But it's a fractional reserve system with respect to fiat currency. The price of... | Hacker News

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		cryptica on Feb 22, 2019 \| parent \| context \| favorite \| on: You Do Not Need Blockchain: Popular Use Cases and ... But it's a fractional reserve system with respect to fiat currency. The price of Bitcoin is supported only by a fraction of its market cap in real fiat money. If everyone decided to sell all Bitcoins in existence on the open market, the total amount of fiat that they would get for it would not match the total market cap of all Bitcoins before the selloff started.

UncleEntity on Feb 23, 2019 [–]

That's not really the way fractional reserve works but merely the result of normal market pricing through supply and demand.

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