have the cash for. They do this by taking your deposit, lending most of it out to other people, charging those people interest, then passing a portion of that interest on to you and keeping the rest as profit. If you've ever wondered exactly how a savings account earns interest (the money can't just appear out of thin air, after all), now you know.how can the banks - fund missmanagement - result in the tapping of ones savings$ ? no security in place to monitor this? Obviously, this system (https://en.wikipedia.org/wiki/Fractional_reserve_banking) only works if the loans are repaid before people try to withdraw their money. If too many people default on their debts, or too many people withdraw their money, hilarity ensues (https://en.wikipedia.org/wiki/Bank_run). |