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Golden Observation | You better hold BTC yourself



You need to withdraw BTC Here are the reasons for withdrawing BTC and using self-custodial services Believe it or not, a BTC ETF is about to launch. Market analysts said: "BTC ETF is about to go online, but we are not fully prepared yet." You may feel excited and feel that the old guard has recognized BTC. After the launch of the BTC ETF, many investors can easily obtain BTC exposure through the current account of the big bank. As a revolutionary store of value, BTC is rapidly gaining recognition. However, like many financial products on Wall Street, ordinary investors should proceed with caution. As we all know, the big banks don't care about the interests of ordinary people. However, for BTC ETF, the biggest hidden danger is not only from big banks. Hidden dangers also come from the most powerful governments and sources of the current world currency reserves. The question we all need to ask ourselves before buying any BTC ETF is who exactly is holding your BTC at the end of the day? In today's view, this question may show your ignorance, but based on past experience, in the near future, this question will be of great significance. Where are your assets stored? Over the past decade, fintech has made investing easier, with robo-advisors and game-like trading apps, but the underlying structure hasn’t changed. Golden Shuizang’s first collection "Hip Hop Summer" is all sold out: According to official news, Jinse Shuzang, a digital art and culture collection platform incubated by Jinse Finance, released the digital collection "Hip Hop Summer" limited to the summer of the twelve constellations of fellow uncles, online 1 It was sold out within an hour, and activities such as the second creation of the collection will be launched soon. For more information and collection empowerment dynamics, please continue to pay attention to the golden data collection platform. [2022/7/8 2:00:47] Why is this? The main reason is that the regulation stipulates the asset owner and the type of assets held, as well as how to prove the ownership and management of assets. The entire paper-based process is old and lacks innovation. The banking industry does not have much incentive to upgrade the back end of its systems. Most so-called fintech innovations are nothing more than hiding the old world behind a digital facade. You can buy and view assets, such as stocks, bonds and ETFs, in the brokerage app, but the holders of these assets are regulated custodians. Most of the time, this won't cause a problem, and it's actually more convenient for you. Can you go to a bank branch every time you want to sell a stock? Ordinary investors let the back-end custodian operate through the digital interface, which makes the transaction more convenient, but it does mean that your assets are held by others. Why this is important is discussed below. As a native digital asset, BTC has its unique features. Most places to buy BTC allow it to be withdrawn to a wallet. Because the entire process is digital, the purchase and withdrawal process only takes a few seconds. BTC on exchanges is a bit like cash in the bank, except that unlike cash, you don't need to go to an ATM or branch to withdraw money and then cut a hole in your mattress to hide it. Withdrawing BTC or any asset from an exchange is self-custody. Golden Evening News | List of important events on the evening of October 21: 12:00-21:00 Keywords: PayPal, Tether, 3iQ Bitcoin Fund, Bundesbank, China Central Radio and Television, Filecoin Official 1. Vice Premier Liu He: District Technologies such as blockchain are profoundly changing the future financial ecology. 2. PayPal will allow cryptocurrency buying, selling and shopping on its network. 3. Filecoin officially answers 6 major market questions including "FIL market making, circulation and miners' strike". 4. Yi Huiman, chairman of the China Securities Regulatory Commission: support the construction of blockchain registration and custody infrastructure in the capital’s regional equity market. 5. Data: Tether's new money printing speed has accelerated, and its market value has exceeded 16 billion US dollars. 6. The China Securities Regulatory Commission approved the IPO registration of Ant Group’s Science and Technology Innovation Board. 7. Bundesbank official: It is very important to create tools to limit the use of the digital euro. 8. China Central Radio and Television will introduce digital currency for the first time to serve enterprises. 9. The trading volume of 3iQ Bitcoin Fund on the Canadian Stock Exchange has exceeded 100 million US dollars. 10. The Digital Currency Research Institute of the Central Bank and the Rural Credit Bank Fund Clearing Center cooperate to promote the application of digital renminbi. [2020/10/21] BTC is a purely digital currency, which makes self-custody of Bitcoin much easier than dollar bills or stocks. The whole process is just a few clicks away from your phone, without a trip to the bank, and could lead to a huge struggle to change the regulated custody model for most investment assets. Most investment assets are held by custodians, but self-custody of BTC is very easy in many cases. So, why would you own other assets like BTC? Golden Relativity | Chen Hua: The halving triggers the shutdown of some miners, which will bring about a large fluctuation in the proportion of mining pool computing power: In the live broadcast of the Bitcoin halving special edition of "Crisis Turns Left, Faith Turns Right" held today, for " What tests will the halving of Bitcoin bring to the mining pool?" Chen Hua, the founder of Spider Mining Pool, said that Bitcoin mining rewards are facing halving again, from 12.5BTC to 6.25BTC. The halving will reduce the mining pool Income, the shutdown of some miners triggered by the halving will bring large fluctuations in the proportion of mining pool computing power, and even affect the ranking and brand of mining pools. In the past six months, the ranking of BTC mining pools has been relatively fixed. During the first halving event in November 2012, the computing power of Bitcoin’s entire network remained at around 27.6T for 80 days. Until mid-February 2013, the computing power of the entire network exceeded 30T. The second Bitcoin halving occurred on July 10, 2016. The 1.73E on July 1, 2016 dropped to 1.54E on July 12 after the halving, and the computing power dropped by 10.98%. According to the data, the mentality of miners is relatively stable. Compared with the previous halving, the biggest difference is that after the first two halvings, there was a market, and there is also a strong halving market expectation for the third halving. Everyone hopes that the halving will bring great market prices. This halving is also accompanied by a big background that the spread of the global epidemic has caused capital flows to be different from usual, and the currency and mining circles are more or less affected by this, which makes the market changes after the third halving more confusing and worth looking forward to. See the original link for more details. [2020/5/11]Why are asset holders important? In developed countries, where institutions work well, it is difficult to appreciate the importance of this issue. If you live in a developed country, you've probably never had a problem selling assets or withdrawing money from your bank. Quotes | Golden Hot Search List: ONT returns to No. 1, HIT drops to tenth: According to exclusive data from Jine Finance, in the past 24 hours, ONT ranked first in searches, and HIT dropped from fifth to tenth. The specific top ten list is as follows: ONT, BTC, EOS, ETH, ADA, ETC, QTUM, XRP, DASH, HIT. [2018/8/6] However, if you are in an industry that is in a "grey area" for banks and governments, such as adult entertainment or gambling, you may often encounter bank account freezing or fund seizures. If you don't live in a developed country, you probably know the importance of self-custody through experience, because bank failures, government seizures, or institutional corruption can cause assets to disappear. Unfortunately, there is a deeper danger to this problem that affects everyone, especially those living in developed countries that are heavily indebted, both in the public and private sectors. To illustrate the dangers, here's how the wealthiest countries have approached asset holdings in the past. Government Stealing Citizens' Savings In the early 1930s, the US government was in deep trouble. The Great Recession forced the government to print money, but the government's ability to flood the market with cash to support prices has reached its limit. At that time, every dollar in circulation required at least 40 cents worth of gold in the Fed's reserves. The Fed has printed all the value of gold it owns into dollars, so it needs more gold and prints more dollars. Jinse Finance live report Chen Qing, CEO of Higgs Block Group: Cryptocurrency faces great opportunities for development: Jinse Finance live report, at the 2018 FINWISE Tokyo Summit, Chen Qing, CEO of Higgs Block Group, gave a speech on the theme of "Bigger and Better" In her speech, she pointed out: Cryptocurrencies are surpassing most other currencies. In real life, by 2020, 28% of traditional banking and payment business will turn to fintech - this broad category covers almost all financial services and technology. Cryptocurrency faces great opportunities for development. Exchanges are currently facing issues such as reaching a certain scale and coverage, funding and finance, gaining popularity and recognition, regulatory issues, and establishing sustainable inflows. The "Cryptocurrency Exchange Alliance" should guide and join hands with traditional finance to create a larger cryptocurrency market, including institutions, banks, supervision, and investor relationship building and maintenance. [2018/5/21] However, the printing of money by the Federal Reserve creates another problem, which is that the value of cash is reduced, destroying the value of existing savings, which means that holding cash is a poor way to save for the future. American citizens now face threats to the value of their savings and wages as they struggle to survive the Great Depression. They need an asset that won't depreciate. At that time, the only such asset was gold. Both the U.S. government and U.S. citizens are snapping up gold. What happened next? The U.S. government confiscated gold from its citizens. On April 5, 1933, President Roosevelt signed Executive Order 6102, using still-in-force wartime powers, requiring all persons to turn in gold coin and bullion to the Federal Reserve on or before May 1 of that year, prohibiting any citizen from further Buy gold. Of course, the Federal Reserve would let everyone exchange gold for dollars at the then market rate of $20.67 per ounce of gold. This seems like a fair idea, doesn't it? In less than a year, after the passage of the Gold Reserve Act of 1934, an ounce of gold was equal to $35, depreciating the price of the dollar by nearly 50%. As a result, the Fed was able to continue to devalue the dollar, but ordinary people were prohibited from holding value-preserving assets. Americans who hid their gold coins under the floorboards had a chance to keep them from being confiscated. However, it is much easier for the government to confiscate gold held in banks because the authorities know where to get the gold. So the holder of gold is important during this time. Having said that, this is a very tense and extreme time in American and world history. What signs do we have that this history may be repeating itself? What role will BTC play in it? Is there a reason for governments to confiscate BTC these days? First of all, it is important to understand that the purpose of BTC is to counter the inflationary trends of governments and central banks. When the economy is in recession, the government always tries to print more money, falsely claiming to "satisfy the demand for cash". In effect, they are devaluing cash and redistributing value to other people. Here's what Satoshi Nakamoto wrote in the BTC white paper: The fundamental problem with traditional currencies is that they operate on trust. People have to trust the central bank not to devalue the currency, but based on the history of fiat currencies, this has often happened. BTC represents a typical precious metal. Instead of maintaining value by changing the supply, it pre-determines the supply and the value changes according to the quantity. This is why BTC is called "digital gold". It can provide value protection for savers, just like gold in past inflationary periods, and BTC is highly portable and can be traded at any time. No matter how demand changes, the supply of BTC will not change. The precious metal is the only asset on earth with a similar total supply to BTC, although its price is less predictable than BTC. When the government decides to issue additional legal currency, value storage assets such as BTC and gold become value storage tools. The conditions for the government to seize BTC If the accumulation of long-term debt leads to an economic crisis, then the government can justify confiscating BTC, or any other value storage asset, just like it did in the 1930s. The government needs to respond to the crisis by printing money to devalue the currency. In this way, those who earn wages and have savings will be greatly harmed because their assets are in the form of fiat currency. In turn, people will scramble to sell the ever-depreciating fiat currency and look for assets to preserve their value. Because the devaluation of fiat currency would trigger a sell-off, the government would either watch the fiat currency and the power it brings disappear faster and faster, or use the remaining power to do what Roosevelt did in 1933. They can confiscate valuable assets and forcibly prevent further purchases of value-preserving assets, making it impossible for individuals to protect the value of their savings. Do these conditions exist today? Now that debt levels are at record highs, are we facing a serious crisis that will lead to unprecedented issuance? Are the prices of value-preserving assets rising? Major crisis: COVID-19 hits new highs Debt levels Unprecedented number of new issuances Price growth levels for all types of assets Most of the world is in recession this year, stock prices have risen sharply, this is the typical situation described above, no one wants to hold Have cash, but want to buy other hedge assets. From January 1, 2020, to the time of writing, the S&P 500 is up nearly 40%, and Bitcoin is up nearly 500%. Even lumber prices have increased by 230%. Still not convinced it's true? Ray Dalio is the founder and CEO of the world's largest hedge fund, specializing in market and economic cycle research. In a recent article reporting on the current state of finance, Dalio compared the current situation to the 1930-1945 period, saying: "If history and logic dictate that governments raise taxes when their finances are insufficient, these debt assets and capital Flows to other value-preserving assets and other tax areas, so it is likely to impose a ban on capital flows and not allow assets to flow into gold, BTC, etc. These tax changes may be more scary than expected.”In times of crisis, your asset custody The latter is the most important. Do you keep your BTC on an exchange, give it to a custodian, or hold it yourself? Withdraw your BTC The world is undergoing unprecedented changes in our lives, and most of us have never experienced these changes. History and logic suggest that what happened at the end of the last major debt cycle will repeat itself, with the government confiscating citizens' assets, fixing its own mess, and saving a self-serving system. This time, people have a more powerful tool to avoid this crisis. However, the tool is subject to proper use. Buying BTC but not being able to hold it yourself is like buying a helmet but not wearing it while riding a bicycle. It won't provide protection when you need it most. If BTC is stored on an exchange or owns BTC through ETF products, your BTC will be confiscated in the most valuable and necessary situations, which means that the current monetary system has collapsed. Fortunately, buying and storing BTC safely is still simple today. You'd better keep it for yourself now, lest it be confiscated.


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