its actually way worse with fractional reserve than you think. there is something called paper gold, it is the exact same thing as a fiat currency except with gold. they say there is gold there but the ratio of paper gold to real gold isnt controlled/regulated once so ever so they can print as much as they want and stupid investors believe they own the physical gold, if they got a run on gold 99% of investors would not have the asset they believe they own
its actually way worse with fractional reserve than you think. there is something called paper gold, it is the exact same thing as a fiat currency except with gold. they say there is gold there but the ratio of paper gold to real gold isnt controlled/regulated once so ever so they can print as much as they want and stupid investors believe they own the physical gold, if they got a run on gold 99% of investors would not have the asset they believe they own
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