Suppose an exchange has 10 BTC in their reserve . The BTC value (say) is 300 $ , The price falls to 200 usd next day . Now how does any admin of an exchanger manage to overcome losses ?
I think you are not familiar with the Exchange site, Its not the admin who will manage to fix these loss. Lets say, you and your friend (x) traded at the same time. He X put an order to sell his bitcoin at 300, and you put an order to Buy bitcoin now this exchange will occur, If nobody, put an order of selling his bitcoin, you will never be able to sell your bitcoin at that order , because there is no order at that price.
He has asked about newyork and you are explaining to him all about denmark . See the post above yours , he has already mentioned the answer . I am still wondering if bob places his cryptomoney at exchange site making him look stupid, what can be the good way then ? Lets say bob has his 10 btc stored in any exchange, and btc price falls to 1 $ per btc . Now , how will another cryptocurrency treat btc ?
