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If the exchange rate goes to zero or undefined then you need infinite Bitcoins to buy a bag of weed. People who are doing trade in BTC are relying on the exchanges to set an exchange rate.



> If the exchange rate goes to zero

Users would switch to an exchange in a different jurisdiction before the price ever hit zero.

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The theory is that the top N exchanges would be taken out in a simultaneous raid (and the US can reach many jurisdictions, just ask Kim Dotcom) and the remaining tiny exchanges would either voluntarily shut down to avoid prosecution or would collapse under the volume. If the raid was on a Friday people would be unable to transfer money into exchanges until Monday, giving time for the price to drop.

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There are 30+ exchanges in two dozen countries that would benefit indirectly from other exchanges being taken down.

The notion that these exchanges would shut down voluntarily just when things are looking up for them is ridiculous.

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