Comment: This tale is as old as time.....

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This tale is as old as time.....

It can be done with any commodity. It first played out as far as I'm aware with Gold. Once civilization advanced to the point coinage was replaced with certificates of gold then bankers had this same temptation. They began to lend out gold that they did not have. It was a calculated gamble that there would never be withdrawals more than the physical gold they really had.

The temptation is really great with Bitcoin. If an exchange gets caught with its pants down it can claim it was hacked and move on. Because it is not regulated there is no punishment for fraud, deceit, or outright theft. The good news is as the technology advances it will be very easy for anyone to audit an exchange. That will take a few more years.

The best thing to do is call the bluff of the exchange. sell or buy and then get your bitcoins or dollars out of there.

I'm highly suspicious of the very thing going on right now!
If it is legit, it will continue an upwards pattern that I think will astonish everyone and then slowly deflate to a reasonable and fair price. If it is not the crash will be equal to or greater than the blast off. My opinions of course.

“I’m fully diversified. I’ve got some under the mattress, some under the floor boards, some in the backyard.”