Coinbase Holds a Whopping 966,230 Bitcoin ($7B) in Cold Wallet - page 2.

gentlemand

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Quote from: Mahanton on December 08, 2019, 11:57:47 AM

Do you guys read up on whats being discussed here or just simply talking about that almost 1M amount of bitcoin?

It's unsurprising that these types of posters, the ones incapable or unwilling to invest 5 seconds of actual comprehension, never, ever, ever have any merit.

It would be interesting to guess how many people own a combined equivalent amount themselves other than Satoshi. It could well be less than 15-20.

Mahanton

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Quote from: Desscount on December 08, 2019, 11:28:03 AM

Quote from: fiulpro on December 08, 2019, 06:51:27 AM

Well I think they are just trying to show how They are on the top of the game in terms of bitcoins and how thus can change the game anytime they want ..
First they were just some company helping people buying and selling bitcoins and trading and stuff, now they are a whale too which is actually scary and this amount of bitcoins comes with such a huge security so people can actually count on them for this . Hopefully they have good intentions with it ...

they must have sold it back in 2017 too, if Coinbase bought it in 2019 it means they have good speculation going forward,
does anyone know when they started to hold almost 1 million bitcoin?

Do you guys read up on whats being discussed here or just simply talking about that almost 1M amount of bitcoin?
Those coins arent owned by Coinbase itself but rather those are coins from their platform users, so basically means they are just
holding up in behalf of their customer.Thing here is that they've become big and even its heavily centralized theyre still being
trusted up by many.

Desscount

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Quote from: fiulpro on December 08, 2019, 06:51:27 AM

Well I think they are just trying to show how They are on the top of the game in terms of bitcoins and how thus can change the game anytime they want ..
First they were just some company helping people buying and selling bitcoins and trading and stuff, now they are a whale too which is actually scary and this amount of bitcoins comes with such a huge security so people can actually count on them for this . Hopefully they have good intentions with it ...

they must have sold it back in 2017 too, if Coinbase bought it in 2019 it means they have good speculation going forward,
does anyone know when they started to hold almost 1 million bitcoin?

fiulpro

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Well I think they are just trying to show how They are on the top of the game in terms of bitcoins and how thus can change the game anytime they want ..
First they were just some company helping people buying and selling bitcoins and trading and stuff, now they are a whale too which is actually scary and this amount of bitcoins comes with such a huge security so people can actually count on them for this . Hopefully they have good intentions with it ...

Karmakid

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Quote from: smartbitcoininvestor on December 07, 2019, 08:22:52 PM

The larger their stash of Bitcoins the more trustworthy they are as an exchange. I would trust holding my BTC, ETH, LTC and other cryptocurrencies on Coinbase simply because they have such a large stash.

Most banks operate in the same way.

It doesn't work in that way. Having a huge stash of cryptocurrencies means that they are trustworthy, there is still a chance for them to get hacked or even run away with its user's cryptocurrency. If you are currently thinking about depositing your cryptocurrency which is a huge amount then invest in a hardware wallet and hold it by yourself to avoid complications.

Hallmader

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Quote from: alyssa85 on December 02, 2019, 07:48:16 AM

https://beincrypto.com/coinbase-holds-a-whopping-966230-bitcoin-7b-in-cold-wallet/

Quote

According to recent reports, Coinbase has a whopping 966,230 Bitcoin in its cold wallet. The exchange is increasingly becoming like a ‘bank’ which stores a growing number of deposited cryptocurrency assets.

Other exchanges lag behind Coinbase, but still have sizeable cold wallets from its depositors and own funds. BitMEX has around 265,140 BTC ($1.94B) while Bitstamp comes in third with 229,490 BTC ($1.67B). Other top exchanges by assets under its custody are Bitfinex (146,120 BTC), Kraken (136,780 BTC), Bittrex (131,340 BTC), and Coincheck (35,090 BTC)

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I'm not sure they should be advertising this. I just hope they have really really FIERCE security and are guarding their stash like hawks.

For sure there are already countless of attempts to get into these treasures. These attempts to hack wallets of large exchanges are constant. Well, at least these amounts are stored in cold wallets. But I still agree with you that information as sensitive as this should not be released to the public. This will only encourage the most skillful hackers out there to try knocking down the security wall of these wallets. It is much more secure if these funds are stored in different cold wallets in smaller amounts.

ashmodeus

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Quote from: exstasie on December 07, 2019, 05:37:32 PM

At some point, it becomes a political threat. They already control 5% of the BTC supply. Let's imagine a hypothetical future where they control 25% of the supply and then get hacked for everything. Since their custodial holdings represents such a huge portion of BTC investors, there will be huge financial and political incentives to destroy Bitcoin's immutability and roll back the chain.

Sadly, markets usually become more consolidated over time, not less.

hmm..
as far i know , to do re-org require pushing for consensus from major miners and mining pools to gather over 51 percent of the network’s total hashing power , and i guess its not a easy task.
but,since 25% is not a small value , probably miners will do it, but negative effect such as credibility for bitcoin will lose.
and i am sure , after it happen , people will lose interest.
but well, the only good thing about this is that cold wallets have very little chance of being hacked.

smartbitcoininvestor

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The larger their stash of Bitcoins the more trustworthy they are as an exchange. I would trust holding my BTC, ETH, LTC and other cryptocurrencies on Coinbase simply because they have such a large stash.

Most banks operate in the same way.

gentlemand

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Quote from: exstasie on December 07, 2019, 05:37:32 PM

At some point, it becomes a political threat. They already control 5% of the BTC supply. Let's imagine a hypothetical future where they control 25% of the supply and then get hacked for everything. Since their custodial holdings represents such a huge portion of BTC investors, there will be huge financial and political incentives to destroy Bitcoin's immutability and roll back the chain.

Sadly, markets usually become more consolidated over time, not less.

Hacks are definitely a worry but a more likely scenario is that percentage or higher winding up under the control of the 'banking class' who are all much of a muchness. If several major US corporations have 20-50% of the supply in their control which is conceivable that's about 10-15 dirty phone calls from the government to implement whatever they feel like.

X-ray

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Quote from: ntsdm1 on December 07, 2019, 06:55:47 PM

Quote from: exstasie on December 07, 2019, 05:37:32 PM

Quote from: alyssa85 on December 06, 2019, 07:46:29 AM

The whole point of decentralised cryptocurrency is that there isn't a single point of failure that can wreck the whole project. By centralising coins in an exchange like Coinbase, you bring the single point of failure back into play. Maybe we can trust coinbase, but what if we can't?

At some point, it becomes a political threat. They already control 5% of the BTC supply. Let's imagine a hypothetical future where they control 25% of the supply and then get hacked for everything. Since their custodial holdings represents such a huge portion of BTC investors, there will be huge financial and political incentives to destroy Bitcoin's immutability and roll back the chain.

Sadly, markets usually become more consolidated over time, not less.

That's why you should be afraid of the concentration of bitcoin in one hand.Consolidation of a large number of bitcoins in one hand can lead to the collapse of the market literally in 1 night.

Well it's because people really like to centralize their asset into one exchange anyway. Imagine 25% of bitcoin circulated supply got saved in one cold wallet that's just frightening because once it got stolen by someone then we're done for. That's why it's good to see new quality legit exchange appear just for the sole purpose of competing with these dominant exchange and potentially decentralized their assets by attracting some of their users.

ntsdm1

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Quote from: exstasie on December 07, 2019, 05:37:32 PM

Quote from: alyssa85 on December 06, 2019, 07:46:29 AM

The whole point of decentralised cryptocurrency is that there isn't a single point of failure that can wreck the whole project. By centralising coins in an exchange like Coinbase, you bring the single point of failure back into play. Maybe we can trust coinbase, but what if we can't?

At some point, it becomes a political threat. They already control 5% of the BTC supply. Let's imagine a hypothetical future where they control 25% of the supply and then get hacked for everything. Since their custodial holdings represents such a huge portion of BTC investors, there will be huge financial and political incentives to destroy Bitcoin's immutability and roll back the chain.

Sadly, markets usually become more consolidated over time, not less.

That's why you should be afraid of the concentration of bitcoin in one hand.Consolidation of a large number of bitcoins in one hand can lead to the collapse of the market literally in 1 night.

exstasie

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Quote from: alyssa85 on December 06, 2019, 07:46:29 AM

The whole point of decentralised cryptocurrency is that there isn't a single point of failure that can wreck the whole project. By centralising coins in an exchange like Coinbase, you bring the single point of failure back into play. Maybe we can trust coinbase, but what if we can't?

At some point, it becomes a political threat. They already control 5% of the BTC supply. Let's imagine a hypothetical future where they control 25% of the supply and then get hacked for everything. Since their custodial holdings represents such a huge portion of BTC investors, there will be huge financial and political incentives to destroy Bitcoin's immutability and roll back the chain.

Sadly, markets usually become more consolidated over time, not less.

L0FH6

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It looks like Coinbase wants to have a viable backing to their financial future to have any peg to value at all given the ponzi scheme of a fractional reserve banking system we are currently under.

Febo

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Quote from: alyssa85 on December 02, 2019, 07:48:16 AM

I'm not sure they should be advertising this. I just hope they have really really FIERCE security and are guarding their stash like hawks.

When you hold $7 billion you for sure have good security. That is a yearly budged of not that small country. Their cold storage's are for sure secured by guns.

beerlover

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I think the point of "cold wallet" is both quite risky but also the thing that makes people believe its safe.
First of all its really really difficult to hack a cold wallet, the whole point of cold wallet is not being easy to hack, you have to have someone from the inside to be able to hack it.

However, let's remember mt.gox was hacked and they had money in cold wallets too, so inside work is still possible. Plus we heard just recently the owner of IDAX ran away with the cold wallet as well. So, from the regular hacks its safe, but from a bigger situation its still possible. Whats the difference between coinbase and idax? Coinbase is based in USA and if they ever do anything similar and run with it, they have to move countries because USA will not allow and will prosecute them, so they need to be in a country like Brazil or Singapore where there is no extradition.

wxa7115

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Quote from: Wexnident on December 02, 2019, 08:39:10 AM

Imagine if coinbase went crazy and let loose this amount of BTC in the world. Well, by the end though, these amounts of BTC would still spread over the globe to various users to be used as a form of currency. We all are waiting for that time that Fiat is replaced by crypto, and well, holding or storing coins impacts the idea of replacement negatively. Besides, why store something that is supposed to be used right?

Coinbase cannot do that because most likely those are the funds of their clients and it is not up to them to decide how to use that money, the only thing that they have to do is to secure those coins properly, it seems to me that you have the wrong idea about what bitcoin represents, bitcoin is capitalist to its very core, the concept of a coin that no one can take away from you without your permission means that you have complete ownership of your money, something that you cannot do with fiat.

The concept of giving away your coins just so other people could begin to use them could have been a viable strategy when bitcoin was worth just a few cents but not now.

gentlemand

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Quote from: Vishnu.Reang on December 06, 2019, 11:58:25 AM

In that case Satoshi Nakamoto also holds one million coins. You can't say that Bitcoin is centralized, because 1 million coins represent only around 5% of the circulating supply. The other cryptocurrencies are much more centralized. For example, it is rumored that a handful of promoters hold somewhere between 80% and 90% of all the XRP circulating supply.

But anyone was free to out mine him and I'm sure he would've been delighted if that had happened from minute one.

For better or worse many people want centralisation. They want a company to whine to. They want them to do the hard stuff in terms of security. At least on the surface they appear to be doing an adequate job of it. I couldn't care less what others do with their coins and at least they're not like Bitstamp and make bullshit demands of outrageous invasiveness.

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Quote from: el kaka22 on December 06, 2019, 11:18:08 AM

I still can't believe how we managed to find a way to centralize bitcoin when it was something so decentralized. Guys literally collected over a million bitcoins, how? All because we gave it to them so they can hold our coins for us. Not only they are making so much money thanks to trading fees and withdrawals and purchases etc etc basically everything costs a fee, but they are also keeping peoples bitcoins on their own vaults. They could literally tell people there is 100 bitcoins when there is 50, who would be able to deny their fact?

I seriously think we should be focusing more on DEX exchanges where nobody really gives anyone any money until the trade, there is no deposits and no withdraws, just pure trading between two wallets, technology is there.

In that case Satoshi Nakamoto also holds one million coins. You can't say that Bitcoin is centralized, because 1 million coins represent only around 5% of the circulating supply. The other cryptocurrencies are much more centralized. For example, it is rumored that a handful of promoters hold somewhere between 80% and 90% of all the XRP circulating supply.

el kaka22

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I still can't believe how we managed to find a way to centralize bitcoin when it was something so decentralized. Guys literally collected over a million bitcoins, how? All because we gave it to them so they can hold our coins for us. Not only they are making so much money thanks to trading fees and withdrawals and purchases etc etc basically everything costs a fee, but they are also keeping peoples bitcoins on their own vaults. They could literally tell people there is 100 bitcoins when there is 50, who would be able to deny their fact?

I seriously think we should be focusing more on DEX exchanges where nobody really gives anyone any money until the trade, there is no deposits and no withdraws, just pure trading between two wallets, technology is there.

vintages

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What where they thinking when they released this report? They seriously shouldn't have done it.
It's all about been security conscious and they will be blamed if anything tends to happen to users funds.
Of course, we all know that a long time exchange like Coinbase will be having millions of digital currency in their database but this public announcement is just a total ten off: worst marketing strategy.

Topic: Coinbase Holds a Whopping 966,230 Bitcoin ($7B) in Cold Wallet - page 2. (Read 773 times)