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But do the trading apps actually transact? When I buy crypto in Robinhood, I really doubt that there is a dedicated transaction for me. Probably RH is buying ba

But do the trading apps actually transact? When I buy crypto in Robinhood, I really doubt that there is a dedicated transaction for me. Probably RH is buying batches of crypto and “distributes” their value equivalent to the buyers/sellers.

throwawayzRUU6f 6y ago
That's my understanding, too. On some (most?) exchanges, you're not really buying Bitcoin, you're buying a balance on that exchange - a right to withdraw or transact BTC at moment's notice. Given the amount of shady practices, it wouldn't surprise me if some exchanges operated on fractional reserves, being vulnerable to bank runs, a practice that many BTC adherents decry the traditional banking sector for.
xbar 6y ago
No. But what is the effect on BitCoin demand and the pressure to produce more BitCoins when you make that trade?