Questions tagged [fractional-reserve]

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Is Bitcoin's supply inflated by the exchanges of Bitcoin?

For example, would an exchange of Bitcoin hold accounts for 100,000 customers, and they collective have 8000 bitcoins, but the exchange itself does not hold 8000 bitcoin, but only 1600 for customers ...
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3answers
244 views

How can loans work with bitcoin?

Before answering this question please go through this scenario Let's assume that we have now become a bitcoin-only economy and nearly all bitcoins have been mined. Now, someone wants to do business ...
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3answers
1k views

Does a segwit based side chain like the lightning network allow for fractional reserve?

I'm confused. I've watched the video The Lightning Network Explained (Litecoin/Bitcoin), and read the following comments by Craig Wright: This occurs because schemes such as segregated witness ...
5
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1answer
625 views

Which Bitcoin exchanges publish proof of reserves?

I am tired of fractional reserve exchanges continuing to run with account holders eventually holding the bag. Which exchanges publish proof of reserves. Real time proof with blockchain addresses ...
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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 ...
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1answer
191 views

Measuring total amount of Bitcoin in circulation

Since fractional reserve banking where money is created by lending is possible with Bitcoin is there a way it can be measured to give a total amount of money in the system? Such a measurement would ...
0
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1answer
258 views

How can you operate a fractional reserve e-wallet?

There are topics about the possibility of e-wallet providers operating like fractional reserve banking. How it can be done in theory and practice? Did it ever happen on any meaningful way in Bitcoin'...
5
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2answers
636 views

Can Ripple gateways operate as fully transparent fractional reserve banks?

Any Ripple gateway that establishes a solid reputation will be tempted to switch to fractional reserve issuance of its own IOUs to increase leverage (which is exactly what the existing comercial banks ...
4
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3answers
834 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 ...
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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 ...