thedragonslayer

For how powerful we announce bitcoin/blockchain and its possibilities, the faultiness lies in the exchanges and that is my biggest con with Bitcoin

What if Coinbase is the one buying large amounts of bitcoin? Then using reserves so they can buy/sell on both sides. See where it gets risky?

Yes but what is the % of withdrawls? I know most U.S. members transfer from the exchanges over to Coinbase to withdrawl so they need them eventually

I'm with you ethagknight. Look at my comment below. I think it's a different ballgame at these prices, counting even more on coinbase that they are doing the rational things.

I find this hard to believe that coinbase is doing this with no regulation. I don't know if you all saw what happened to Full Tilt Poker, look it up. I'm afraid something like that could happen to coinbase. FTP got an influx of deposits and used that to fund players for when they withdrew. FTP was using the fund pool for other reasons and pocketing some of it, while still being able to payout players. The day came the gov't shut down the site but the company did not have the funds to pay back the players.

Now this might be different because bitcoin is what it is this is, while you control your wallet and this occurs more like a stock market rather than full tilt poker. Still I'm somewhat skeptical because coinbase could be doing something more complex to where they take on risk. Just my opinion, have to research more but this is a thread I was looking for.