>What happens if Coinbase cannot obtain replacement bitcoins at a price near what the insurance pays out? People lose their bitcoins. It's as simple as that. T

>What happens if Coinbase cannot obtain replacement bitcoins at a price near what the insurance pays out? People lose their bitcoins. It's as simple as that. That's a risk everyone should understand before buying. They might be compensated in some other way, like fiat, and then the insurance company either picks up the bill or goes under. Then it's just business as usual as far as bankruptcy goes. So yes, you have every reason to be wary of exchange solvency because of how new they are and how little support is provided to them by government and law enforcement compared to the banks. Every investor should understand that as critically as they understand how important their wallets are. >This whole system is just not ready for prime time. Yeah, it's one big experiment. I'm sure these problems were encountered before in economic history, but it seems like they are repeating a bunch of blunders within a short time frame, which to me, smells of manipulation (Satoshi probably didn't invent it to just manipulate people)