You are absolutely correct. But that doesn't really change anything. Placing your BTC in an exchange's wallet means you are trusting that exchange. I don't rea

You are absolutely correct. But that doesn't really change anything. Placing your BTC in an exchange's wallet means you are trusting that exchange. I don't really trust exchanges -- I still use them, but I never transfer extra BTC in, and I always transfer 100% of the BTC I buy into my wallet. After the Mt. Gox hack, it came out that many people were buying BTC and leaving it in Mt. Gox' wallet. That's a colossal mistake; there is simply no reason to trust anyone else to hold your BTC. Bitcoin exchanges will always exist and need to be secured. Bitcoin banks serve no purpose and should never exist.