3 ms·

Not sure what you mean by "what makes them equal". It is a supply and demand curve. Where they meet is the equilibrium. https://en.wikipedia.org/wiki/Supply_an

Not sure what you mean by "what makes them equal". It is a supply and demand curve. Where they meet is the equilibrium. https://en.wikipedia.org/wiki/Supply_and_demand https://en.wikipedia.org/wiki/Supply_and_demand Fractional reserve banking doesn't work with Bitcoin, unless you somehow trust a centralized party to always honor your withdrawal, or the coins never leave that internal system. Many exchanges could theoretically be running fractional reserve operations. But they are just risking themselves because once a rumour gets out, a bank run will occur and they will be exposed. Once you withdraw your coins from this trusted system, it is accounted for on the blockchain.

boomlinde 8y ago
> Where they meet is the equilibrium. You're not answering the question, just tautologically rephrasing it.
strypey 8y ago
> It is a supply and demand curve. Where they meet is the equilibrium. Academic economists like Steve Keen have totally demolished the classic supply/demand curve: https://unlearningeconomics.wordpress.com/2012/06/25/debunking-economics-part-i-demand-curves-can-have-any-shape/ https://unlearningeconomics.wordpress.com/2012/06/25/debunki... Here's a suitably scornful graphical version: https://www.youtube.com/watch?v=Y3wUqcapSU4 https://www.youtube.com/watch?v=Y3wUqcapSU4