Stupid idea huh? Well its happening, right now there could be hundreds of thousands of fake bitcoin changing hands. How can this happen, doesn't the blockchain make this impossible? Yes but they're not changing hands on the blockchain, they're being traded on the exchanges with no form of verification whatsoever, even the existence of those coins on the exchanges isn't verifiable. Would you sell me something if I all I did was say I had the coins to pay for it and you could claim them any time you liked? Thousands did just that with Gox and got burned.
Audits are a step in the right direction but the last audits where months ago, there's some exceptions but there shouldn't even be a need for them, trades should be settled every block into user controlled multisig wallets with timelocks in case of failure. The need for trust is eliminated with Bitcoin but the exchanges aren't operating that way, they expect users to trust them and everywhere that's happened throughout history its been abused.
Audits are a step in the right direction but the last audits where months ago, there's some exceptions but there shouldn't even be a need for them, trades should be settled every block into user controlled multisig wallets with timelocks in case of failure. The need for trust is eliminated with Bitcoin but the exchanges aren't operating that way, they expect users to trust them and everywhere that's happened throughout history its been abused.
This will probably be the future of bitcoin soon enough
