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Comment Re:Gox used margin trading & fractional reserv (Score 1) 143

People deposited fiat money with MT Gox in exchange for Bitcoins, however MT Gox did not have enough Bitcoins in stock to give them out to all the people that bought them, so the Bitcoin denominated account balances at MT Gox were liabilities with limited assets to back them. They relied on the fact that most people would not withdraw their Bitcoins, therefore it was a fractional reserve system.

Comment Re:Gox used margin trading & fractional reserv (Score 2) 143

The difference between banks and MTGox is that while banks also use fraction reserve, the full liabilities are backed by assets in the form of loans they have handed out, and security on the assets of the borrowers such as property. At the time of the financial crisis, those assets and collateral were not sufficient to cover the fractional reserve liabilities, but at least they had something, unlike MTGox which had nothing to back the fractional reserve liabilities.

Comment Re:Premature much (Score 1) 302

I have a 9 year old Canon IP8500 on my desk for photo printing. Everyone is really impressed by the quality of the photos it produces, and I realised last year after replacing its worn-out printer head that it is getting pretty elderly.

The thing is, printers haven't really improved in the last 10 years. They now have ethernet and wireless/airprint as standard whereas my museum piece has USB only. But they a lot cheaper, a generally worse quality. If I had to replace my printer with something the same quality, I would have to get an A3 printer, which wouldn't fit on the available space on my desk.

The cost of consumables for my printer works out about the same as taking the photos to Snappy Snaps for printing, and the resulting quality is about the same, but I much prefer a trip to the paper drawer 4 meters away to a trip to Snappy Snaps in town during opening hours whenever I want to print photos.

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