Why banks hate Bitcoin

This post is mainly for the newcomers.

To learn why banks hate Bitcoin, we need to first understand how your money works in a traditional bank account.

The second your deposit hits the bank, it's not your money anymore.

You no longer own it.

It is now money that the bank owes you, because that money is immediately lent out 20x in waves of credit bubble with 0% in reserve, that the bank happens to be making a 2% margin on, of which you don't see any even tho its technically your money that theyre playing with.

​

Banks are terrified of Bitcoin.

Why? Simple, because it cripples their underlying business model that is fractional reserve.

If I withdrawl $50,000 which I then use to buy Bitcoin and transfer to cold storage, I am effectively robbing the bank of their ability to generate $1 million dollars of liquidity on their balance sheet with my $50,000 if it just sat in my account instead doing nothing.

Keep in mind this is $1 million of new money that the bank is making 2% on, so I'm also robbing an additional $20,000 margin off their books per year in perpetuity.

This is why we're seeing big banks tighten restrictions and scrambling to close btc on-ramps because theyre shitting themselves scared at the thought of everyone one day waking up and moving their capital into actual hard sound money.

If people truly understood how fractional reserve banking worked there would be a revolution overnight.

Bitcoin is the answer. Thanks for listening to my ted talk.