Cipherhoodlum on Nostr: The post shows Hal was more liberal in his view, allowing for a range of banking ...

The post shows Hal was more liberal in his view, allowing for a range of banking models to develop on top of Bitcoin. He envisioned a system where both fractional reserve and fully backed banks could operate competitively, with users free to choose the level of risk they accept. This aligns with the principles of a free market, where outcomes are determined by voluntary participation rather than imposed restrictions.

Bitcoin was designed to remove the need for trust in third parties, not to dictate how others must use it. If individuals choose to place their coins with a custodian, whether fractional or full reserve, that is their decision. The protocol does not enforce behavior. It simply provides a sound monetary base that cannot be inflated or censored.

Ultimately, those who do not trust banks have the ability to hold their own keys and verify every transaction independently. That is the power of Bitcoin.