22 days ago
Dave, the difference between Bitcoin on your laptop and Bitcoin on a centralized exchange is like the difference between gold in your hand and an IOU for gold in your bank. Gold is scarce. But someone could still issue two IOUs for one bar of gold. And that is what happened. t.co/77g0j3qmVh
Btw, I don’t think we should attack people for asking qs like this. Private keys are not a trivial concept. And the concept of being able to “download” your money locally to your computer just like you download a PDF is arguably the most novel part of crypto for most users.
Also, one important point. With proof-of-reserve, even a centralized exchange could demonstrate via cryptographic proof that it has 1:1 backing for all customer assets. Many exchanges are now doing this. t.co/DGIllBvMUc