Exodus of money away from Exchanges is great for crypto
I was reading earlier that '5 major bitcoin exchanges see losses for the first time in 2 weeks'.
Digging into the detail a bit I saw that the exchanges in question (Binance, Bitstamp, Bittrex, BitMEX, and Poloniex) didn't actually lose money. Rather they had negative cash-flow. I.e. more money leaving the Exchanges than coming in.
🚨 24H BTC exchange on-chain flows:#binance: $20M in | $39M out#bitstamp: $17M in | $19M out#bittrex: $2M in | $3M out#poloniex: $991K in | $2M out#bitmex: $6M in | $16M out
— TokenAnalyst (@thetokenanalyst) August 12, 2019
See more at https://t.co/6AFFM1D63p
I see this as great news for the crypto ecosystem as it may be an indication that people are finally getting the message to not leave their money on exchanges.
With the investigation into BitMEX and the KYC issues of Binance, the risks are leaving funds on Exchanges is as relevant now as it ever was.
One of the key tenants of crypto is the ability to own and transfer value without the interference of third parties. This is completely negated by the current over-reliance by many on third parties (particularly Exchanges) to be custodians of their cryptocurrency.
The more people get used to owning their own wallets and holding their crypto the more healthy the crypto-space will be in the long run. Centralised Exchanges should be seen as a necessary evil for now... not long term bastions in the space.
Decentralised cryptocurrencies strive when people hold their own keys to their coins. When people transact as much as possible on-chain rather than on Exchanges.
The peer-to-peer security of crypto should not, in my view play second fiddle to centralised convenience.
Image by Lorenzo Cafaro from Pixabay
Hi
I think you make important points, a huge central tenet of crypto is owning your own keys! Which is ownership of your money. Add to this the ongoing risk of exchange hacks with loss of funds and now KYC leaks where people can be victims of identity theft due to exchange hacks and the reasons not to deal with exchanges except in brief anonymous fashion start to stack up and anonymous decentralized exchanges sounds increasingly like the best option.
Solid points. I hope people will learn and act to protect themselves.
Shortsegments
Upvoted!
Do not store your crypto tokens on exchanges. They get hacked all the time. Centralized exchanges do not provide you with your private keys. This means the crypto is stored in their wallets – hot or cold.
Safety is truly important in the crypto-world!
I share this views of actuality. I do think people should be responsible for their own Fate. I've seen so many people who's Cryptocurrency is locked away in so many exchange all in the name of third party security. In contrast I think it's definitely good for Crypto and blockchain because I think some people will seek solace somewhere else other than this exchanges.
Congratulations @nanzo-scoop!
Your post was mentioned in the Steem Hit Parade in the following category:
It's about time these exchanges were taken down a peg or two...
Good read and great points! Going to start and follow your posts. :)
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Thanks sir!
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