>>> case 2: Bitcoin price drops to $8,000
case 3: one of the exchanges canceled your order shortly after they were done.
case 4: the exchange refuses to pay you out for whatever reason they invent.
case 5: the exchange goes bust, either seized by the police, hackers or the owner outright left with all the money.
In all these cases. You are likely to loose 100% of the sum you invested.
https://bitcointalk.org/index.php?topic=291217.0
The bubble will burst - some people will make money out of this and a whole lot of others will lose.
Nah, for example in case 3 you don't lose your full capital. You just have either position open without hedging the risk whatever reason.
Case 4, case 5, for you to lose your full capital it has to happen for both exchanges.
There are risks and I'm not saying that it might make sense to take those risks, just saying that you are now giving equally wrong picture of the risks.