Doesn't bitcoin have the same inflationary problems as fractional reserve banking?
Doesn't bitcoin have the same inflationary problems as fractional reserve banking?
I keep hearing that Bitcoin is immune to inflation because You can't make more bit coins than some fixed constant of bitcoins through a process of mining. However, assuming enough people take it seriously, doesn't bitcoin have the same inflationary problems as fractional reserve banking? As soon as you put it in a bank because people hate storing their bitcoins in a "vaults" like gold, you introduce the same old fractional reserve banking system that the US federal reserve watches over... and because its an international currency that's not regulated, who sets the fractional reserve rate? its that a bubble waiting to happen? What happens if there's a run on a bank?
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