Don't you get it.
I shouldn't have to prove that they're fractional reserve.
They should have to prove that they aren't!
This is Eastern Europe and Bulgaria is one corrupt, poor country.
You really think these Bulgarian's are going to be sitting on millions and millions of bitcoins and aren't going to want to "borrow" or touch some of those coins. The temptation will be too great.
They could easily remove some of those bitcoin and then try to gamble with them, make more money, and then return the bitcoins safe and sound afterwards, and no one would ever no.
It it were my exchange and I had no over-site, I'd be tempted to do this myself.
Topic: [FUD] btc-e is also running fractional reserve - page 2. (Read 2098 times)
So you opened this thread with a FUD title with absolutely no proof?
Good job...
Good job...
No so terribly unreasonable given that thousands of people have accounts on these exchanges and have no proof that they arent goxing.
But, yes, it is speculation both ways.
Shame since the whole point to btc is to not have to trust and to rely on publicly visible consensus.
So you opened this thread with a FUD title with absolutely no proof?
Good job...
Good job...
What happened with mtgox is like Enron, it's not an isolated incident, it's actually widespread.
Btc-e.com is another exchange that is running fractional reserve, and ready to disappear with everyone's money at a moments notice.
Without an independent group of auditors, how do you know that bitstamp and blockchain.info aren't running thousand bitcoin deficits due to theft, loss, incompetence, etc?
You don't.
Until a bitcoin exchange/business passes an audit by an outside/independent body (and continues to do so at regular intervals), why should we assume anything but that this business is insolvent, running fractional reserve, or misappropriating funds in some other way?
Oh wait, we should just believe the business and take it at it's word.
Wallstreet has this type of problem even with tons of regulation and government bodies watching.
With bitcoin having none of this, it will certainly be even more widespread.
I'm not saying that government is the answer, but some sort of independent 3rd party bitcoin auditing service that will certify an exchange/bank as 100% solvent and not running fractional reserve is definitely needed.
Btc-e.com is another exchange that is running fractional reserve, and ready to disappear with everyone's money at a moments notice.
Without an independent group of auditors, how do you know that bitstamp and blockchain.info aren't running thousand bitcoin deficits due to theft, loss, incompetence, etc?
You don't.
Until a bitcoin exchange/business passes an audit by an outside/independent body (and continues to do so at regular intervals), why should we assume anything but that this business is insolvent, running fractional reserve, or misappropriating funds in some other way?
Oh wait, we should just believe the business and take it at it's word.
Wallstreet has this type of problem even with tons of regulation and government bodies watching.
With bitcoin having none of this, it will certainly be even more widespread.
I'm not saying that government is the answer, but some sort of independent 3rd party bitcoin auditing service that will certify an exchange/bank as 100% solvent and not running fractional reserve is definitely needed.
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