beehiiv-import

⚡Banks Don’t Need Your Deposits🏦

Croxroad

05 Aug 2025 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

💸 The Great Fiat Illusion

We have been sold a comforting story about how money works. Banks, we are told, take deposits and lend them to others, acting as middlemen in the financial system. But what if that story is a myth? Economist Richard Werner shattered that illusion in a bold 2014 experiment. He borrowed two hundred thousand euros from a small German bank and tracked every detail. What he found was stunning. The bank did not transfer funds from any reserve or deposit account. It simply created the money with a few keystrokes. No gold. No savings. Just numbers typed into existence. This is the hidden truth behind the financial system.

This phenomenon is not limited to theory. Each year, commercial banks generate trillions of dollars through lending. In 2020, during the pandemic, global bank credit creation surged dramatically, reaching double digit trillions. And when lending slowed, so did the economy. The pattern is simple. Loans create deposits. Credit drives the money supply. When directed toward real estate or assets, it fuels inflation and bubbles. When channeled into production, it can grow the real economy. The money supply is not handed down by central banks. It is summoned by commercial ones. And they are rarely held accountable for what they do with that power.

Bitcoin maximalists like Saifedean Ammous see this system as fundamentally broken. In his view, fiat money enables waste, corruption, and the erosion of individual wealth. He believes the only antidote is hard money with a fixed supply. No counterparty risk. No inflation. Just math and trustless code. But others argue for a middle path. Tight control of credit, aligned with real output, could offer stability without the austerity of a fixed money system. Either way, one fact is now impossible to ignore. The money in your bank account was created with a promise and a few accounting entries. The question is not whether this system works. It is whether it works for you.

🧪 Binance Expands Access

Binance has just opened up Bitcoin options writing to all users, marking a significant shift in access to crypto derivatives. Previously limited to institutional or select advanced users, the feature now allows everyday traders to write options contracts, collect premiums, and manage risk or speculation with more flexibility. This move not only broadens participation in the options market but also signals Binance’s intent to bring Wall Street-style instruments to a global retail base.

The feature enables users to write cash-settled Bitcoin options and collect premiums upfront, a strategy traditionally reserved for sophisticated investors. By lowering the entry barrier, Binance is democratizing access to yield-generating strategies once considered too complex for the average trader. This could open the floodgates to a new wave of structured products and passive income tools in the crypto space. However, it also introduces higher risk, as option writing carries the potential for significant loss if markets move sharply against a position.

The timing is crucial as Bitcoin volatility picks up and traders seek new ways to navigate uncertain conditions. Binance’s move may attract both opportunity seekers and critics, but one thing is clear, the exchange is betting that the future of crypto trading lies not just in buying and holding, but in sophisticated strategies made accessible to everyone.

✅ How to Buy

You can buy Bitcoin through crypto exchanges like Binance, Coinbase, Bitget, or local ones like Rain or EasyPaisa-integrated platforms in Pakistan. You’ll need to sign up, verify your identity (KYC), and then fund your account using bank transfer, card, or other local payment methods. Once you buy BTC, it shows up in your exchange wallet, but that’s not where it should stay. Not your keys, not your coins.