Questions tagged [fractional-reserve]

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9
votes
3answers
790 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 ...
4
votes
3answers
831 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 ...
15
votes
5answers
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 ...