Agreed, on a BTC standard though (much like a "pure" gold standard might've been) trusted third parties will be incentivized to be good actors and make sound lending decisions since trust and reputation will actually count as things earned, not assumed.

gabybaby

Meta Econ Takeover Day 28

Undisciplined

I know it is contrary to what a lot of Bitcoiners believe but there will still be some degree of fractional reserve banking on a bitcoin standard. 

People are going to create claims on bitcoin whether we like it or not. 