Do you suspect Bitcoin Service providers are using Fractional Reserve banking?

odolvlobo

legendary

Activity: 4522

Merit: 3426

Quote from: RealBitcoin on July 18, 2016, 11:59:48 AM

Quote from: odolvlobo on July 13, 2016, 03:00:48 PM

I expect Bitcoin FRB to be the norm in the future because most people will store their bitcoins in online accounts rather than in their own wallets. That is one of the reasons I don't believe that the value will reach the levels that many people hope for.

But when the ponzi scheme deflates ,there wont be a bitcoin central bank to do QE to save them, so bitcoin wont suffer the hyperinflation fate like fiat money does, don't worry Wink

Only those holding their money with the scammers will lose it, those that hold their own money wont be affected.

Markets can remain irrational longer than you can remain solvent -- anonymous

RealBitcoin

hero member

Activity: 854

Merit: 1009

JAYCE DESIGNS - http://bit.ly/1tmgIwK

Quote from: odolvlobo on July 13, 2016, 03:00:48 PM

I expect Bitcoin FRB to be the norm in the future because most people will store their bitcoins in online accounts rather than in their own wallets. That is one of the reasons I don't believe that the value will reach the levels that many people hope for.

But when the ponzi scheme deflates ,there wont be a bitcoin central bank to do QE to save them, so bitcoin wont suffer the hyperinflation fate like fiat money does, don't worry Wink

Only those holding their money with the scammers will lose it, those that hold their own money wont be affected.

RealBitcoin

hero member

Activity: 854

Merit: 1009

JAYCE DESIGNS - http://bit.ly/1tmgIwK

Of course they do, fractional reserve system is the most succesful scam on the planet. Do you think bitcoin services are so honest that they dont participate in it?

philipma1957

legendary

Activity: 4326

Merit: 8950

'The right to privacy matters'

Quote from: poncom on July 13, 2016, 07:46:03 PM

Quote from: franky1 on July 13, 2016, 02:55:57 PM

service providers.. like bitpay and other retail/consumer direct swaps.. no..

service providers.. like exchanges with bitcoins altcoins and fiat.. yes..

exchanges "orderbooks" are not directly linked to funds stored on private keys. which allows them to make 'ghost' orders. and when things go bad that they have made a loss on the ghost orders because theres not enough coin or fiat to fill the withdrawals. they cry out the standard "we have been hacked" mantra. and then go into bankruptsy

MtGox springs to mind as a good example of a Fractional Reserve banking exchange crying out the standard "we've been hacked" mantra. I think some exchanges are legit, but others are using Fractional Reserve systems.

Bitpay's a service provider, it covered up its hack for over a year and might have used Fractional Reserve banking afterwards.

they are the son of BITS which was also 'hacked' so they did it twice and they owe me stolen coin (.39btc) lost after the first hack when they were BITS may they suffer pineal cancer and die a slow painful death from it.

BTW that is not cancer of the penis that I want them to die from.

tobacco123

sr. member

Activity: 552

Merit: 250

Some sort of Fractional Reserve banking is definitely in place. This is a good way to make money since most of these Service Providers are actually giving "free" services.

poncom

sr. member

Activity: 318

Merit: 250

Quote from: franky1 on July 13, 2016, 02:55:57 PM

service providers.. like bitpay and other retail/consumer direct swaps.. no..

service providers.. like exchanges with bitcoins altcoins and fiat.. yes..

exchanges "orderbooks" are not directly linked to funds stored on private keys. which allows them to make 'ghost' orders. and when things go bad that they have made a loss on the ghost orders because theres not enough coin or fiat to fill the withdrawals. they cry out the standard "we have been hacked" mantra. and then go into bankruptsy

MtGox springs to mind as a good example of a Fractional Reserve banking exchange crying out the standard "we've been hacked" mantra. I think some exchanges are legit, but others are using Fractional Reserve systems.

Bitpay's a service provider, it covered up its hack for over a year and might have used Fractional Reserve banking afterwards.

7788bitcoin

legendary

Activity: 2282

Merit: 1023

https://en.wikipedia.org/wiki/Fractional-reserve_banking

I think this is something that they may be considering or may have already established- this require a complex process/system to manage. After all, service provider such as XAPO and Coinbase are acting pretty much like banks.

countryfree

legendary

Activity: 3066

Merit: 1047

Your country may be your worst enemy

It would be difficult and risky. There's a lot of ups and downs and many lots of people selling or buying all at the same time. Some exchange may try to do it, but I doubt it could do it for long.

odolvlobo

legendary

Activity: 4522

Merit: 3426

I expect Bitcoin FRB to be the norm in the future because most people will store their bitcoins in online accounts rather than in their own wallets. That is one of the reasons I don't believe that the value will reach the levels that many people hope for.

RodeoX

legendary

Activity: 3066

Merit: 1147

The revolution will be monetized!

My guess is that somebody somewhere surely is or will.

franky1

legendary

Activity: 4424

Merit: 4794

service providers.. like bitpay and other retail/consumer direct swaps.. no..

service providers.. like exchanges with bitcoins altcoins and fiat.. yes..

exchanges "orderbooks" are not directly linked to funds stored on private keys. which allows them to make 'ghost' orders. and when things go bad that they have made a loss on the ghost orders because theres not enough coin or fiat to fill the withdrawals. they cry out the standard "we have been hacked" mantra. and then go into bankruptsy

Quantus

legendary

Activity: 883

Merit: 1005

Do you suspect Bitcoin Service providers are using Fractional Reserve banking?

Topic: Do you suspect Bitcoin Service providers are using Fractional Reserve banking? (Read 560 times)