Bitcoin Gone Wrong | Bitcoin Bank

Enthusiasts in the field of bitcoin and blockchain technology often site the reason that current fiat system is on the path of self destruction because its based on virtual reality rather then actuality. The sudden rise of bitcoin and the gain of mass acceptance has not been because its able to move with relative ease in the virtual world. But also because it brings accountability, banking, decentralization and peer to peer model packaged in an opensource software.

It is often sited that banks work on creating money out of thin air. Where central banks control total money supply, the banks are able to receive deposits then give them out for loan to 3rd party to profit. This problem was highlighted in a recent crash of markets when liquidity was shorted and had to be filled with extra printing of fiat money, as early as 2008. This also resulted in a crash of many banks as they were unable to sustain the withdrawal pressures.

Bitcoin Follows:
This creation of virtual money is not happening in bitcoin. While bitcoin cannot be forged services ontop of bitcoin are now filling what banks did wrong even without realizing what they are doing wrong. Exchanges are now giving leverage plus margin trading which essentially what banks did with loans. This is building an artificial economy. Looking into this further, most exchanges (top in trading) dont even have liquidity for 2000btc(these are not combined numbers). A simple look through the tool on bitcoinwisdom. Its important to realize that bitcoin was meant to replace all this and replace the artificial currency created by banks.

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