The real reason why banks should worry about bitcoin

Bitcoin is a bearer instrument, meaning that there are no liabilities or debts associated with it. If you hold it, it’s yours. And as such, there can be no run on a “bitcoin bank.” This makes holding bitcoin superior in many ways to holding fiat currency in a deposit account. It has all the benefits without the risk of capital controls. Because of this, the growth of bitcoin is sucking value out of national currencies.


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