The Daily Bitcoin 4/9/11

[Akarbb]

http://thedailybitcoin.blogspot.com/2011/04/to-answer-question.html

Only because I keep seeing it. 

Note: if I got some of the reasons wrong, I got my information from the various forums so feel free to correct me or add more information.

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[kiba]

That's fractional reserve banking.

[Akarbb]

That's fractional reserve banking.

Agreed, and that's how nearly all modern banks operate.

[tomcollins]

That's fractional reserve banking.

Not necessarily.  There is such a thing as time deposits.

[FooDSt4mP]

That's fractional reserve banking.

Not necessarily.  There is such a thing as time deposits.

Barely:

Basic Certificate Rates


Minimum Balance Requirement: $500

3-5 Month APY: .25% Dividend Rate: .25%
6-11 Month APY: .25% Dividend Rate: .25%
12 Month APY: .50% Dividend Rate: .50%

Basic Certificate Rates


Minimum Balance Requirement: $1,500

15 Month APY: .75% Dividend Rate: .75%
24 Month APY: .75% Dividend Rate: .75%
48 Month APY: 1.50% Dividend Rate: 1.49%
60 Month APY: 1.75% Dividend Rate: 1.74%

Not exactly out pacing inflation.

[tomcollins]

That's fractional reserve banking.

Not necessarily.  There is such a thing as time deposits.

Barely:

Basic Certificate Rates


Minimum Balance Requirement: $500

3-5 Month APY: .25% Dividend Rate: .25%
6-11 Month APY: .25% Dividend Rate: .25%
12 Month APY: .50% Dividend Rate: .50%

Basic Certificate Rates


Minimum Balance Requirement: $1,500

15 Month APY: .75% Dividend Rate: .75%
24 Month APY: .75% Dividend Rate: .75%
48 Month APY: 1.50% Dividend Rate: 1.49%
60 Month APY: 1.75% Dividend Rate: 1.74%

Not exactly out pacing inflation.

What does outpacing inflation have to do with anything?  Yes, it's hard to outpace inflation when other people get to print money for free.  I'm talking about BTC though.

[FooDSt4mP]

That's fractional reserve banking.

Not necessarily.  There is such a thing as time deposits.

Barely:

Basic Certificate Rates


Minimum Balance Requirement: $500

3-5 Month APY: .25% Dividend Rate: .25%
6-11 Month APY: .25% Dividend Rate: .25%
12 Month APY: .50% Dividend Rate: .50%

Basic Certificate Rates


Minimum Balance Requirement: $1,500

15 Month APY: .75% Dividend Rate: .75%
24 Month APY: .75% Dividend Rate: .75%
48 Month APY: 1.50% Dividend Rate: 1.49%
60 Month APY: 1.75% Dividend Rate: 1.74%

Not exactly out pacing inflation.

What does outpacing inflation have to do with anything?  Yes, it's hard to outpace inflation when other people get to print money for free.  I'm talking about BTC though.

Sorry, I mistook your comment as pointing out another function of the existing banking system.  I took your "not necessarily" as referring to the previous comment about fractional reserve banking.  A time deposit will have the same problems as loans in the BTC economy.  It really is the same thing, just from the lender's point of view.  Basically, it we want to participate in loans, we have to abandon anonymity.  That's not that big an issue to most people, so I think we will see this kind of banking begin to happen as the economy grows.