It's not a matter of belief at all. Fractional Reserve Banking works more or less exactly as described in the first video. The question is whether or not FRB is inherently "bad" or not. Advocates of the Gold Standard should remember that there are disadvantages to that model as well and there were some sound reasons it was given up. (Such as artificially capping economic growth based solely on the supply of currency.)
A FRB model coupled with Keynesian policies has been successful at minimizing the effects of major recessions and depressions. I find the Fractional Reserve system to be quite disconcerting, but I'm not certain that it's necessarily doomed for collapse.
Bitcoin is interesting precisely because it's neither a fiat currency nor a commodity. It's something new...