There is nothing stopping Coinbase from printing more IOUs than they have in BTC. There's nothing stopping them from printing more IOUs than there are Bitcoin that exist.
This is the power that banks and CEXs wield. By printing out more IOUs, they are essentially creating new BTC even though that is not possible. These IOUs serve as BTC in and of themselves, and therefore affect the supply in the context of valuing the crypto currency on the free market.
This becomes a problem if too many people try to exchange their IOUs for the real thing at once (a bank run). Or if people find out you're doing this.
This is all completely irrespective of the actual cryptocurrency. You can do this with literally anything, but is especially doable with currency where people don't actually want the thing physically, they just want it in their name.
LMAO. You need to read up on Judaism.
There is nothing stopping Coinbase from printing more IOUs than they have in BTC. There's nothing stopping them from printing more IOUs than there are Bitcoin that exist.
This is the power that banks and CEXs wield. By printing out more IOUs, they are essentially creating new BTC even though that is not possible. These IOUs serve as BTC in and of themselves, and therefore affect the supply in the context of valuing the crypto currency on the free market.
This becomes a problem if too many people try to exchange their IOUs for the real thing at once (a bank run). Or if people find out you're doing this.
This is all completely irrespective of the actual cryptocurrency. You can do this with literally anything, but is especially doable with currency where people don't actually want the thing physically, they just want it in their name.
Lending out more than you have was started by the Jews.