BTC - Get your Bitcoin (and crypto) off exchanges for Proof of Keys Jan. 3rd

in #bitcoin11 months ago

Get your Bitcoin off of exchanges for the annual Proof of Keys event

It's almost that time again.

When everyone in crypto should be getting their bitcoin off of exchanges to make sure the exchanges aren't swimming naked out there.

People shouldn't be storing bitcoin/crypto on exchanges in the first place, but especially not for this upcoming event.

This will be 2nd annual Proof of Keys event and it is slated to take place on January 3rd, 2020.

The movement was started last year by Trace Mayer in an attempt to keep exchanges honest.

(Source: https://bitcoinmagazine.com/articles/video-trace-mayer-on-proof-of-keys-sovereignty-and-bitcoin-privacy)

What is Proof of Keys?

The idea behind Proof of Keys comes from the "not your keys, not your bitcoin" ideals.

Though, it goes a step further.

Beyond just taking ownership over your holdings, the idea is for exchanges to prove that they actually can deliver your holdings.

There has been fear among many that exchanges often operate on fractional reserves, where they take customer assets and use them for other purposes.

The end result could be more liabilities than they have assets.

Something that would be catastrophic for the exchange's customers.

This Proof of Keys event is set up every year to make sure exchanges are trustworthy and continuing to operate honestly.

More about what it is can be seen in the video linked above.

Make sure to take possession of your Bitcoin on January 3rd!

This is a great time for the crypto community to band together and make sure that exchanges are continuing to operate in an honest and trustworthy manner.

If they are not, it likely is hurting the price of bitcoin (or other assets) as the true supply/demand economics are not being allowed to dictate prices.

Making sure they are not doing fractional banking or rehypothecation of assets helps in keeping prices where they 'should' be.

Stay informed my friends.

-Doc

Sort:  

Thank you for the information on this. I was not aware of this which makes a lot of sense.


Posted via Steemleo | A Decentralized Community for Investors

You got it.

Will be participating this year for sure. Do not have massive holdings but every bit helps

Posted using Partiko iOS

Yep it sure does. No real fireworks happened last year from this, but who knows, with more participation perhaps there will be some.

Resteemed

thanks for informing always great to follow you for regular updates in crypto space :) happy new year