...
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.
Are you saying that my Bitcoin fractional reserve lending is no better than the fiat lending we know & love? I agree. All i wanted to show is fractional reserve lending could be done without inflationary currency -- what did you think i was trying to prove?
I just want to see your magic trick.
I have x bitcoins. I issue you & 10 other people letters of credit for x/9. Magic.
We both know how the trick is performed long before we started this dialog, it was done with gold (inflationary only in geologic time). So don't need proof, just a performance.
Show me the rubes that will sign on for accepting the debt (!bitcoin) of fractional reserve lending of Bitcoin, as a payment for something. I'm sure they are out there, it is a ancient and brilliant con. I want to meet these marks, these rubes, and to see you do the trick. I am also curious to discover what they think after they learn the secret of the trick. When the illusion is revealed and they realize that the emperor never had any clothes, nor do any of the other emperors, and they aren't wearing much themselves either.
When their exposure is exposed, they just may want to buy some of my bitcoins, or my precious metals (but I won't be taking any of their !bitcoin for that). Or if it is too much work, just point me to someone else that is doing it, and I can have my fun.
