"Actually there is a very good reason for Bitcoin-backed banks to exist, issuing their own digital cash currency, redeemable for bitcoins. Bitcoin itself cannot scale to have every single financial transaction in the world be broadcast to everyone and included in the block chain. There needs to be a secondary level of payment systems which is lighter weight and more efficient. Likewise, the time needed for Bitcoin transactions to finalize will be impractical for medium to large value purchases.
Bitcoin backed banks will solve these problems. They can work like banks did before nationalization of currency. Different banks can have different policies, some more aggressive, some more conservative. Some would be fractional reserve while others may be 100% Bitcoin backed. Interest rates may vary. Cash from some banks may trade at a discount to that from others.
George Selgin has worked out the theory of competitive free banking in detail, and he argues that such a system would be stable, inflation resistant and self-regulating.
I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash. Most Bitcoin transactions will occur between banks, to settle net transfers. Bitcoin transactions by private individuals will be as rare as... well, as Bitcoin based purchases are today."
bitcoin is just a meme at this point. its really needs to die for crypto to become anything other than neet internet bux
Carter Green
t. december buyer
Chase Jones
Dumb and uninformed. Why do i need a bank to give me a shitcoin when i can just hold fucking bitcoin myself
>BOOM theory destoyed Fuck banks
Brayden Fisher
Bitcoin lives long enough to become the thing it was fighting against. How poetic!
Christopher Garcia
There's no need for banks to issue currency redeemable for bitcoins when anyone can create an ERC20 token or copy and paste Bitcoin's source code in 10 minutes. The free market will decide which coins are valuable and which aren't. Dogecoin is there to prove my point. Banks don't have to be the issuers of money, anyone can be.
Ive been saying this since 2012. Btc will form the backbone of the global economy but i doubt the masses will use it for payments EVER. Only newfags in reddit seem to think adoption means fucking starbucks takes it. Do not listen to these people they are 100% wrong and dint understand btc and its threat to the status quo. Of the reserve currency.
Landon Brown
Where do you see btc price in a couple years?
Juan Parker
>Bitcoin … serves as a reserve currency for banks that issue their own digital cash GOD imagine the REEEs of anons who don’t even have a single bitcoin when this comes to pass
why would i fud bitcoin after buying in at the top dumbass?
Asher White
lol this. banksters predicted it would come to this anyway, people would argue 'muh decentralization' and 'fuk the establishment' but in the end go back to that
Ayden Murphy
when bcashies say csw is Satoshi and bcash is his true vision but Hal (may he RIP) thinks this Lmao
Jose Roberts
>>Dumb and uninformed.
>Satoshi
>dumb
>uninformed
fucking nigger
Sebastian Moore
do it and >The free market will decide which coins are valuable and which aren't
Anthony Ward
I think up maybe ~$50,000 but who the hell knows I don't think we will know if it can succeed until a few more halvings happen maybe 10 years from now we will have enough information to predict what will happen if adoption and technology improvements create enough of an ecosystem to get enough tx fees to replace the block reward subsidy we're golden
Jace Mitchell
this is what Aurora Labs, the guys behind IDEX are working on. at least is one of their long term goals, and I think even Selgin is an advisor, not sure tho but they know him
Angel Anderson
>The absolute state of Jow Forums
Ian Myers
why would anyone buy bitcoon based on a 3rd party proticol? thats basically just buying alts
Jackson Lopez
The 3rd parties will need to have transparent accounting to prove they hold the funds they say they have
If you dont own at least 1 BTC at this point I dont know what the fuck is wrong with people. Its pretty clear where this is headed.
Jonathan Stewart
The main difference between BTC and gold, though, is that BTC can actually be held and spent, and eventually scaled. Making a new inflatable currency backed by bitcoin doesn't really make much sense, since bitcoin is infinitely divisible. Why not just start counting bitcoin in mBTC, or bits, or even sats if we reach that point? There's really no point in making a non-inflationary currency inflationary if that currency can be transacted in easily.
Hudson Davis
fiat gateway
William Clark
Actually what happened was the post went way over your head
