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Home News Bitcoin Bitcoin Is Returning to the TRAP of the Fractional Reserve Banking System

Bitcoin Is Returning to the TRAP of the Fractional Reserve Banking System

Coinivore

March 25, 2021

1418

In this video, cryptocurrency trader Colin from the Talks Crypto channel asks whether Bitcoin’s failure to scale will force users into custodial services that issue bitcoin IOUs to avoid on-chain transaction fees. And if they issue more IOUs than their reserve of bitcoin, we are right back into fractional reserve banking.

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Bitcoin Is Returning to the TRAP of the Fractional Reserve Banking System

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