[SOLVED] 1) According to U.C. Berkeley Law Professor Greg LaBlanc, what does | SolutionInn

11) According to U.C. Berkeley Law Professor Greg LaBlanc, regarding BitCoin, "If we use Bank of America, and Bank of America screws up, and loses our money, we can sue Bank of America. If I lose my USB, I have no on to blame, but myself, and I have nobody to sue, and there's no recourse, and so, what most people do is they take their private key, and they hand it over to an exchange or wallet. The most famous of which here in the United States is Coinbase. So, Coinbase, people think that if they have a Coinbase account, they have purchased bitcoin. This is just simply not true. When they initiate a purchase of bitcoin on Coinbase, Coinbase buys the bitcoin, and they give you an IOU for a dollar amount that is pegged to the value of bitcoin. So, you are not the owner of the bitcoin. Coinbase is the owner of the bitcoin, and that means that when you buy and sell bitcoin on the Coinbase exchange with other Coinbase customers, nothing actually happens on the blockchain, because Coinbase was the owner before, and Coinbase is the owner after. All they do is adjust their liabilities in their relational database, just like a traditional bank. So the vast majority of bitcoin held by bitcoin investors and speculators in the United States is held in some exchange, which means that these folds are not actually owners of the bitcoin, and they are not actually engaging in transactions that take place on the blockchain. So, they have essentially a depository relationship in the same way they would've a depository relationship with Bank of America, except that there's no __________ __________ . So, if Coinbase were to go bankrupt, all of the "owners" of bitcoin, their customers would just become __________ __________ like anybody else."