Post
Topic
Board Service Discussion
Re: What is your idea about fractional reserve practice at bitcoin exchanges?
by
Timo Y
on 21/08/2014, 15:25:09 UTC
Of course not, but the question is what you can do to prevent them from creating too much volatility in market?

Educate people to avoid exchanges without proven reserves.

As long as people are aware that these exchanges are doing fractional reserve, the selling of fractional reserve bitcoins should not affect the bitcoin price. Real bitcoins will trade at a higher price than bitcoin IOUs.