Bitcoin marks the tenth year anniversary of its Genesis Block today the 3rd of January. The Genesis Block is the first ever mined block of bitcoin and this was done on January 3rd 2009, exactly ten years ago.
In this year celebration, popular bitcoin investor, Trace Mayer is inviting investors to join in a “proof of key” celebration.
Tomorrow is the 10th anniversary of Bitcoin's Genesis Block. On that day, many will be doing #ProofOfKeys, which means sending your crypto from an exchange to a local wallet (and back, if you want). Learning how to do this will teach you about private keys & monetary sovereignty.
— Balaji S. Srinivasan (@balajis) January 2, 2019
What Are “Proof of Keys”?
There are two major reasons why the “proof of keys” celebration is important. One of them is to confirm that exchanges have the funds they claim to have. Also confirms that they have all cryptocurrencies deposited by users. This will help prove to investors that their cryptocurrency actually exists on the blockchain.
The “proof of keys” celebration will also help investors show their monetary sovereignty and ensure accountability on the part of the exchange platforms.
To further buttress his point for the need of a “proof of key” celebration, Mayer pointed out that it is essential for users to show their independence from time to time. He stated that this is quite important especially for new users who are still very ignorant about the rudiments of investing in cryptocurrency. Also increase in crypto exchange hacks has left users feeling very unsure about how secured their funds are on exchange platforms.
Mayer also pointed out how people have become lax dealing with their cryptocurrencies. They have left major decisions in the hands of exchange platform. He believes that the proof of key celebration will help crypto users be more involved with their cryptocurrency investments.
Happy 10th Birthday Bitcoin! pic.twitter.com/DpOPjojsOd
— BitMEX Research (@BitMEXResearch) January 2, 2019
Crypto Users Should Withdraw Funds Early
It is advisable for crypto user to withdraw their funds early. It is most likely that this movement will result in large withdrawal of funds. If exchange platforms are not in possession of the funds they claim to have, this celebration will definitely lead to their collapse. This could also lead to a cryptocurrency exchange panic. So withdrawing funds early instead of later will be the best action to take.
Several persons have come forward to criticize the movement. They claim that “proof of keys” celebration may cause a lot of problems for the cryptocurrency industry. To support their stance, they are pointing out that third parties do not store all funds on exchange platforms at once. They keep a substantial part of it in cold storage. They also claim that the celebration may cause unnecessary panic and extraordinary amount of traffic.
What’s your opinion of the “proof of key” movement? Do you think this is a good idea for the cryptocurrency industry now? Share your thoughts on this topic and any other topic on our Twitter and Facebook pages.