One wonders if behind the whole initiative is actually one of the big crypto exchanges that want to create a sense of security for their clients by convincing them that they really own their Bitcoin (altcoins) for at least one day.
Could be. Don't want everyone trying to withdraw their coins on some random day when the exchange is not prepared for it. Better to have one day a year they can prepare for.
Topic: Annual January 3rd Proof of Keys Celebration of the Genesis Block - page 2. (Read 292 times)
January 03, 2022, 07:41:05 AM
January 03, 2022, 07:35:39 AM
A handful of users come along today and withdraw all their bitcoin from the exchange
Clearly this cannot work unless a huge majority of the users withdraw. And even then, we don't know how many died, or lost or abandoned the accounts.
The only way to do anything in the matter is in big numbers. Vires in numeris.
Even if every single person withdrew all their coin today (which will never happen), the exchange can just borrow bitcoin for the 24 hours needed, repay it all the next day, and continue being insolvent.
If the number of people withdrawing is huge, they'll withdraw from all services and there may not be options to all of them get a loan. There won't be enough lenders available.
However, we both know that this is wishful thinking. And the actual proper way is:
The whole thing should be changed to a day of "Not your keys, not your coins" awareness.
January 03, 2022, 07:32:13 AM
Yeah, people should keep their bitcoin in their own wallet, of course.
But some people will just not do that for various reasons and you won't change their minds. For them, it's better to withdraw temporarily to make sure the companies actually have the coins.
But some people will just not do that for various reasons and you won't change their minds. For them, it's better to withdraw temporarily to make sure the companies actually have the coins.
January 03, 2022, 07:16:07 AM
It could prove whether the exchanges/custodian services still have all those coins.
It doesn't though. Let's say an exchange has had 100,000 BTC deposited by customers over the last year, but they've decided to invest 90,000 of that in various risky investment vehicles for their own profit while the customers assume the risk. They only keep 10,000 BTC in their wallets. A handful of users come along today and withdraw all their bitcoin from the exchange, which totals 5,000 BTC. The exchange fulfills those withdrawals without issue, and then tomorrow, the customers send that combined 5,000 straight back to the exchange, erroneously believing their bitcoin are safe and the exchange is solvent.Even if every single person withdrew all their coin today (which will never happen), the exchange can just borrow bitcoin for the 24 hours needed, repay it all the next day, and continue being insolvent.
One wonders if behind the whole initiative is actually one of the big crypto exchanges that want to create a sense of security for their clients by convincing them that they really own their Bitcoin (altcoins) for at least one day.
Could be. Don't want everyone trying to withdraw their coins on some random day when the exchange is not prepared for it. Better to have one day a year they can prepare for.The whole thing should be changed to a day of "Not your keys, not your coins" awareness. A temporary withdrawal from exchanges proves nothing.
January 03, 2022, 06:50:56 AM
I really wish they change this part which suggest people to return their coin to custodial service to only doing it when it's necessary (e.g. selling BTC).
One wonders if behind the whole initiative is actually one of the big crypto exchanges that want to create a sense of security for their clients by convincing them that they really own their Bitcoin (altcoins) for at least one day. The only thing that would be logical is to warn crypto users every day that the only correct way to store your coins is a non-custodial wallet - just the way you do with your avatar and personal text.
January 03, 2022, 06:32:11 AM
It is important to keep your Bitcoin safely. It's your private key.
- https://notyourkeys.org/
- In order to own private key, you must use non-custodial wallets.
- Recommended wallets
- Verify wallet first, before using it to store your Bitcoin. Because if you download a fake wallet and use it to store your Bitcoin, your Bitcoin will be stolen
- Back it up safely and offline. You should have multiple backups and have methods to keep them safely from water, fire, physical damages, etc.
January 03, 2022, 06:27:08 AM
Withdrawing your coins from an exchange for a single day and then sending them straight back to the exchange proves nothing. The majority of users will not do this
It could prove whether the exchanges/custodian services still have all those coins. I expect that a surprisingly high number of them won't.
But indeed, nobody will do that, since it means withdrawal fees, much higher than the network fee. And it means quite a risk since many have awful security setup on their device hence it's worse than the risk to keep the funds at the custodian.
People should - especially this day - be told to withdraw forever (not temporarily) to their own safe wallet all the funds they don't need to be kept in others' custody. And from here the obvious explanations derive - about custody, about safety, about own wallet...
January 03, 2022, 06:03:58 AM
This day encourages everyone to withdraw bitcoin into your own wallets, even if it's temporarily, to make sure that your funds are still safe and that you can eventually withdraw it (some companies assume you won't be moving those bitcoins until it's too late).
Emphasis mine. This is why this day is pointless.Withdrawing your coins from an exchange for a single day and then sending them straight back to the exchange proves nothing. The majority of users will not do this, and so exchanges can quite happily continue to operate a fractional reserve, scam, insolvency, or anything else behind the scenes, and still process your withdrawals. Even if a large number of users did do this, the day is publicized and exchanges can prepare for it in advance, and then go straight back to the same shady behavior the very next day.
All this does is give people a false sense of security that their coins are safe. If you want your coins to be safe, they need to be in your own wallet permanently. Anything else is a risk.
January 02, 2022, 10:09:13 PM
I think this is the first year of it's celebration:
https://bitcointalksearch.org/topic/tomorrow-is-proof-of-keys-day-5092198
And as far as I can remember, it was conceptualized by Trace Mayer (https://twitter.com/tracemayer?lang=en). And his concept was for us to reclaim our "monetary autonomy".
Anyhow, I don't have BTC in any exchange though, it was not a good practice for me. And we know that it is really not advisable because of the risk involved.
https://bitcointalksearch.org/topic/tomorrow-is-proof-of-keys-day-5092198
And as far as I can remember, it was conceptualized by Trace Mayer (https://twitter.com/tracemayer?lang=en). And his concept was for us to reclaim our "monetary autonomy".
Anyhow, I don't have BTC in any exchange though, it was not a good practice for me. And we know that it is really not advisable because of the risk involved.
January 02, 2022, 08:11:16 PM
3rd of January is the annual proof of Keys Day:
https://www.proofofkeys.com
This day commemorates the genesis block, 3rd of January 2009, the day that Bitcoin was born, by making sure you own your bitcoin. Always remember:
If you have bitcoin stored at a company wallet(exchanges, banks, or any company), then you simply don't have 100% ownership of them. This day encourages everyone to withdraw bitcoin into your own wallets, even if it's temporarily, to make sure that your funds are still safe and that you can eventually withdraw it (some companies assume you won't be moving those bitcoins until it's too late).
Having your bitcoin controlled by your own wallet gives you a lot of benefits, and most importantly, it makes you realize that you don't need any bank or other institution to use money.
Happy proof of keys day!
https://www.proofofkeys.com
This day commemorates the genesis block, 3rd of January 2009, the day that Bitcoin was born, by making sure you own your bitcoin. Always remember:
Quote
Not your keys; not your coins
If you have bitcoin stored at a company wallet(exchanges, banks, or any company), then you simply don't have 100% ownership of them. This day encourages everyone to withdraw bitcoin into your own wallets, even if it's temporarily, to make sure that your funds are still safe and that you can eventually withdraw it (some companies assume you won't be moving those bitcoins until it's too late).
Having your bitcoin controlled by your own wallet gives you a lot of benefits, and most importantly, it makes you realize that you don't need any bank or other institution to use money.
Happy proof of keys day!
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