4 ms·
The theft from Bitfloor was roughly half the total assets (most of the BTC, none of the USD) at the time. A fractional reserve of 50% is still many times highe
by jzwinck 14y ago
The theft from Bitfloor was roughly half the total assets (most of the BTC, none of the USD) at the time. A fractional reserve of 50% is still many times higher than what you'll find if you look in the vault of any regular bank in the US.
- slg 14y agoThat might be true, but the fact is that Bitfloor wasn't required to have anything on hand. Their reserve might have been 50% in that instance, but customers are putting their faith in Bitfloor to responsibly set and maintain a reasonable reserve rate. I find it ironic that people who distrust their local banks and government to that extent will put that much faith into a Bitcoin exchange.
- khuey 14y agoOn the other hand if bitfloor had no reserves you couldn't steal from them.
- illuminate 14y agoYou can "carry" out a great much more from a theft of virtual money than you can at any brick and mortar bank. A million dollars in bitcoin wallets versus ten thousand heavy, bulky dollars.