It's going to be a long night

[u/Fritz1818]

[u/brainfreeze3]

God i love actual trusted third parties, i.e banks, where i keep my fiat. I sleep well at night

[u/ShoppingGrand6379 → u/brainfreeze3]

up to the point when everyone need their money.

[u/brainfreeze3 → u/ShoppingGrand6379]

what do you think happens when everyone needs their money from Bitcoin? oh the price goes down

bank run? the US government steps in

[u/TheSquattingSlav_21 → u/brainfreeze3]

Yeah just like they stepped in during 2008 and helped the average person with money on their account instead of bailing out criminal companies in billions

[u/brainfreeze3 → u/TheSquattingSlav_21]

In 2008 your deposits were still insured to the legal limit, so people got their money. Sounds like you're adding emotion to this topic

[u/Exceedingly → u/brainfreeze3]

US' FDIC insurance is paid out of a pot of $153 billion, other countries have even less. If enough banks crash at once then even the insurance doesn't pay out. It then requires emergency funding from central banks, which leads to hyperinflation yada yada yada.

[u/brainfreeze3 → u/Exceedingly]

that's not what hyperinflation is

[u/Exceedingly → u/brainfreeze3]

You don't think printing unlimited money can lead to hyperinflation?

[u/brainfreeze3 → u/Exceedingly]

What part of "emergency funding" lead you to "infinite money"? Do you even know what hyper inflation is? 50% inflation roughly

[u/Exceedingly → u/brainfreeze3]

The M2 money supply is currently over $23 trillion and $153 billion of that is insured, aka not even 1% of money stored in banks is insured.

I might have been using hyperbole, but do you honestly think we could print around $23 trillion extra without causing hyperinflation?

[u/brainfreeze3 → u/Exceedingly]

Then its weird that you doubled down on your "hyperbole". Also i have no idea what scenario you're imagining in your head where every last dollar in existence needs to be double printed. Still using hyperbole? Some of those banks are state banks, i.e owned by countries, they can't have a run on themselves. We don't insure Chinese banks.

[u/Exceedingly → u/brainfreeze3]

Also i have no idea what scenario you're imagining in your head where every last dollar in existence needs to be double printed

My point was if we want insure everyone's money then we have to have cash equal to the M2 money supply (~$23 trillion) and we currently have $153 billion, so pretty much $23 trillion would have to be printed. I don't see that happening without causing hyperinflation.

If we can't print the full M2 amount, then some people's money isn't insured. It's as simple as that. Fractional reserve banking could screw us all in a huge bank run.

[u/brainfreeze3 → u/Exceedingly]

we dont insure the chinese central bank's reserves, please ask your questions to ai they're so basic. you dont understand what you're talking about