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Sure, but the point is that in bitcoin world big money doesn't automatically mean more money, because you can't print and loan bitcoins. That's pretty simple.
You don't think there were tycoons & beggars with gold standard? We had the silly thing in US 'til the seventies! As far as lending with Bitcoin, i can talk you through many interesting lending schemes where the total number of bitcoins in circulation is not the ceiling (hint: when you borrow a million dollars from a bank, do you take it home in a trunk?)
The trick you will have to solve in order to have this paragraph make sense, is how to get someone to accept a fractionally reserve borrowed "~bitcoin" as payment.
I have x bitcoins. I issue you & 10 other people letters of credit for x/9. Magic.
OK, next you are going to have to solve the problem of how to get someone to accept a letter of credit for Bitcoin. Or in other words, the same thing I wrote in the last challenge to this scheme. You've done no magic yet. It is ~bitcoin, or !bitcoin if you prefer... Who accepts it?
The same person who accepts anything more interesting than a pawnshop/payday loan. Unless you're used to asking for your loans in used, nonsequential twenties, you're familiar with one piece of paper representing another.
Edit: Think "line of credit." If it seems inconceivable to you, figure out how the fractional reserve system come into being -- there's no need to "print" all the monyz you lend
Edit2 (tangent): I will also issue Crumblets, paper promissory notes denominated in bitcoins. As tangible currency, requiring no internet access or gizmos, this folding money will become more popular than Bitcoin itself.
Paper is paper. The old game is not the new game, we're talking bitcoin crypto-currency, so you need to improve your trick.
So you don't know anyone who would either take the bait either? And now you want me to do this magic trick for you?
I am well aware of how the fractional reserve system came into being. The problems which were solved by the creation of fractional reserve (carrying heavy gold and silver from place to place) are not problems of bitcoin, it moves faster than most cash equivalents and is lighter than a feather.
To perform your magic trick, you are going to have to find "marks" and "patsys" with whom to trade your "letters of credit" !bitcoins. The trick will be on those that accept !bitcoins for payment for anything rather than asking for bitcoins. I may have a few bridges to sell to your customers, but I am not going to be accepting the !bitcoins for them.
But hey, you are so confidant in this scheme, maybe you are that patsy? Would you like to buy an online wallet account that has !bitcoin in it for the privilege paying interest on it in bitcoin? I have been told the seller promises that they won't sell the bitcoin backing it to more than 10 other people and that they won't take the bitcoins out of it suddenly. It is just as good as bitcoin, really it is.
We can call it !ripple if you like.
If you are going to do this scam, you are going to need a bunch of shills who are going to offer to accept your !bitcoin from your mark after the mark gets !bitcoin from you. Fractional reserve is a confidence game. Why else do banks build such impressive structures? They want your confidence. I'm not saying it can't be done, or even that you can't do it. If it will work anywhere, it will probably work in a high-trust society like USA.
We are way off the topic of MtGox walls. My apologies to the rest, if anyone objects, we'll start a fractional reserve bitcoin thread in a more appropriate place.
