Sound Bitcoin Banking Versus Unsound Bitcoin Banking

Bitcoin banking today is caught on the horns of a dilemma between the creation of inflationary money through DeFi without the creation of corresponding new wealth (unsound banking) and the Rothbardian fiat 100% in-kind fractional reservists. (Yes, 100% is a fraction!)

The first can be described as unsound banking the latter can at best be described as a bitcoin warehousing operation, no different from a gold warehousing operation except that the base money is bitcoin, rather than gold.



Ugly Old Bitcoin Standard Bearer

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store