What proof we have that prices are not all fake

[Kolique]

Hello,

I've a serious question about exchanges.

What proof do we have that all current exchanges are not creating fake Bitcoin inside their own ecosystem.
What securities have we that we wont have a MtGox number 2 ?

I mean, there is (maybe I'm wrong about that) no transparency on exchange about the amount of Bitcoin they have, so It would be possible that they sell Bitcoin they don't have hoping that people will let them in their platforms and not withdraw them.

In a such case, all crypto-currency prices would be faked by fake Bitcoins issued by the exchanges and this kind if though are really scary ...

If someone have more informations I would appreciate. I'm not saying crypto is a scam, just wondering if we have some securities or surveillance to avoid a new MtGox scam

Thank you

[OmegaStarScream]

Some exchanges hot wallets are known to the public as transaction are being received and sent there but you definitely can't know anything for sure as we don't know If the amount they have covers what the users are holding in their platform. It's just another reason on why people should use decentralized exchanges. I can't say that the price is fake because for that, we will need to have multiple exchange doing this. As for avoiding what happened with Mt.gox then one should just make sure he's in full control of his private keys. Basically, trade and withdraw instantly.

[reflector]

Hello,

I've a serious question about exchanges.

What proof do we have that all current exchanges are not creating fake Bitcoin inside their own ecosystem.
What securities have we that we wont have a MtGox number 2 ?

I mean, there is (maybe I'm wrong about that) no transparency on exchange about the amount of Bitcoin they have, so It would be possible that they sell Bitcoin they don't have hoping that people will let them in their platforms and not withdraw them.

In a such case, all crypto-currency prices would be faked by fake Bitcoins issued by the exchanges and this kind if though are really scary ...

If someone have more informations I would appreciate. I'm not saying crypto is a scam, just wondering if we have some securities or surveillance to avoid a new MtGox scam

Thank you

I am not sure whether they holded perfect value as mentioned marketcap information sharing sites. You need to check the bitcoin value increased in the market and at the same time whether the marketcap of any exchange also increase or not. Still some scammy sites are there. You can just careful to check the legitity with the users who are using it for long time.
If you bother about the MTGox you can use the Wavesdex decentralized exchanges like above Omega mentioned.

[darklus123]

It is indeed really hard to determined every single exchanges that are currently circulating in the industry. Even the known exchanges can still be a part of scamming. I don't know if this will work but you can try to search the address of where are you going to deposit your amounts.

[Kolique]

Thank you for your responses.
I'll use more the decentralized exchanges now. But most of the time they don't have high volume :/

[TheQuin]

Thank you for your responses.
I'll use more the decentralized exchanges now. But most of the time they don't have high volume :/

It really depends on what you are using it for. If it is just the occasional purchase to withdraw then volume doesn't really matter. If you are an active day or swing trader then you will be at a big disadvantage using an exchange with low liquidity.

The big difference between now and when Mt. Gox happened is that there are many more large exchanges so even if one was faking numbers it wouldn't have the same effect on the whole market. Back then Mt. Gox was the market.

[SyGambler]

Thank you for your responses.
I'll use more the decentralized exchanges now. But most of the time they don't have high volume :/

well let's face it , these days with the current decentralized exchanges it's really hard to professionally  trade  but maybe in future we will see good ones with good volume and platform
your concerns about exchanges are legit , there is always risk when you leave your funds there and they may selectively scam some members like bittrex
but using them with cautious should minimize the risk

[Kolique]

As i'm not a day trader or a trader at all but more a holder I'll more use decentralize app in the future then !
In that way I'm sure I'm not trading on scammy plateforme.
I also read an article (could not find it again) about downtime of exchange in major drop of Bitcoin like they can't afford people to take their money back, but it's only speculation I don't want to fuel the complots theories.

I think we as user should from now start to educate more people about these important issues and also they will lead to an higher decentralization what blockchain is all about