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A comment on China Bans Bitcoin Executives from Leaving Country, Miners “Preparing for Worst”. Parent comment
Cash on hand + Money people owe the bank >= Cash bank owes its customers.
If an exchange is operating in such a manner, this means that:
Cash + BTC on hand < Cash + BTC exchange owes its customers.
We don't call that a fractional reserve. We call it insolvency (And knowingly accepting new deposits in such an exchange is called 'Fraud.')
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Cash on hand + Money people owe the bank >= Cash bank owes its customers.
If an exchange is operating in such a manner, this means that:
Cash + BTC on hand < Cash + BTC exchange owes its customers.
We don't call that a fractional reserve. We call it insolvency (And knowingly accepting new deposits in such an exchange is called 'Fraud.')