- This topic has 4 replies, 2 voices, and was last updated 3 months, 3 weeks ago by unlikelyimplausible.
- Friday, June 3rd, 2022 at 06:26 #295280GSadmanParticipant
I personally don’t believe they do this , at least not the big exchanges like Coinbase. I know not your keys not your coins , I agree with that. But do you think they create “paper bitcoins” so that they are are selling “bitcoin” but not actually holding that exact amount of bitcoin their customers are holding in their accounts? Could this be audit on chain versus public information on these companies? At least for Coinbase being a publicly traded company. What does the community think …Friday, June 3rd, 2022 at 06:34 #295281ndgoLiberty
I’d argue that if anyone is using bitcoin on a large scale it’s the exchanges.
The problem is that those same exchanges are willing to loan out that bitcoin to short sellers at attractive interest rates.Friday, June 3rd, 2022 at 06:38 #295282Ofiller
I don’t believe you can generalize. But..
I think some of them probably have two different sets of holdings.
One imaginary that shows what we see.
And one that is real where they speculate based on all the data.
E.g. u buy btc at 32k. They pretend they added a btc. They watch the sentiment and wait for 30k. Then they actually buy one. The fake spread is a risk that I believe is worth it for them. That’s why I assume this.
They could have safety measures and extra cash on the side (from the added profit) to correct any mistakes they made during unforeseen pumps.Friday, June 3rd, 2022 at 07:11 #295283OscarOfAtlantis
Some exchanges can be verified on the blockchain independently. These exchanges are not making paper Bitcoin. However, if they loan out your BTC four other investments this adds risk to your purchase. I’m not sure how to find out which exchanges might be doing this.
Robin hood used to have a weird set up where you didn’t get a wallet address and you weren’t able to send or use the coins in your crypto wallets. Exchanges like these are probably “paper coin pushers “ because they may not hold 1:1 coins for what is in your amount with them. If you can’t send it to yourself to a cold wallet then it’s “paper”.Friday, June 3rd, 2022 at 08:59 #295284unlikelyimplausible
Is there a way to see _all_ of the personal accounts of the exchange’s clients?
Say, 10 people each send 1 BTC to an exchange and get a balance of 1 BTC on their account. Then the exchange lends, steals, loses, whatever 5 of those, so there is now 5 real and 5 paper BTC. How do you know 5 of other users didn’t just withdraw their 1 BTC and all is fine? Can’t see that on the blockchain and the Excel sheet the exchange uses to keep track of users’ accounts is not public.
Also, exchanges do not _sell_ or _buy_ (at least they shouldn’t, and not even own any BTC, due to coflicts of interest). Their job is to make it possible for their clients to trade between eachother by matching buy and sell offers.
- You must be logged in to reply to this topic.
Related Forum Topics:
- → Kanye West says do not ask him to make f****g Non-Fungible Tokens. He would rather make products that are ‘Real’ such as, ‘ Real music, Real Food, Real Clothes and Real Shelter’.
- → Michael Saylor: “The reason that BTC is magical is because there’s only 21 million. I can create more real estate in NYC. I can create more cars. I can create more luxury watches … BTC is a scarcity. Name another scarcity in the world … It’s not clear there is another scarcity.” [Crypto News]
- → Is it possible to print BTC paper money? Obviously a paper wallet is possible, but if someone withdraws it then the paper is useless.
- → Remind me again why they won’t allow bitcoin spot ETF? This is the time for BTC to decouple from legacy markets. If you want to see the real demand for bitcoin, take your coins out of exchanges. Do it now!
- → Bitcoins that are trading on exchanges aren’t bitcoins. When you hold BTC on exchanges you don’t hold BTC but ” BTC IOU”.
- → Different amount in pancake swap. Trust wallet shows one amount then when I go to pancake swap and check through usdy it shows a way less amount of money
- → 1 Million LUNC Got You About 4 LUNA Which is About 25.00. 1 Million LUNC is Worth $104.00. I’m Not Sure Why People Are Dumping LUNC! Some Simple Math Shows That It’s Still Worth More Than LUNA Even When You Hold Large Amounts of LUNC. Can’t Believe the Amount of Idiots Involved in Investing…
- → If certain countries ban mining wouldnt that make it harder to create new bitcoin, meaning the supply of bitcoin decreases and with more accepting bitcoin as payment, demand increase with time, so wouldn’t the price increase?
- → Anyone arguing about BTC’s energy consumption understands neither BTC nor energy. BTC’s energy use is a function of its value. The network algorithmically resolves the exact amount of energy (work) required to secure that value at any given time.
- → TO BE PATIENT IS THE KEY Hold! Hold! 🍀 Hold 💰💰
- → BTC is more than code. bitcoin is an idea. Idea to be free! BTC unites people all over the world, it cannot be stopped. Millions of people come to bitcoin for profit, but stay for the revolution. Hold on tight to your bitcoin! [Image]
- → PSA: Please take your bitcoins off exchanges and take self custody to prevent shorts and decouple paper and physical bitcoin.
- → I hold Eth and I hold Xrp. Do not ignore the SEC signals right now. They are gearing up to come after ETH. One reason….disgorgement. XRP, ETH, Library and exchanges are now all on the same team.
- → The invasion in Ukraine is causing #BTC to drop…INITIALLY. People tend to liquidate risk-on assets in times of uncertainty. What they don’t truly understand is #BTC was made for situations like these. I believe #bitcoin will stand this test of time & prevail. It always has.
- → This whole set of comments from munger/Buffett—I cannot believe they do not understand the value of bitcoin and its value as a currency/store of value, which leaves me to believe that their comments are malicious