Excellent thread

https://twitter.com/LT3000Lyall/status/1637291871839072256

Working on Farcaster and Warpcast. Longer thoughts at https://dwr.email

Isn’t deposit money “fictional”. Eg bank a takes my money and lends 80% of it, then the borrower deposits in their bank etc so my $1 deposited is like $5 (probably have the math wrong). If money includes the multiplied money, and people withdraw to their mattresses, doesn’t that contract the money supply?

Contributor to Kanon.art, creators of the K21 art collection (K21.kanon.art), kspec.io (institutional grade provenance), rqdq.io (NFT borrowing protocol) + more

Staying up late at night wondering what the unrealized possibilities of Farcaster may be.

Yup agree. Question is why is anyone doing this. Makes no commercial sense. I don’t want to lend to a bank, I just want a checking account. And these days I have plenty of options (even outside of BTC) for doing that that don’t involve me lending to anyone

youre referring to fractional lending and yes if everyone wants their money the banks are screwed. If you deposits $100 into a bank, they can create around $900 equity when all is said and done. At the current 10% they would lend out $90 which in turn is deposited into the bank and $81 is lended out and so on.