Annual January 3rd “Proof of Keys” Celebration of The Genesis Block! (#GotBitcoin?)
Trace Mayer: Get Your Bitcoin Off Exchanges in ‘Proof of Keys’ 2020
Bitcoin (BTC) could be set to disappear from exchanges en masse in two months’ time as the second annual Proof of Keys event takes shape.
In a Twitter post on Nov. 5, Proof of Keys’ organizer, Bitcoin Knowledge podcast host Trace Mayer, appealed to spread the message prior to the event on Jan. 3.
Mayer Challenges Bitcoin HODLers
Now in its second year, Proof of Keys challenges Bitcoin HODLers to take control of their funds and stop using trusted third parties.
Under the slogan “Not your keys; not your Bitcoin,” Mayer highlights the still frequent exchange implosions and seizures as an argument for investors to control access to funds themselves.
“A lot of people just don’t want people holding their own private keys and doing their own network consensus,” he said in a promotional video recorded for the 2019 Proof of Keys.
Participants Are Encouraged To Add Their Support As
part of their Twitter handle in advance. On Jan. 3, the date of the Bitcoin genesis block, they then withdraw all cryptocurrency funds from exchange wallets.
“Prove Trustworthiness And Consensus”
As Cointelegraph reported, novice cryptocurrency holders face a daunting task when selecting how best to store their wealth.
Even the best-known exchanges remain open to attack, while alternatives such as hardware wallets also continue to see mixed reviews as competition intensifies.
“This simple exercise costs little, perhaps a few transaction fees, yet proves possession and strengthens network consensus. Companies and exchanges must prove their trustworthiness and consensus,” part of Proof of Keys’ official website description explains.
HODLers of Last Resort
Proof of Keys:
Every January 3rd the Bitcoin community HODLers of Last Resort participate in a Proof of Keys celebration by demanding and taking possession of all bitcoins held by trusted third parties on their behalf.
By demanding and taking possession of their assets, individuals will learn real fast with blockchain proof whether they are part of the elite HODLers or not. Proof of Keys is the annual HODLer initiation.
What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.
Every year HODLers celebrate with a test of trust. HODLers test people, exchanges, corporations and other services. Get withdrawals limits ready. Plus, one can easily forget where small amounts of bitcoins are. Remember and find them. Most importantly, HODLers can test themselves.
On January 3rd HODLers everywhere celebrate Bitcoin by withdrawing all their bitcoins to wallets they control that perform network consensus and use best practices like the Glacier Protocol.
- Bitcoin Core for network consensus; who controls Bitcoin Core
- Armory for private keys
- Glacier Protocol for operational procedures
- Purism [a Purism complaint] for hardware
Play Stupid Games
Win Stupid Prizes:
Those who are ignorant of or ignore history are doomed to repeat it. Learn from the experience of others.
- Individual threw away hardrive with about 7,500 BTC
- Individual threw away iMac with about 50 BTC
- Individual imported about 335 BCH of private keys to scammy fork wallet
- Bitpay fraudulently labels consensus rule change an ‘Upgrade’
The signatories of this agreement wrongly believe that the currency created by adopting this contentious hard fork will eventually become Bitcoin. Therefore storing any BTC on services such as Coinbase, Bitpay and Xapo is strongly not recommended. By storing BTC on these services, you could find that after the hard fork, your BTC has been renamed to something else or replaced entirely with the new altcoin.
HODLers Who Celebrate
Proof of Keys:
Want to show your support? Perhaps add the [Jan/3➞₿🔑∎] to your Twitter? Or fill out the below short form.
And please help spread the word!
This simple exercise costs little, perhaps a few transaction fees, yet proves possession and strengthens network consensus. Companies and exchanges must prove their trustworthiness and consensus. Many HODLers have extensive war experience with BIP148, UASF, NO2X, etc.
You can consider Proof of Keys a combat readiness drill. Hopefully, it will help prevent further annoying skirmishes with those who despise individuals empowered with monetary sovereignty.
- HODLers risk nothing.
- HODLers do not trust.
- HODLers verify.
- HODLers are in control and can prove it on the blockchain.
You Think You Own Bitcoins?
Then join the HODLers of Last Resort and PROVE IT!
Remember, remember the 3rd of January! Please help spread the word.
Then on the 4th of January there can be a return to business as usual with renewed confidence based on proof of keys.
In assessing the soundness of their [trusted third parties], [HODLers] must therefore apply a stress test to all participants in the chain, and must contemplate a catastrophe loss occurring during a very unfavorable economic environment.
“After all, you only find out who is swimming naked when the tide goes out.” Warren Buffett
[HODLers of Last Resort] retain our risks and depend on no one. And whatever the world’s problems, [HODLer’s of Last Resort transactions will confirm].
Interviews about the
Proof of Keys Annual Celebration
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Companies that Celebrate
Proof of Keys
Individual HODLers Who Celebrate
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The Bit Generation
Armin Van Bitcoin
Crypto Scam Central
Saj le Great
Gary Palmer Jr.
Freedom of One
The Four Satoshis
Too Crypto To Quit
Hip Hop Crypto$
CashFlow Queen Kenet’ra
Crypto & Dirt
Eril Gün Ezerel
Book of Eli
Greg DaPonte Jr.
Gustavo Diaz de Leon
My Two Satoshis
Marcel Trader Bitcoin
Yuri De Gaia
Saj le Great
Sir Grant Fleming
Crypto Pura Vida
Just Learn Bitcoin
BTC Daily News
Dragon On Crypto
Crypto Revolution FR
Savage Santa Miner
Bits and Tokens
‘Don’t Leave Your Coins In Exchanges,’ Says Crypto Entrepreneur Who Lost All His Assets
Speaking today at BlockShow Asia 2019, Genesis Block HK co-founder Clement Ip shared a negative personal experience during a panel on how Asian trading firms make profits. His company is a blockchain venture capital firm, crypto quant hedge fund, and mining company focused on investing in blockchain projects.
Sharing the stage with two other speakers — Kyle Davies of Three Arrows Capital and Joshua Ho of QCP Capital — Ip came out with his sad story. He said he lost “a lot of coins” due to an exchange hack, and his takeaway lesson was clear:
“Don’t leave your assets on exchanges. Don’t be lazy. I’ve been into it and learned a good lesson.”
During the same panel, Davies and Ho also discussed crypto regulation in Asia, how it might affect the market, and how it will affect the crypto ecosystem at large. “Regulation in Asia has been a move in the right direction so far,” said Davies.
Exchange hacking is nothing new to the crypto ecosystem. Some of the biggest companies in the space have faced issues here this year, including market leader Binance.
Not Your Keys: 92% of Institutional Investors Keep Crypto on Exchanges
Cryptocurrency institutional investors overwhelmingly keep their wealth on exchanges despite the inherent security risks, new data claims.
Compiled by cryptocurrency exchange Binance on Nov. 22, a survey asked 76 institutional investors who used its platform about their trading habits.
Exchange Storage “Most Popular Choice”
The survey was part of Binance’s Institutional Market Insights research, which is now in its second edition.
Among the most surprising results was that 92% of participants chose to keep their crypto — Bitcoin (BTC), stablecoins and others — with trusted third parties, and not under their own control.
The figure dwarfs much safer alternatives such as hardware wallets and other cold wallets.
“Exchanges remain as the most popular choice for cryptoasset storage amongst our institutional and VIP clients at 92.1%,” Binance summarized. Researchers added:
“When moving to self-storage, cold wallets are the second most favored choice, given their improved safety and control. Third-party custody services were the least popular option at 2.6%.”
The 76 investors cannot be said to have significant exposure in terms of capital — over 50% had total crypto holdings of under 10 units of a coin. 10 BTC currently equals around $72,000.
Demands to take back control of crypto
As Cointelegraph reported, investors face significantly increased risk of loss and theft of coins if they remain in wallets to which they do not control the private keys.
Exchanges, including Binance, continue to see hacks this year, while regulatory scrutiny can also see funds locked up without notice until an account owner provides personal identity data.
Efforts to make investors aware of the need to control their money are mounting. On Jan. 3, the second annual Proof of Keys event will challenge all Bitcoin holders to remove their funds from third-party wallets.
The brainchild of advocate Trace Mayer, preparations for the move, which coincides with the anniversary of the Bitcoin genesis block, are already a common sight on social media.
Exchanges Hold More Bitcoin Than Ever As Coinbase Wallet Nears 1M BTC
United States cryptocurrency exchange Coinbase will soon hold a million Bitcoins (BTC) in its cold wallets in a controversial first for the industry.
According to data from news and information resource Longhash released on Jan. 23, Coinbase’s cold wallets contained around 970,000 BTC ($8 billion) as of Jan. 1.
Coinbase Weeks Away From 1 Million BTC
If current growth continues, the company will reach the 1,000,000 BTC mark by February.
The trend underscores growing tendencies to interact with Bitcoin via exchanges, with the Coinbase figures including both private and institutional investors.
As Cointelegraph reported, recent attempts to assess institutional habits when it comes to Bitcoin storage already firmly pointed to exchanges being investors’ chosen method.
Now, despite the myriad exchange hacks and other dangers of trusting third parties with their cryptocurrency wealth, it appears that consumers in general still prefer not to control their coins themselves.
“More individuals and institutions need to learn how to self custody,” Tales from the Crypt Podcast host Marty Bent summarized in an analysis of the Coinbase figures on Thursday.
Proof Of Keys Falls On Deaf Ears
With 30 million users registered since launch, Longhash notes that Coinbase is by far the exchange with the largest Bitcoin holdings, but the majority of major trading platforms are seeing their balances increase.
Cryptocurrency proponents have long been irked by the phenomenon, which flies in the face of Bitcoin as sovereign money — trusting someone else with one’s wealth is the equivalent of endorsing central banking.
A dedicated effort to inspire Bitcoin holders to remove their coins from exchanges and place them in wallets to which they control the private keys is now in its second year.
Despite the publicity effort behind Proof of Keys, however, analysis of exchange wallets, which form several of the richest Bitcoin addresses in the world, shows that the most recent event on Jan. 3 did not spark mass withdrawals.
“Coinbase’s apparent dominance and steady growth may be because it attracts a large share of long-term/institutional investors, who are less concerned with short term price swings,” Longhash added in a suggestion that institutions trust exchanges with custody.
People Are Removing The Most Bitcoin From Exchanges Since 2018 Bottom
Exchange reserves hit an 18-month bottom while miners keep selling despite lower revenues after the halving.
Bitcoin (BTC) is failing to retake $10,000 due to a fresh wave of miner selling, fresh data suggests ten days after the halving.
Compiled by monitoring resource CryptoQuant, the figures show that over the past five days, combined outflows from BTC mining pools spiked 600% — from 1,066 BTC to 7,426 BTC on May 20.
Bitcoin Miners Sell Into $10,000
The change mimics that seen in the week before the halving on May 11, when miner outflows increased from around 2,100 BTC to a high of nearly 5,000 BTC on May 10.
CryptoQuant’s data also confirms a correlation between increased miner selling and Bitcoin price bottoms.
Sales in the week before the halving coincided with Bitcoin’s “pre-halving dump” of over $1,200, while this week also saw negative price performance — from $9,950 on May 18 to press time levels of $9,340.
Sustained offloading would have a negative knock-on effect on Bitcoin price growth, slowing the upward trend to keep markets more averse to five figures.
Exchange Reserves Keep Plummeting
Beyond outflows, meanwhile, change is afoot on exchanges. According to CryptoQuant, total exchange holdings fell dramatically on March 12 during Bitcoin’s crash but kept falling as the price recovered.
As of Wednesday, reserves across 17 major exchanges totaled 1.18 million BTC — the lowest value since November 2018. At that time, BTC/USD traded at near its lows of $3,100.
A lack of interest in trading Bitcoin delivers clear signals on market sentiment, but the change in correlation with price-performance puts the current situation at odds with previous behavior.
A Record Number of Bitcoin Were Recently Withdrawn From Exchanges
On July 8, a record number of Bitcoin were removed from custodial exchanges, with Coinbase leading the charge.
July 8 set a year-to-date record for the number of net Bitcoin (BTC) withdrawn from custodial exchanges. The onslaught was led by Coinbase.
A Bullish Sign?
Yesterday, 20,660 more Bitcoin were removed from exchanges than deposited according to data from Glassnode. This represents 2020’s biggest daily outflow of Bitcoin from exchanges — a behavior pattern that is typically considered bullish.
Coinbase Leads The Exodus
Interestingly, Coinbase alone experienced a net outflow of 20,787 BTC — higher than the total for all exchanges. Discounting Coinbase, other tracked exchanges had a small uptick.
Although Coinbase experienced negative Bitcoin outflows, it recorded almost a thousand more deposits than withdrawals. Since overall, it experienced negative outflows, this means that the average withdrawal amount was higher than the average deposit amount. It is possible that the average withdrawal amount was skewed by one or more large withdrawals made by its custodial clients.
Regardless of the cause behind this latest Bitcoin outflow, the trend towards users removing their assets from custodial exchanges continues.
Bitcoin Held by Exchanges Drops To 2019 Bull-Run Levels, Demand Rising
Bitcoin balances on major exchanges drop to levels not seen since last summer’s bull run as demand and BTC price are on the rise.
As July comes to a close, the amount of Bitcoin (BTC) held by major cryptocurrency exchanges has reached its lowest level since late May 2019. At that time, Bitcoin’s price was around $8,000 before continuing toward its 2019 high of $12,967 on July 11, 2019.
Roughly 10% Of Bitcoin Held By Exchanges
The Bitcoin balance held by major exchanges has been dropping significantly since mid-March 2020 following the Black Thursday crash on March 12 and subsequent recovery.
There are 2.64 million BTC collectively held on exchanges as of July 29, according to data from Glassnode, a market and on-chain analytics resource. Meanwhile, Bitcoin’s price continues to climb and recently hitting a yearly high of $11,400
Lower Selling Pressure Plus Tether Inflows
Additionally, markets analytics firm, Arcane Research, noted that decreasing balances on exchanges suggest users are showing more interest in holding their Bitcoin for the long term by withdrawing their BTC from exchanges to control their own private keys directly.
This trend means less selling pressure from BTC holders and comes just two months after the 2020 halving that reduced the amount of newly mined Bitcoin in half.
Coupled with the recent increase in Tether (USDT) exchange inflows, which have reached their 2020 high yesterday, and overall supply that’s now over $10 billion, the number of digital dollars waiting on the sidelines to potentially buy BTC is bigger than ever.
Institutional And Retail Interest In Bitcoin Returns
Bitcoin has been looking increasingly attractive lately given its store of value attributes in the face of the inflating U.S. dollar. With yet another COVID-19 stimulus package and what seems to be an overheated stock market, many traders are now seeking the safety of hard assets such as gold and increasingly Bitcoin.
Specifically, institutional interest in Bitcoin seems to be picking up at lightspeed as both Bakkt and CME futures have posted record numbers for two consecutive days in volume and open interest. Additionally, Grayscale has added another $1 billion to its funds in just 11 days, making the total AUM over $5.1 billion across their entire family of products.
As for the retail market, records have also been broken as Deribit, the leading Bitcoin Options exchange, posted record volumes on July 27 with $527 million in traded Bitcoin options.
Therefore, Bitcoin may be finally ready for another major bull market cycle as the supply of Bitcoin on exchanges decreases at the same time as retail and institutional interest appear to be picking up.
This confluence of bullish factors has led to numerous bullish forecasts from industry experts with some even predicting that this new bull cycle may be much bigger this time around.
“The next Bitcoin bull run will be dramatically different,” said Gemini founder Cameron Winklevoss on July 29.
“Today, there’s exponentially more capital, human capital, infrastructure, and high-quality projects than in 2017. Not to mention the very real specter of inflation that all fiat regimes face going forward. Buckle up!”
Bitcoin Whales Bought The Dip, Data Shows As $1.2B Leaves Exchanges
Investors are in no mood to sell as the number of Bitcoins held in exchange wallets “falls off a cliff” this week.
Bitcoin (BTC) exchanges lost 100,000 BTC during the weekend’s price crash, data shows — and that’s a bullish sign.
Figures from on-chain monitoring resource CryptoQuant on Aug. 5 tracking exchange balances show a dramatic drop occurring just after BTC/USD shed $1,200 in minutes.
BTC Exchange Reserves Hit Major Lows
Prior to the turbulent weekend’s trading, Bitcoin balances on exchanges totalled approximately 2.49 million BTC ($29.2 billion). Afterwards, the ledger fell to 2.39 million BTC ($28 billion) — the lowest ever recorded by CryptoQuant.
According to popular analyst Cole Garner, the change is yet another hint that the overall mood among investors is extremely optimistic.
“The amount of #Bitcoin held on exchanges just dropped off a cliff,” he wrote on Twitter on Thursday.
“It happened two days ago – whales bought up the selloff. $BTC flowing out of exchanges is *bullish*”
As Cointelegraph reported, decreasing numbers of coins held on exchanges suggests that investors plan to hold BTC, not sell or trade it at short notice. Garner agrees.
“The only reason to take them off exchange is because you intend to not sell them anytime soon,” he added.
Binance May Need Fewer Hot Wallets
Whales — those holding conspicuously large amounts of Bitcoin — seemed to have anticipated the pullback far earlier, as coins made their way back to exchanges a week earlier.
Commenting on the trend, CryptoQuant offered an alternative but no less bullish explanation involving major exchange Binance.
“68101 BTC transferred from Binance to a newly created wallet, and not clear whether it’s their new cold wallet or the 3rd party custody,” the firm responded to Garner.
“Even if it’s Binance’s, it could be a bull signal since Binance decided to reduce the portion of hot wallets in charge of user withdrawals.”
BTC/USD was heading towards $11,800 at press time, as the remnants of the crash dissipated and $12,000 became a target once again.
Earlier this week, Cointelegraph Markets analyst Michaël van de Poppe suggested that the next correction may be the final opportunity to buy BTC at a discount.
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