Questions tagged [fractional-reserve]
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How would interest and fractional reserve banking work in a limited money supply?
Suppose Bitcoin lenders (banks, creditors, investors) issue loans with interest. As the total supply of bitcoins approaches the 21M ceiling, the total amount owed in outstanding interest will exceed the money supply.
This is the same as existing…
Andrew Vit
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How can I find out if an e-wallet service uses a fractional reserve system?
A comment on this answer pointed out that the total amount of bitcoins in circulation could appear to go above the limit of 21m if wallet services use a fractional reserve system. However, in that scenario you actually no longer have bitcoins -…
Highly Irregular
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Does a segwit based side chain like the lightning network allow for fractional reserve?
I'm confused.
I've watched the video The Lightning Network Explained (Litecoin/Bitcoin), and read the following comments by Craig Wright:
This occurs because schemes such as segregated witness allow for the
introduction of fractional reserve…
CoderBrien
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Can Ripple gateways operate as fully transparent fractional reserve banks?
Any Ripple gateway that establishes a solid reputation will be tempted to switch to fractional reserve issuance of its own IOUs to increase leverage (which is exactly what the existing comercial banks do).
Question:
Can Ripple gateways' accounting…
Alex Kravets
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Which Bitcoin exchanges publish proof of reserves?
I am tired of fractional reserve exchanges continuing to run with account holders eventually holding the bag.
Which exchanges publish proof of reserves.
Real time proof with blockchain addresses would be best, but audited reports from a tech savvy…
Jamal Wilson
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What are the advantages of sharing money in hosted e-wallet services?
I was a little bit shocked to learn that many (if not all) hosted e-Wallet providers combine their customers money in the hosts account, instead of just providing a service for easy access and storing of the users wallet data. This carries over many…
Dr. Hans-Peter Störr
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How can loans work with bitcoin?
Before answering this question please go through this scenario
Let's assume that we have now become a bitcoin-only economy and nearly all bitcoins have been mined. Now, someone wants to do business and he needs bitcoin loan, which a lender will…
Manish Arora
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Measuring total amount of Bitcoin in circulation
Since fractional reserve banking where money is created by lending is possible with Bitcoin is there a way it can be measured to give a total amount of money in the system? Such a measurement would actually reveal the value of money multiplier which…
Kozuch
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How can you operate a fractional reserve e-wallet?
There are topics about the possibility of e-wallet providers operating like fractional reserve banking. How it can be done in theory and practice? Did it ever happen on any meaningful way in Bitcoin's short history?
Edit: does this practice involve…
superuser
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Do centralized exchanges misrepresent their Bitcoin holdings?
For example, would an exchange of Bitcoin hold accounts for 100,000 customers, and they collective have 8000 bitcoins, but the exchange itself does not hold 8000 bitcoin, but only 1600 for customers to redeem (to transfer to their own wallet if they…
nonopolarity
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