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How does the concept of "proof of reserves" apply to Bitcoin exchanges?

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"Proof of reserves" in the context of Bitcoin exchanges refers to the practice of an exchange proving that it holds the amount of Bitcoin that it claims to hold on behalf of its users. This proof is typically provided through regular audits or cryptographic proofs that demonstrate the exchange's Bitcoin holdings match its liabilities to its customers. By using this concept, Bitcoin exchanges can increase transparency and_

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