> Wouldn't it become similar to a typical bank run
Yes and no.
User behavior drives the market price, certainly. But "bank runs" are only bad because of fractional reserve.
When the bank essentially loans out 80-95% of their assets in order to create more loans/credit (thereby creating $4-19 in new credit for every $1 in reserves), the run can empty reserves and there is pressure for the bank to call in loan repayments early.
BitCoin exchanges (in their core exchange role) don't create credit. They simply convert one currency into another. If an exchange also lends (so users can buy cryptocurrency "on margin"), it is acting in another role, one which is susceptible to "a run no the bank".
Yes and no.
User behavior drives the market price, certainly. But "bank runs" are only bad because of fractional reserve.
When the bank essentially loans out 80-95% of their assets in order to create more loans/credit (thereby creating $4-19 in new credit for every $1 in reserves), the run can empty reserves and there is pressure for the bank to call in loan repayments early.
BitCoin exchanges (in their core exchange role) don't create credit. They simply convert one currency into another. If an exchange also lends (so users can buy cryptocurrency "on margin"), it is acting in another role, one which is susceptible to "a run no the bank".