This is terrible. Fat Cats on Wall Street will manipulate price through Naked Shorting...like they do Silver and Gold. Bitcoin is toast. Good thing there are thousands of legitimate Block Chain based Crypto Currencies and business models to choose from...
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That is a fear shared by many. The fear is that there will be more paper claims on an asset than there are actual assets. Basically diluting the supply. Which will negate one of the most appealing parts of bitcoin.