Young Master Smeet

You're write that using a block chain doesn't require laws prevent fractional reseve lending.  But that's missing the point.  The point is that it can be used to create a digital currency were fractional reserve banking is less profitable.  There have been many attempts to create a fractional reserve bank for bitcoin and they all failed.  They all used your old trick of using IOU's like on the back of a fag packet and all these banks have gone bankrupt.  It seems in Bitcoin the money is too traceable for fractional reserve banking to work.  It's harder in bitcoin to hide the fact that the bank is s ponzi scheme in essencse.  The public receipt on the blockchain for money transferes meens the bank customer can see the bank reserves and judge how the bank is unsound.  The non-public nature of capital cash dollars exchange reqeipts kept in the fractional reserve banking allows the fiction that the bank has "your" money in the vault and lent out someone elses money.  That doesn't work in Bitcoin digital currency because anyone can look at the bank financials and realize quite quickly they aren't sound places to put your money. So the half life of a ponzi scheme in capitalism is generations as in the case of fractional reserve banking.  BUT the half life of a ponzi scheme in bitcoin as a currency is just a few months becuase things play out faster on the internet and it's harder to create a financial fiction using bitcoin. What tends to happen with the bitcoin banks that have been tried is they 1) have no government enforcement powers or federal reserve to support them  so they crash.  So yes they can write an IOU on the back of a fag, but NO the people will not buy that IOU and the government will not enfoce the terms of the IOU. So the IOU is a worthless piece of paper backed only by the banks non-legally  binding promise of payment 2) people just ignore the bitcoin banks because they don't need a bitcoin bank and bitcoin banks go out of business and are unsafe places to store value.  Historically enough bright eyed capitalist have tried and failed to bring fractional reserve banking to the bitcoin currency.  Capitalist bringing fractional reserve banking to bitcoin fare about as poorly as communist bring communism to the public after a revolution.  It seems to work for a little while, then flounders in some way for one of several obvious reasons and then fails.