Questions tagged [fractional-reserve]

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9 votes
3 answers
807 views

How can I find out if an e-wallet service uses a fractional reserve system?

A comment on this answer pointed out that the total amount of bitcoins in circulation could appear to go above the limit of 21m if wallet services use a fractional reserve system. However, in that ...
Highly Irregular's user avatar
4 votes
3 answers
850 views

What are the advantages of sharing money in hosted e-wallet services?

I was a little bit shocked to learn that many (if not all) hosted e-Wallet providers combine their customers money in the hosts account, instead of just providing a service for easy access and storing ...
Dr. Hans-Peter Störr's user avatar
15 votes
5 answers
1k views

How would interest and fractional reserve banking work in a limited money supply?

Suppose Bitcoin lenders (banks, creditors, investors) issue loans with interest. As the total supply of bitcoins approaches the 21M ceiling, the total amount owed in outstanding interest will exceed ...
Andrew Vit's user avatar