If you're worried about Bithumb, look at Samsung Securities. I'll show you who's more "out of the woods."
The market seems to be buzzing about the Bithumb incident, claiming it's the end of Bitcoin. But this isn't just a cryptocurrency issue; it's an incident that exposes the fundamental vulnerabilities of the modern financial system. I'll summarize it with facts, so don't be fooled.
1. Stock accounts are actually just "digital ledgers."
When we buy Samsung Electronics stock, we don't bring home paper securities.
Book transactions: The stock numbers displayed on a brokerage app are merely digital numbers recorded in the brokerage's database. Systematically, it's no different from trading Bitcoin on an exchange.
Speed and efficiency: Transferring physical stocks or coins every time would be prohibitively slow. That's why brokerages and exchanges only change internal ledger numbers. In other words, what you're seeing isn't a real asset, but a promise (a bond) from the brokerage or exchange that "we'll convert it into stocks or coins later."
2. Samsung Securities Incident = The Origin of Ghost Bits in the Coin Market
Some people are saying, "Coins have no foundation," after the recent Bithumb incident, but far worse things have happened in the stock market.
Memories of Ghost Stocks: In 2018, Samsung Securities mistakenly issued 1,000 shares instead of a 1,000 won dividend, resulting in 2.8 billion non-existent shares (approximately 112 trillion won) being recorded on the books.
Size of the Bithumb Ghost Bits: The Bithumb incident involved 620,000 BTC, worth approximately 60 trillion won at market value. In terms of sheer size, the stock market leaders in 2018 were far more aggressive in printing the fake shares.
Naked Short Selling: Even employees sold the fake shares on the market. Just like in the stock market, a system crash can lead to the trading of "non-existent assets." The coin crash wasn't caused by a lack of value; the root cause was a computer error at a brokerage firm that relies on bookkeeping.
3. Bitcoin fraud? It's like saying, "Capitalism is doomed because a securities firm made a mistake."
Calling Bitcoin itself a fraud just because a crash occurred is like calling yourself an idiot.
Broker's Mistake vs. Asset Value: Did Samsung Electronics fail because Samsung Securities had a crash? No. It's the broker (exchange)'s poor bookkeeping, not a defect in Bitcoin (the asset) itself.
4. What if the exchange deliberately commits fraud? (Seatbelt)
You might ask, "What if the exchange deliberately inflates the numbers?" But that's as unlikely as Samsung Securities deliberately inflating its stock price and then running away.
Spot Reserve Ratio: According to the Virtual Asset User Protection Act, domestic exchanges are required to keep at least 80% of their customers' coins in physical, internet-disconnected cold wallets.
Monitoring and Punishment: Now subject to 24-hour audits by external accounting firms and oversight by the Financial Supervisory Service. Especially, if the ill-gotten gain exceeds 5 billion won, the maximum penalty is life imprisonment, so there seems to be no reason for first-tier exchanges to take such a gamble.
Summary
Exchange numbers are just bonds; the real Bitcoin resides on-chain.
The stock market, too, operates on the same underlying accounting figures.
Rather than doubting Bitcoin itself due to an exchange's mistake, it's wiser to see if the exchange is transparent about its Proof of Assets (PoR).
When others are complaining about the "coin's failure," we need to look at the root cause. The recent incident, too, with its recovery process (99.7% recovery and 110% compensation promised), is proof that the systemic defenses are working.
Don't be overly excited or depressed; just trust in the value of 1 BTC = 1 BTC.
ps. Why isn't my XPIN Stealth score increasing? ใ
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