SimplifiedPrivacy.com on Nostr: Custodial Bitcoin services are really banks where you are told you have an amount in ...
Custodial Bitcoin services are really banks where you are told you have an amount in your account, but they don't actually have it allocated to just you. They can lend it out or earn interest on it. And in fact are very motivated to do so.
Fractional reserve banks follow the same model. It's called "Austrian economics", which studies the increase in the money supply created by banks lending.
Published at
2024-09-05 23:54:31Event JSON
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