Fractional reserve exchanges and other entities

[jubalix]

I get the "feeling" there is fractional reserve exchanges going on.....

eventually there may be runs on various exchanges, and when people realise there is not as much BTC as they thought there was, this will cause a mad scramble to actually buy BTC.

[windjc]

I get the "feeling" there is fractional reserve exchanges going on.....

eventually there may be runs on various exchanges, and when people realise there is not as much BTC as they thought there was, this will cause a mad scramble to actually buy BTC.

What are you saying? I do not understand.

[Hyena]

Fractional reserve banking with bitcoin is not as bad as with fiat money that can be printed to infinity

[ElectricMucus]

How about this: http://nerdr.com/bitcoin-exchange-scam-bitcoins-are-worthless/

[jubalix]

I get the "feeling" there is fractional reserve exchanges going on.....

eventually there may be runs on various exchanges, and when people realise there is not as much BTC as they thought there was, this will cause a mad scramble to actually buy BTC.

What are you saying? I do not understand.

I mean that exchanger of BTC for $ do not have as much BTC as they may have received in. Eg they sold it or use it for other purposes, but are no longer in possession. So when you come looking for your BTC there wont be enough to go around. So while everyone account at an exchange may say they have say 10 BTC, if they were to all try get their BTC at one the exchange only has enough to give out 50% to everyone.

This would cause a run on exchanges(s) and probably push BTC way up.

[jubalix]

How about this: http://nerdr.com/bitcoin-exchange-scam-bitcoins-are-worthless/

hmm that actually doesn't bother me much if someone says BTC is worth more and others will pay that price , its just a form of price discovery.

[MAbtc]

Someone page Ludwig von Mises!

[ElectricMucus]

How about this: http://nerdr.com/bitcoin-exchange-scam-bitcoins-are-worthless/

hmm that actually doesn't bother me much if someone says BTC is worth more and others will pay that price , its just a form of price discovery.

lol I thought as much. Then perhaps your scenario of the exchange selling their clients coins for extra cash and them continuing to use that exchange is some sort of price discovery too!

[jubalix]

How about this: http://nerdr.com/bitcoin-exchange-scam-bitcoins-are-worthless/

hmm that actually doesn't bother me much if someone says BTC is worth more and others will pay that price , its just a form of price discovery.

lol I thought as much. Then perhaps your scenario of the exchange selling their clients coins for extra cash and them continuing to use that exchange is some sort of price discovery too!

hmm maybe your right!!!!

[ElectricMucus]

then the readers can choose from the three following options:

[ ] jubalix theory is bullshit
[ ] nerdr interview is bullshit
[ ] both are bullshit

[Le Happy Merchant]

How about this: http://nerdr.com/bitcoin-exchange-scam-bitcoins-are-worthless/

Smells like bull, and that article is garbage.

Even if it were true, would it matter at all? With the price at .844?

[jubalix]

then the readers can choose from the following option:

[ ] ElectricMucus poll is bullshit

FTFY

[Bitcopia]

How about this: http://nerdr.com/bitcoin-exchange-scam-bitcoins-are-worthless/

Smells like bull, and that article is garbage.

Even if it were true, would it matter at all? With the price at .844?

We need more of this.

[1Pakis]

And back on the subject.

I get the "feeling" there is fractional reserve exchanges going on.....

eventually there may be runs on various exchanges, and when people realise there is not as much BTC as they thought there was, this will cause a mad scramble to actually buy BTC.

What are you saying? I do not understand.

I mean that exchanger of BTC for $ do not have as much BTC as they may have received in. Eg they sold it or use it for other purposes, but are no longer in possession. So when you come looking for your BTC there wont be enough to go around. So while everyone account at an exchange may say they have say 10 BTC, if they were to all try get their BTC at one the exchange only has enough to give out 50% to everyone.

This would cause a run on exchanges(s) and probably push BTC way up.

10% or less Fractional reserve doesn't cause a Bank run. Why 50% would cause a run on Exchange(s).
Also Banks are regulated and they often go below the advertised 10%.