End of 21 Million Bitcoins as you know it
Most people are going to dislike me for writing this piece, but please don’t.
I did ring the bell at the top in Nov-2017. This time the call is NOT about a price drop but something Worst: “Price Stagnation”. Read my Steem “Bitcoin — The 9 Innings Game” to understand my position.
Today (October 25, 2018), Mastercard has applied for a patent for Fractional Reserve Cryptocurrency Bank — application 20180308092
I have been warning about this possibility since November 2017. Now we are lot closer to it with this patent for Fractional Reserve Cryptocurrency Bank.(Thanks @cryptocraig123 for sharing)
This Is NOT a Joke; There is a reason for this patent
The Ultimate Irony: Fractional Reserve Bitcoin
Fractional reserve banking is one of the problems Bitcoin was designed to solve. Instead, bankers have decided to solve Bitcoin’s scarcity problem by applying Fractional Reserve to Cryptocurrency.
Fractional Reserve Bitcoin is the inning #3 as explained in my Steem “Bitcoin — The 9 Inning Game”
What does this mean?
I am going to keep it short: Fractional Reserve, Commingling, Rehypothetication and Derivatives are complex words for one simple thing — increasing paper supply of something that has limited physical supply (like Gold, Silver, Bitcoin and Cryptos in general). Fractional Reserve is a magical paper copying machine invented by Wall st. and everything is legal about it.
This is how Paper Bitcoin will be created
With this patent, the Fractional Reserve Cryptocurrency Bank will be able to LEGALLY trade 10 times more Bitcoins than it holds in its reserve (10% requirement). Rest assured — they will.
My thread with John Mcafee from Nov-2017
Bitcoin may be limited “mathematically” as McaFee says, but unfortunately Banking will create unlimited supply “magically” (through FR). Wall St. has found solution to Bitcoin’s scarcity 20 years before Bitcoin was invented. It is called Fractional Reserve.
First they introduced Futures market, then the Bitcoin was brought down and now the fractional reserve gets into picture as volume grows on the futures market. They say there is no perfect murder…time will tell us how this goes.
You still don’t believe, right?
I am not surprised. Experience is the best teacher. Time will answer all questions.
Banks are already signing clients for paper-Bitcoin products. Goldman has on-boarded a “small number of clients” to actively trade the derivative, a non-deliverable forward, which is a cash-settled product that is comparable to a futures contract but does not trade on an exchange. Bingo! No Bitcoin involved.
But, there is a hope!!
This Paper Ponzi will end one day….Till that day, the Fractional Reserve will rule. The Bitcoin supply will continue to increase (just as they have successfully done with Gold & Silver for last 8 years).
Whether we like it or not, it is time to recognize the threat instead of putting our heads in the sand.
Good luck to all. I am waiting for another rally after ETF and Bakkt so I can sell high AGAIN. What are Bitcoin Minimalists going to do?
More at my twitter @Super_Crypto
Tip Jar — Why not?