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0 points3pt141598y ago0 comments

The issue is that they do run fractional reserves, even if they aren't supposed to. Much like banks of the 1600s.

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They claim that they don't. If they do, that is a serious problem. Some of the exchanges have, but there is no evidence i'm aware of that points to any of the current major exchanges running a fractional reserve.

3pt14159OP8y ago

The issue is that once there is evidence there is a bank run. Mt Gox wasn't supposed to, but they did. And there are others out there that I hear rumours about having 5 or 10% of their reserves stolen from hot wallets. Sure it's fine if there is never a run, but it's worth pointing out that this is a real threat vector.

darawk8y ago

Ya, no argument from me there. It's definitely a threat. I just don't think it should be stated as fact that they do run fractional reserves without evidence of that.

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darawk8y ago

3pt14159OP8y ago

darawk8y ago

Ya, no argument from me there. It's definitely a threat. I just don't think it should be stated as fact that they do run fractional reserves without evidence of that.

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