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Posted: 2025-04-27 03:08:51 UTC
This article contains some claims that remain unverified. While much of the content may be accurate, exercise care when relying on this information.
This article contains some claims that remain unverified. While much of the content may be accurate, exercise care when relying on this information.
Status
Last Updated
2025-04-27 03:09:13 UTC
Verified By
Rollup News
The limited on-chain capacity of Bitcoin, due to its small block size, is argued to be a feature that benefits custodial institutions by preventing bank runs and supporting fractional reserve practices.
Bitcoin's limited block size and its impact on transaction capacity.
The advantage this limitation provides to custodial institutions.
Bitcoin's suitability for fractional reserve banking.
The discrepancy between individual and institutional usage of Bitcoin.
Limited block size causing transaction delays during high demand.
Potential for users to be stuck during exchange withdrawals.
Risk of bank run scenarios exposing custodians' fractional reserve practices.