Author: Eric Voskuil 2021-07-09 18:32:12
Published on: 2021-07-09T18:32:12+00:00
In a conversation between Billy Tetrud and an unknown party, Tetrud claimed that any company can prove that they have bitcoin reserves to cover bitcoins promised as account balances. This was in response to the other party's comment that there is an unsupportable leap being made in Tetrud's claim. Tetrud clarified that he did not mean 100% reserve when discussing lending institutions like banks, but rather that customers expect to be able to withdraw their cash on demand. He also pointed out that money markets have had no reserve requirement and have a nearly spotless record of satisfying their obligations. The discussion then moved towards the idea of cryptographic proof of solvency and how it may not guarantee against hacks, insider or otherwise, bankruptcy, or state seizure. Tetrud suggested that if one wants full reserve banking, they should use a wallet, and if one wants to invest, the money will be spent - that’s why it was raised.
Updated on: 2023-06-15T00:09:00.158184+00:00