Hacker News Reader

But the current market cap of cryptocurrency in gold bars or cheeseburgers is higher than the current market cap of US dollars in gold bars or cheeseburgers, right?

View on HN

No, because the post only counts cash in circulation, and not USD in bank accounts.

Which is comparing like with like, isn't it? The USD in bank accounts is predominantly borrowed money, i.e. fractional reserve banking. There is more in bank accounts because Alice has $100 on deposit which the bank lends to Bob and credits Bob's account with $100, so now there is $200 in bank accounts but still only $100 in the vault.

Now I want to know if there is anybody doing fractional reserve lending in Bitcoin. Because if that was allowed anywhere it would erode its status as a deflationary currency and reinstitute the power of central banks to create the currency in the form of credits denominated in it at financial institutions.

don't think so

would likely just end a run and collapse of that "lender"

most "lenders" are doing way over-collateralized loans

Reply on news.ycombinator.com