RE: Fractional Reserve Banking and Steemit - Questions for Experts ...

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RE: Fractional Reserve Banking and Steemit - Questions for Experts ...

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sigmajin (65)in #steemit • 8 years ago

But not just on that one newspaper... steemit isnt newspapers in general in this model, its just a newspaper. And anyone can start one.

im getting all talkative now... but think about it.

Imagine you pick up a newspaper.... and you can vote on how much of that days profits you think the paper should pay each individual author.

And not just journalists... advertisers, letters ot the editor, photographs...a ll the content.

but now imagine that you can pay to buy more votes, and so can everyone else.

8 years ago in #steemit by sigmajin (65)

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r4fken (-13)(1) 8 years ago (edited)

"How much of that days profit" is what I don't get. Steem (or Steemit) doesn't have profits. They only have the perceived value of Steem in the form of a market cap.
But I should probably read your article first. Will do now. :)

$3.95

6 votes

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sigmajin (65) 8 years ago

Which all comes back to ... creation of money (though not through fractional reserve)

Yes, you could say that banks create money through loans. It isnt strictly accurate, because its really the fed thats creating it, just like they create all money.. but yeah, its being created. Think of it this way. Berniesansders upvoted my reply earlier itt, and that upvote made me $800 bucks (which, btw, thanks bernie). I didnt get the 800 from bernie, though. He wasn't giving me his money. You could argue that bernie created that money by voting... and i suppose you'd be partially right (as right as you are about banks creating money through lending). But really what created that money was the steem "central bank", a thing i call the Vault thats modeled off the federal reserve and i don't think anyone else has really noticed yet. Someone else created the money -- Bernie just decided who to give it to. (in that analogy SP holders are like commercial banks and the vault is like the fed, which doesnt completely work but you get the point)

$0.08

2 votes

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r4fken (-13)(1) 8 years ago

Should've replied here. See my comment below :)

$0.03

1 vote

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r4fken (-13)(1) 8 years ago

Above! :D what a system lol

$0.03

1 vote

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r4fken (-13)(1) 8 years ago

I've just finished part 2, looking forward to 3. So, am I correct if I say the "vault" always has a full reserve? As it's basically divided by 100% (vests) anyway. Right?

$0.00

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sigmajin (65) 8 years ago

Im pretty sure its based on a fractional reserve. Because when you convert SBD, the steem you get comes from the vault

$0.03

1 vote

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r4fken (-13)(1) 8 years ago

@sigmajin Hmm. Then why is there so much bashing on Fractional Reserve for fiat currencies? :D Is there a difference I don't yet understand? Or do people just like a good old bashing?