Fractional Reserve Banking is a widely adopted practice in modern economies, whereby commercial banks are allowed to hold only a fraction of their deposit liabilities as reserves, while lending out the remaining funds. Looked at differently, Fractional Reserve Banking is a system employed by banks to create money and facilitate the flow of capital within… Continue reading What is Fractional Reserve Banking System
Tag: Inflation
Inflation is Theft Sticker
The image of a Bitcoin sticker on a bathroom stall in Italy with the text “Inflation Is Theft” is a stark reminder of the dangers of inflation and the value of a decentralized currency like Bitcoin. Inflation, which is the decrease in the purchasing power of money over time, can have serious consequences for individuals… Continue reading Inflation is Theft Sticker