Topic: Fake Bitcoin. - page 3. (Read 608 times)

Correct, besides due to the transparent nature of the Bitcoin blockchain it is possible to know how many Bitcoins each address holds.
An exchange could not claim or lie about having a sustantial quantity of Bitcoins because they would have no way to proof ownership of any address holding actual Bitcoins.

It is similar to what happens to Faketoshi, claiming to own some especific addresses but not being able to sign a message, if an exchange cannot sign a message from their alleged addresses, then they have no control over those coins, as simple as that.

Bitcoin cannot be printed, it isn't fiat, miners mine bitcoin and that is how new bitcoins are created. Clients can't withdraw clones or copycats of the bitcoin name to their private bitcoin wallets because the chains or network are different and can't work together, for example you cannot withdraw a wrapped bitcoin (wbtc) to your bitcoin wallet, it isn't bitcoin.

I suppose it's possible, but that would be a very risky move for exchanges. I mean, if an exchange starts "printing" bitcoins that it doesn't have coverage for, what happens if all its clients start withdrawing bitcoins to their private wallets?

There have been so many copycats of bitcoin and we have loads of them on centralized exchanges, when you look at their logo, it has little resemblance to that of bitcoin but i think only newbies are prone to fall a victim on wrong intended coin, some has their name branded eith a blend of bitcoin in it, but for the experienced users, they will always know the difference and identify the fake ones, that's why we strongly recommend the use of bitcoin only supported hardware wallets for the storage of our coins than using compromising centralized exchanges loaded with plenty shittys.

Anyone can create a token named 'Bitcoin' on a blockchain like Ethereum or BNB using smart contracts. But that's a different kind of scam. But the fake Bitcoin that I want to talk about, is actually created by some exchanges themselves!

Let me tell you. Bitcoin has a limited supply - only 21 million. Moreover, with the rise in popularity of BTC and the fear of hacking on various exchanges, more people than ever have started keeping Bitcoins in their wallets. As a result, the amount of BTC deposited in the exchanges is decreasing every day. Everyone knows that BTC is the most popular trading pair with any other crypto. But if the exchange doesn't have bitcoins, their business will go downhill.

That's why some exchanges have created their own coins with the same value as real Bitcoins by placing stablecoin collateral with bitcoin equivalents! Since exchanges do not immediately add crypto trading on their platforms to the blockchain, this leverage is difficult or almost impossible to capture. Because, common users don't understand anything.

But what is there to worry if the daily activities of the users are not disrupted? Of course there is. Exchanges that make fake bitcoins are really weak exchanges! And, trading in such an exchange is very risky! Therefore, it is better to do most of the transactions on the top exchanges according to the exchange rating on the Coinmarketcap site!