So they can’t create new BTC but they can loan it out and display to you that you have BTC balance when they don’t actually have it in their possession, just like banks. BTC in a centralised exchange on in a bitcoin bank is not real BTC. It does not have the same properties as BTC.
So they can’t create new BTC but they can loan it out and display to you that you have BTC balance when they don’t actually have it in their possession, just like banks. BTC in a centralised exchange on in a bitcoin bank is not real BTC. It does not have the same properties as BTC.