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actual facts... explain the upside of fractional reserve lending for me.

Nowhere was fractional reserve lending mentioned by TDV or by me. My comment entirely and completely about whether or not banks are "scared" of cryptocurrencies.

They are not. They are going to use cryptocurrencies.

Ok. I take back half my offensive language. I shouldn't have said "bank". Only kidding. Too much caffeine. Just hate to hear a guy promo fiat.

Then only thing that holds value is belief. Belief in gold is no different than belief in bits, or in "fiat."

I've read that when the first king tried to use gold as a currency he had to back it with livestock because everyone knew they could use the livestock for food.

Nothing other than food, water and possibly shelter has any actual inherent value.