You seem confused about what I wrote. Suggest you read it again. All you've done is reiterate some Bitcoin dogma without attempting to grapple with reality as it presents itself to you.
I suggest you re-read what I wrote. Your description of fractional reserve banking only holds in a world where bank deposits are fungible legal tender regardless of what they are backed with at any particular moment. This doesn't apply with Bitcoin (and most of its peers) unless there are laws that ban making that distinction. Put simply: the crypto market today doesn’t appear to value Bitcoin “certificates” the same way it values Bitcoin. Other crypto exchanges don’t price BTC as a function of derivates at other unaffiliated exchanges. As long as that’s the case, it doesn’t matter if there are more certificates/obligations than there are Bitcoin, the underlying value of Bitcoin won’t change. This is not that dissimilar to what we’ve empirically seen happen with Gold (and Gold certificates).
Not going to continue this discussion any further because you seem less interested in having a polite conversation, and this is starting to get destructive.
