September 20, 2018
I am addressing my views on the argument that bitcoin is less susceptible to manipulation. Unfortunately, the argument does not seem to address one simple fact. Most spot trading on Bitcoin is done on exchange platforms. What people are actually trading on these platforms is basically an entry on a ledger that is separate from the Bitcoin blockchain ledger. It is possible that the exchange itself could be running a fractional reserve, either due to BTC lost through "hacking", or misappropriation of funds. It is also possible for a bitcoin exchange to engage in trading of BTC, which is not represented by real BTC in their various wallets or cash reserves in their bank accounts.