Rehypothecation May Be Common in Traditional Finance, but It Will Never Work With Bitcoin

Rehypothecation May Be Common in Traditional Finance, but It Will Never Work With Bitcoin

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To illustrate, the software industry has enjoyed the margins it does because of the inherent ease in replication of digital information: there’s essentially zero marginal cost to produce one additional unit of a digital product. Consequently, with music, movies and software, an entire digital rights management industry emerged with the internet to thwart free duplication of products.

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