/biz/ - Business & Finance

Bought another 20 Ark

Up to 60 atm. Aim is to get to 100 before $8 should be attainable in the next 3 weeks, hoping it doesn't shoot up upon mobile wallet release.

Here's an infographic I saved in 2012, never jumped aboard, knew about it since inception almost too.

>>773599
bump
dont let it die motherfuckers

I often discussed a topic which is generally underrated:

BTC Exchanges: their functioning and their way of using a fractional-reserve

On a daily basis BTC exchanges make several operations: most of them are likely to be outside the BTC Blockchain.
If you don’t know, the majority of those operations happen on a private account book which will be never shown on the Blockchain.

Let’s take an example to see how a BTC exchange works.

Let’s say I deposited 10 BTC on the Lovely Exchange and my friend Charlie did the same: both the operations are official BTC transaction registered on the Blockchain.

Now, Charlie and I can start trading on the private account book and whatever will do is not registered on the Blockchain but it’s kept inside the exchange.

The Lovely exchange owns our 20 BTC that can theoretically be used on the real Blockchain: until we don’t withdraw those BTC they belong to the exchange unless we decide to take them out.

But, right now, those BTC can be used on the Blockchain by the Lovely Exchange.

The value we see on the exchange is a virtual one: so long as Charlie and myself will keep those BTC on the exchange they’re not really ours. The real owner is The Lovely Exchange.
Now, if the Exchange is serious, wise and good enough will keep the 20 BTC there without using them: the day we will want them back we’ll do our withdraw and we’ll ask for them again.

But what if the exchange actually uses those BTC? What happens?
The exchange can start moving them on the Blockchain while Charlie and I keep trading them on the exchange itself.

This means that 40 BTC are moving: 20 real BTC and 20 virtual ones. What? The BTC can’t double! Can they?