So eventually, in theory, a group of private banks can build a fractional reserve banking system as a 2nd layer Lightning Network on top of Bitcoin.
The banks on the lightning network is a step in this direction and who's to say that fake BTC won't be pumped into the
off-chain private ledgers !
https://www.youtube.com/watch?v=UYHFrf5ci_g
Pump-en-dump by bankers using Bitcoin is not something that can be stopped and clearly the miners have no loyalty towards
users so my guess is that it will all crash anyway given all the gambling and naked speculation.
Sorry, I was not talking about the Lightning Network. Lightning has coins backed and locked down to the last satoshi. It will never be the same as a fractional reserve banking system.
I was thinking about how the biggest banks could create their own "2nd banking layer" on top of Bitcoin but operates as a fractional reserve banking system. No need to FUD.