Author: Billy Tetrud 2021-07-09 22:02:23
Published on: 2021-07-09T22:02:23+00:00
The conversation thread is discussing the idea of companies proving they have bitcoin reserves to cover bitcoins promised as account balances. While one person argues that any company can prove this, another argues that it implies lending and therefore cannot be 100% reserve. They also note that depositing money in a bank is not legally defined as lending to the bank and banks are not legally obligated to serve cash on demand to customers. The conversation includes discussions about the meaning of "reserve" and "solvency", with one person noting that without 100% reserve there is no way to cryptographically demonstrate solvency. However, it is acknowledged that even with full reserves, hacks, insider trading, bankruptcy or state seizure can still occur. Overall, the discussion touches on various aspects of banking and investment, including the limitations of deposits and the risks involved in investing.
Updated on: 2023-06-15T00:10:19.385250+00:00