Bitcoin as the world's biggest game of hot potato: https://prestonbyrne.com/2017/11/26/the-bear-case-for-crypto-part-ii-fractional-reserve-marmot/ … @prestonjbyrne
Liquidity crunch catalyzed by any disruption in the price would cause a bank run.
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This means that an exodus from one exchange, in addition to spooking account holders at every other exchange, will make it pretty difficult to move BTC in or out of another exchange.
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Your rational action, as an account-holder of a non-imperiled exchange, is to a) immediately request a wire (yes, a wire) of your USD and b) bid as high as possible for a transaction to exfiltrate your BTC.
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This turns non-imperiled exchanges into imperiled exchanges, quickly. The technical term is "contagion" and the way to avoid it is *drumroll* "temporarily freeze withdraws."
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Seems about 50-70% of BTC is already off-exchange (if Twitter sentiment analysis is correct - YMMV).
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hahaha you have no clue what you're on about.
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I can see the bank run argument in general happening but wouldn't this specific case (which exacerbates the more general liquidity crunch) only happen if "holders" are keeping they BTC in exchange wallets which is generally accepted as a bad idea?
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Kinda makes HODL not so much a choice, but well, just how it is...? And is that why many of the big banks/etc haven't showed up to the party just yet? (not fast enough for them to have their computers have them jump out...)
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