Note that these pledges were CREDIT, not MONEY. A distinction without a differen... | Hacker News

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patrickg_zill on Feb 25, 2014 | parent | context | favorite | on: Joint Statement Regarding the Insolvency of Mt. Go...

Note that these pledges were CREDIT, not MONEY. A distinction without a difference when it comes to post-Federal Reserve days.

You can't do this with BTC, because there is no credit market at this point.

Everything in BTC is full-reserve, all the time; there is no fractional reserve banking of BTC - it is in your wallet, or it is in my wallet.

icebraining on Feb 25, 2014 [–]

What makes you think that online wallets (including exchanges) keep 100% of their reserves? Without inside information, I find it extremely hard to believe that they would just eschew that advantage.

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