Nice axiomatic claim you have there. No doubt all the banks will be happy to lend out real Bitcoin. They certainly wouldn't *dream* of developing system for fractional reserve. And for some reason, despite all historical precedent, all Bitcoin maxis believe that this is a total impossibility and refuse to admit it's a concern. Because "digital money can not fail the same way gold did" There's certainly the possibility you're correct, and that would be great. but it's really weird that you seem so confident about it, but unable to present any coherent argument for why my concerns are unfounded. There's clear precedent, there's incentive for them to do it, there's already infrastructure that allows it to happen. But it's just not a concern I guess. Because reason.

BTW - this false belief played out with various CEX when Monero had been still listed. It was the main reason why Monero missed the last bull market while every memecoin reached x100. Distraction pump vs fractional (control) reserves.