The only thing propping up banks is people. #propping #banks #people


The only matter propping up banks is persons.

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  • nullama Reply

    The money people deposit in the bank is just a fraction of what the banks loan to other people, effectively making money out of thin air.

    The official requirement of bank reserves (deposits to loans ratio) used to be 10%, but recently that was dropped to 0%:

    > In March 2020, the Board of Governors of the Federal Reserve System reduced reserve requirement ratios to 0%, effectively eliminating them for all depository institutions.

    [Here’s a nice summary](https://www.investopedia.com/articles/investing/022416/why-banks-dont-need-your-money-make-loans.asp)

    November 4, 2022 at 8:47 am
  • mnijs Reply

    Just like Bitcoin then: only thing propping the network is users.

    Only difference is interests and incentives are positively aligned.

    November 4, 2022 at 8:47 am
  • ladrm Reply

    I have a bank account, I have my credit card which I use to pay everywhere.

    Now let’s say I lose my credit card, I lost my phone with banking app as well.

    All I need to do is to go to the bank and present my ID and I will get a new card and new auth for the app. Because bank is acting as a (centralized) custodian for my assets, so the account being in my name is easily recoverable.

    How does this work with BTC?

    November 4, 2022 at 8:47 am
  • mcrech Reply

    It will be a long way.
    Banks are entering the crypto space as well with their shitty centralised, doomed to fail „cryptocurrencies“.
    People need to understand the advantages of real decentralisation first.

    November 4, 2022 at 8:47 am
  • blackdvck Reply

    The only thing holding up banks is debt

    November 4, 2022 at 8:47 am

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