Why We Need Crypto - How Banks Print Money & Scam People

TLDR: Fractional reserve banking allows your $1000 deposit to be turned into $10,000 of loanable cash therefore "printing" money. You earn 0.1% on that money and banks will make 3-20% on it. Plus dont forget all the fees they charge, truly a scam.

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Ill explain the basics of how banks earn/print money and why we lose out

You get $1000 from your only fans you then go put that money in the bank. The bank doesnt need to hold all of that money, only the federal reserve ratio which is currently 10%. This means that only $100 need to be held at the bank the other $900 can be loaned out.

They then loan that $900 which is used to buy something, the receiving party deposits $900 and bank loans out the other $810. This goes on and on but in the end the bank loaned out ~$10,000 from your initial $1000.

This is also known as fractional reserve banking and is essentially printing money. It does help the economy with easy money flow etc but the winning party are the banks

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The $1000 in your account earn you 0.1%. Yep a whopping $10 a YEAR. If you're very very very lucky or decide to freeze the money for multiple years in a CD or special savings you might get 1-2%. Either way this is way under inflation.

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In the meantime the bank loaned out your $1000 or well $10,000 now and they are earning much higher percentages. 15-25% if its credit card loans, 5% for car loans and 3-5% if its house loans, again this varies by bank, persons credit etc. Either way they are making 30x the money you on the low end and 200x on the high end.

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However some people started to realize banks are greedy scammers and keep less money with them, welp they fought back. Most banks now have a minimal account balance you need so you dont get monthly fees. Yep they charge us money unless we give them more money to play around with. These can be anywhere from $5-20. If thats not enough Dont forget late fees, overdraft fees, transaction fees, ATM fees, so on and so forth.

In the end the banks are being carried on our backs to their riches, they have been trying to stop people from using crypto by blocking accounts due to "suspicious" activities and "caring" about us. We dont need the banks they NEED US. Decentralization of massive banks will be the economical revolution we need.

BONUS - Dont forget most of big banks launder money for the cartels, HSBC was notorious for doing it and Wells Fargo made fake accounts for people.

BONUS PT 2 - They also get big bailouts when they fuck up like in 07-08 and we get nothing. Also the billions they took during pandemic in overdraft fees.