Post
Topic
Board Service Discussion
Re: Stable exchange?
by
timerland
on 06/02/2018, 08:46:14 UTC
Bitcoin price might be taking a deep dive and we can just speculate about when a rebound will occur.

With this dip, how would exchanges fare? Would this cause exchanges to declare bankruptcy? Which of the top exchanges do you think, is stable and can withstand a really deep bitcoin price dive?

All exchanges do is simply provide a service where people are depositing and withdrawing from their platform. They handle the trades and all that and take a cut from each of the transactions that people take on their site.

They take on absolutely 0 forex risks if they are running a full reserve, which is what the exchanges are supposed to do.

The only reason why they would be bankrupt would be that they are running a fractional reserve, and have speculated on bitcoin going up without the permission of the users. Otherwise, they won't be affected whatsoever by the crash of bitcoin, apart from a dive in fiat revenue.