What is a fake bitcoin? Is bitcoin cash or bitcoin gold a fake bitcoin or a shitcoin?
Fake Bitcoin (aka paper Bitcoin) is like paper gold. They are claims to BTC, an IOU to receive a specific quantity of BTC at any time. This is fine as long as the exchange has enough BTC to cover all claims, but FTX had far less BTC than the claims they sold to customers. Some argue that is a form of fraud, but that's a complicated topic I'm gonna skip.
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