I really don't understand some libertarians' PoV on fractional reserve banking.
Bill deposits 20 Bitcoins with Jon. Bill has invested the coins in Jon, but clearly no longer has the coins. Only Jon has the coins.
Jon lends Josef 18 coins, reserving 10% (this is the fractional reserve part) to pay those who may want to withdraw their funds.
No coins are created. If anything, due to reserve requirements, coins have essentially been destroyed as they must sit around doing nothing.
Josef has 18 coins, Jon has 2 coins, Bill has no coins. The problem is the conflation of "demand accounts" (e.g. checking), where the depositor is led to expect that the money deposited with the bank will be available for immediate use on request, and "time accounts" (e.g. CDs), where withdrawal before the maturity date is subject to the bank's discretion. Savings accounts fall somewhere in between, but on the whole are closer to checking accounts than CDs. With a time deposit you are explicitly making a loan to the bank, accepting the temporary loss of use and risk of default in exchange for interest. Few libertarians seem to have a problem with this arrangement. The problem is with interest-bearing demand accounts, where the depositor has a reasonable expectation that the deposits are really his/hers, not the bank's, and yet the only way the account can earn interest (profitably) is for the bank to lend the money out to others. It's true that Jon and Josef control the coins, and Bill does not; however, it is not clear that Bill really intended to invest the coins (and risk illiquidity and default) rather than merely deposit them for safe-keeping, whatever the bank's fine print may say. Based on Bill's understanding of the arrangement, he still owns the original 20 coins. When he considers the amount he is willing to spend, he is going to base that on having 20 coins, not just the two held in reserve. There may only be 20 real coins, but when you add up what people believe they have, you find that economic calculation is based on there being 28--right up until Bill tries to withdraw his 20 coins and finds he really only has two. The difference between the written terms permitting the bank to refuse withdrawal for lack of reserves and the common understanding that one's money in a checking or savings account is available on demand can arguably be considered a case for fraud on the part of the bank, though there is certainly blame enough to go around. Anyway, that's the argument as I understand it. I'm more of a free-banker myself, though I do feel that a low reserve ratio would be impractical given free competition in banking; any bank with lower-than-average reserves for its demand accounts would be the subject of targeted bank runs initiated by its competitors. Thanks for writing that. I've been struggling with that problem for a while -- how explicit should I make it that I'd simply be unable to cover large early withdrawals. Talked with Meni about it. Explicitly defining maximum withdrawals per day seems like a solution which is up-front, honest, and solves the problem. With the trust issues involving Bitcoin businesses, I'm not sure we could get away with saying "we'll cover early CD withdrawals at our discretion." I think of withdrawals working very similar to how ISP bandwidth works. "Under normal conditions" you should get advertised speed, and usually a bit better than advertised. However, if people were permitted truly unlimited bandwidth, there would be many short bursts "clogging" the network instead of slower, consistent speeds. Having better-than-necessary infrastructure allows customers to use the bandwidth they want when they want it, but the service has to be undersold, with the better-than-advertised bandwidth, in a sense, being wasted as a reserve/buffer. Then, of course, there's fraud in advertising higher speeds but often being unable to deliver due to inadequate infrastructure. It'll be interesting to see how Bitcoin lending develops if the value picks up enough to attract major players who'd have no problem plunking down hundreds of thousands of USD to hire attorneys, offer services like "bitcoin debit (perhaps even credit!) cards," and have a large enough transaction volume to permit on-demand withdrawals they can almost always cover by simply keeping something like 10% of deposits in reserves. It would also be utterly alien to have competitors aggressive and hostile enough to try shoving out other financial institutions by trying to cause a bank run. I think the most "hostile" action taking place now is when someone covers a good-looking loan in full without offering to split it.  |
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They will deteriorate at any temperature. They will deteriorate faster when hotter and when running @ a higher voltage.
Your temps are not unreasonably high, but I think many would start feeling a bit uncomfortable at those temps.
Thanks for the reply, it seems like one section of the GPU is always higher than the other parts (temp #2) any idea as to why that is happening? Im also looking into adding another fan to my case as i only have 2 fans in the case atm. They are measuring three different points in the GPU. It's measuring at three different key locations on the card. Beyond that, figuring out which sensor # goes to which part probably varies with manufacturer and architecture -- might be able to find it in the owner's manual? DeathAndTaxes might know -- he seems to know everything. ETA: and yes, dropping mem speeds will decrease heat without impacting mining performance. Don't drop it below 300MHz. Sometimes, lowering mem speeds also increases mining performance a minor amount. If you're gaming, though, you won't want your mem speed underclocked so dramatically. |
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They will deteriorate at any temperature. They will deteriorate faster when hotter and when running @ a higher voltage.
Your temps are not unreasonably high, but I think many would start feeling a bit uncomfortable at those temps.
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I can transfer the US$ on MtGox to any bank but not to another MtGox member, can't understand why.
https://mtgox.com/trade/funding-options -> Withdraw Options -> USD as redeemable code -> email code to other user. Instantly transfers when receiver pastes code into MtGox. |
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I really don't understand some libertarians' PoV on fractional reserve banking.
Bill deposits 20 Bitcoins with Jon. Bill has invested the coins in Jon, but clearly no longer has the coins. Only Jon has the coins.
Jon lends Josef 18 coins, reserving 10% (this is the fractional reserve part) to pay those who may want to withdraw their funds.
No coins are created. If anything, due to reserve requirements, coins have essentially been destroyed as they must sit around doing nothing.
Josef has 18 coins, Jon has 2 coins, Bill has no coins.
Bill deposits 20 dollars with Bank of America. Bank of American now loans out $18. Joe deposits $18 at BoB. BoB loans out $16.20, and so on. That is one side of the ledger. Now add up the liabilities to match the assets and you find they match. Stopping at an arbitrary point (7 deposits and seven loans) Going out = Loans of 18, 16.20, 14.58, 13.12, 11.81, 10.63, 9.57 = 93.91 Deposits coming in 20,18, 16.20, 14.58, 13.12, 11.81, 10.63 = 104.34 Net position = 10.43 (i.e. the reserve which balances it up with the last loan of 9.57 to get the original 20) That's even assuming Joe would deposit at BoB. Fractional reserve banking (which is a government regulation, not some scheme made up by banks to create more money) lowers profit margins in loan arbitrage, which is the only reason multiple transactions would occur. Joe deposits $20 @ BAC. BAC pays Joe .5% APR in interest and pays the equivalent of 3.5% APR for overhead in rendering services to Joe like checking, online banking, ATM cards, etc. BAC then effectively pays $.80 to keep $20 for a year. BAC needs to keep $2 in reserves due to reserve requirements, meaning they only get $18 to make more than $.80 on. To make a profit, BAC needs to lend that $18 @ >4.5%, so let's say they lend to Joe @ 8% APR. Will Joe deposit that money at a bank? No, he'd be losing money as the bank only pays ~.5% APR in interest. Joe really needs to invest that money in a productive venture at that point in most typical scenarios, and BAC doesn't keep the $18 they loan out, it goes to Joe. There's no money being created, and no reason to keep re-lending to other banks for purpose other than arbitrage (which can't just keep happening forever) -- reserve requirements take money OUT of circulation, not put "out of thin air" money into circulation. |
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Private banks do create their own money via collateral (mortgages, cars, etc.) and fractional reserve.
I really don't understand some libertarians' PoV on fractional reserve banking. Bill deposits 20 Bitcoins with Jon. Bill has invested the coins in Jon, but clearly no longer has the coins. Only Jon has the coins. Jon lends Josef 18 coins, reserving 10% (this is the fractional reserve part) to pay those who may want to withdraw their funds. No coins are created. If anything, due to reserve requirements, coins have essentially been destroyed as they must sit around doing nothing. Josef has 18 coins, Jon has 2 coins, Bill has no coins. |
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what would the price be on a house in that area with those specs...nice chunk of land!
$88,500 -- I think I can get away with a bid <$80, though. It's been on the market a looooong time, and I imagine banks must hate sitting on property. |
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Following the dendrogram on blockchain.info, it looks like the money went
to a pool of bitcoin worth around 25000 ... not the first malfeasance then.
Also, seems like the thief is in the process of laundering the whole thing.
FYI:
The Bitcoin Faucet bitcoind's are both running on a Linode VPS, which was mysteriously restarted 14 hours ago. The ~4 bitcoins in the main-net Faucet's wallet were stolen, also; I'll shutdown the Faucet website, do NOT donate any coins to the Faucet donation address, it is controlled by the thief.
This is extremely disturbing. Wonder who else was stolen from. Sounds like it was well-planned. |
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Are you moving here --V  Ideally:  Short sale, middle of nowhere (been on the market for well over a year), great bargain. 30 acres of woodlands, roads out are all private in a forest with sturdy gates barring unwanted visitors. Electric lines are all underground, has a wood boiler, shed, garage, everything's within 6 years old, so all the outlets are nice and grounded, the pumps shouldn't fail for a good while, and given it's a barbie house, it should be pretty low-maintenance. |
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Account less than a month old, most posts are one sentence, no apparent transactions.
No.
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Stuff you can't buy or easily find using USD. Artisan-crafted by community members or at least quality stuff bought local, then distributed.
Leather wallets, coffee beans, alpaca socks, custom-made jewelry, Fibonacci table cloths, ornate wooden bowls, home-crafted assault rifles, dehydrated weasel dicks, honey, and many varieties of cheeses!
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Fontina, camembert? My daughter ain't old enough to fulfill her role as community cheese-maker for a good few years.
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Awesome! I hope your buyer has BTC.
If someone did take you up on this, would you keep it off the books?
I keep spreadsheets on everything. Not trying to imply anything shady, it might bring up some interesting legal/tax issues if you were to try to officially accept it as part of the contract...or maybe not. I was just curious as to how that would go. Honestly, I have no idea how it would work out, but the amount of potential tax loss is probably no more than $50 (2% of sale price between city & state, federal taxes would be easily covered by deductibles) between all involved governments if someone paid the max $3000 I'm willing to take in BTC. If the state gov't became aware of what's happened and wish to press their claim, it may give interesting results. The realtor's the one who'd really be getting screwed out of money (nearly $200), but I'm fine with that given how much he's charging. |
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Awesome! I hope your buyer has BTC.
If someone did take you up on this, would you keep it off the books?
I keep spreadsheets on everything. |
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Has no one had their wallet.dat stolen? Really? This is the most common cause of Bitcoin paranoia, but it wouldn't surprise me if it turns out to be extremely rare.
It only appears to happen to people who hold others' money, like A1Bitcoin and MyBitcoin. Makes sense, but I will post this in a snarky manner, anyway. |
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There are other options than going to court, just saying.
I never understood why people come here to scam. Most of the people involved in BTC are smart enough to do significant damage if they wanted to.
Yes, court is a last resort, and not something I'm very interested in, though I'd be interested to hear what a judge would have to say on the matter. |
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Features of the house:
*Sub-flooring, toilet, paint, outlets, vents, tiling personally replaced by a Bitcoin enthusiast. I touched them. You can touch them, too!
*You can run at least 6 5850s on one circuit without problem.
*Worried the house won't have character? I didn't bother wiping the outside of a window upstairs where the mining rigs were set up. Be awe-struck by the ring of dust brought in by an intake fan which blew air over REAL Bitcoin mining components!
*Worried your neighbors won't like you? We had sex outside, did lots of remodeling and garbage-tossing during late-night while they were sleeping -- how bad could you be?!
*Many neighbors are old. As told by our recently-immigrated Ukrainian painters, "your neighborhood is filled with many older white people. It's much quieter than some places we go where there are many young blacks and you can hear them arguing very loudly, you know? I like these kinds of places better." Later, he asked which country provides our bananas. (P.S. One of the two connecting neighbors migrate south for Winter!)
*One side of hedges is minimally trimmed by a neighbor. That means you only have to trim 2.5x your share of hedges!
*We hid a large quantity of pre-82 pennies somewhere in the house if you're in the mood for adventure!
*Basement no longer flooded with human feces! Enjoy even more peace-of-mind knowing it won't happen again for a long, long time as the septic pipe from house to city line was replaced a couple months ago!
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I'll also try calling his dad on the 7th if no date and means of repayment is given. DI apparently recovered enough from his car crash to buy tickets to a video game conference a couple days ago. Very irritated.
If you have loans out, goods purchased, or donations to DI, please PM me if I haven't already asked for permission to represent you on the letter I'll send (I'll give you a copy of the draft). If it isn't a loan I've already listed in the (code) tags, please tell me the BTC amount of goods you purchased, when you purchased, and what the BTC/USD exchange rate was at the time (if >+-$.20 from $6) -- I do need evidence that transaction took place. I am also claiming authorization to collect all BTC (or USD equivalent) for those I represent. Any collections will be repaid proportionally to everyone I'm representing. If you do not give me authorization, it will be entirely on you to collect repayment. I will NOT negotiate settlements until I have shared any offer given by the defaulter with everyone involved.
Will consider hiring a proper UK attorney if no favorable response is received by the beginning of April (ETA: Already emailed the UK BTC lawyer to ask how this would play out). I intend for these potential costs (we'd obviously request attorney fees and court costs to be included in judgment) to be split proportionally among those damaged. That is, if 1000BTC of damages are sought and you hold 100BTC of that, you would be responsible for 10% of all potential costs were we to receive unfavorable judgment.
ETA: I believe I now have all six other lenders' permission. If you never gave permission, PM me!
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