If you deposit your hard earned Bitcoins into a Bank you have lent your Bitcoins to a third party.
You somehow ignore that people already do that. Poloniex and other exchanges allow you to send your Bitcoin there and lend it, hoping that you'll get your money back and some extra.
I do not ignore the fact that people can and do lend their Bitcoins to exchanges, Poloniex, strangers, friends, family, etc. In fact I have Bitcoins on account at exchanges and do on occasion lend them out to margin traders. You are correct that people can and do lend Bitcoins and there is actually nothing wrong with that. My issue is with deposit accounts at Banks, specifically government/centrally controlled banks.
The difference would be that banks are (unfortunately) privileged by the governments and (fortunately) the chance they'll steal your money would be smaller than at other businesses (exchanges).
Might be true until the whole fiat currency house of cards begins to crumble. Then we will see how safe your funds are from confiscation, increased fees and across the board deposit "taxes".
Then the fact somebody keeps an amount of Bitcoin at a business (in this case a bank) doesn't exclude the fact the same person keeps some in cold storage, some on local wallet, some at exchanges/trading and so on. People that want to earn money will try to make them work.
Sure.
While you are right that keeping money on another businesses is wrong, you forgot that this already happens. The difference is that they are not called infamously "banks".
Lending in and of itself is not wrong. People need to realize that is what they are doing, that is all. They need to know the difference between possessing Bitcoins and lending them. Most people do not realize the difference until they loose their Bitcoins in a exchange or business collapse. This is one of the beautiful things about Bitcoins. It teaches very valuable lessons.
While you are right that working with "promise to pay", you didn't think that bigger exchanges can already do that. Do you really think that all of them are nice an keep all the money in cold storage instead of "make the money work" for them?
I do not think you understood what I said. The danger here is not the lending of Bitcoins. The danger here is the banks creating money out of thin air
based on Bitcoins. If Bitcoin deposits become common place then the next step is to create Bitcoin checks and then Bitcoin notes. Once these Bitcoin notes are generally accepted as payment the banks are once again totally in charge, can inflate, can deflate, can control the value of these Bitcoin notes. There can be as many Bitcoin notes as they want. All "backed" by the pool of actual Bitcoins. The actual pool of 21 million real Bitcoins will eventually "back" a huge number of Bitcoin notes. Once these Bitcoin notes are generally accepted as money then, for the "good of the system", the value of these Bitcoin notes will be separated from the value of the actual Bitcoins and the value of them can be controlled by a central Bitcoin Bank.
Does this sound familiar to you?
So I find your logic flawed. All the problems you stated, while real, already happen even without the banks getting a share of it.
But I will not call you names.
I will not call you names either. I call the people who glibly and blindly and ignorantly say "sure, there is no harm in giving my Bitcoins to the banking system and accepting Bitcoin notes instead" sheep because that is what they are. You obviously are a thinking person, not a signature spamming parasite on this forum.
Finally, did you miss this part of my statement:
it is inevitable that Bitcoin substitutes (bitcoin IOUs) will eventually be used for and accepted as payment and that the banking system will recreate a fractional reserve banking system using Bitcoins. This is because most people do not understand the first thing about money, what it is, where it comes from and what purpose it serves
The difference this time around is that those of us who choose not to participate in the bankers schemes will not have to participate. Once Bitcoin substitute notes are generally accepted (basically just another form or paper currency controlled by the government, central bank, and selfish corporate interests) those of us who choose not to participate can always trade them in for real Bitcoins at whatever the Bitcoin note to real Bitcoin exchange rate happens to be.
Show Posts
than a whitepaper. definitely needs a major re-write
