According to the Bitcoin protocol, only a maximum of 21m BTC can exist. And that they are created via mining in a predictable schedule.
Respectfully, I think you need to revisit Bitcoin fundamentals.
At least, that's my view. We'll see if there's a flight to liquidity when the bubble in Bitcoin's price finally pops.
That's a reasonable position to have. I think it is overpriced too.
It still doesn't make it a 'fractional reserve system'. It instead means that the price is to high.
These are different things, that have nothing to do with each other.