10 Years! Celebrating Bitcoin’s Immutable Conception with #ProofofKeys
The world’s first cryptocurrency reaches an important milestone today, with the 10th anniversary of its first transaction.
To celebrate, it’s the perfect time to use your CoolWallet S in solidarity with the #ProofofKeys initiative for the greater good of the cryptoverse if you feel so inclined.
The viral #ProofofKeys campaign is urging cryptocurrency investors to temporarily move their virtual assets from digital exchanges for one day each year, starting today. We’ll delve into the merit and reasons behind this new movement a bit later.
First, let’s put the focus back on Bitcoin and take a brief look at its meteoric rise over the last decade, and how it transformed the way we look at money.
The Birth of Bitcoin
On January 3rd 2009, exactly one decade ago, a total of 50 BTC was transferred between two addresses in the first ever Bitcoin transaction and recorded in what is now referred to as Bitcoin’s “Genesis Block”.
This followed the release of Satoshi Nakamoto’s famous white paper “Bitcoin: A Peer-to-Peer Electronic Cash System” a few months earlier.
You can view Bitcoin’s birth certificate right here: https://www.blockchain.com/btc/block-height/0
The First Decade
Created in the wake of the 2008 economic crisis, the newborn digital asset was immediately embraced by a core group of programmers and investors sharing libertarian ideals. They wanted to build a decentralized future of money, where they could control their own assets independent of governments or banks.
Since then, Bitcoin and the so-called altcoins (alternative cryptocurrencies) launched in the wake of its success — such as Litecoin, Ethereum, Ripple and thousands of others — have experienced a tumultuous journey, experiencing exponential growth but also disastrous dark web and hacking scandals, price crashes and community splits (such as Bitcoin Cash).
Bitcoin finally got the world’s attention in late 2017, reaching an all-time high of nearly 20,000 USD/BTC. Since then, its price has crashed to under 4,000, a retracing attributed mainly to exchange hacks, legislative issues and hesitant institutional acceptance.
What is #ProofofKeys?
The #ProofofKeys campaign is the brainchild of longtime Bitcoin advocate and podcaster Trace Mayer, who suggested last month on social media that people withdraw their investment simultaneously out of exchanges to ensure these centralized institutions indeed have the funds they claimed they have.
What is the purpose of the #ProofofKeys?
Mayer argues that we should reclaim our “monetary sovereignty” by taking control of our private keys, even if only temporarily.
The idea is to help keep digital exchanges “honest” by collectively forcing them to show that they still have control over the cryptocurrencies, which their users are trading on their platforms.
Why is it important?
The year 2018 was a record-breaking year for crypto exchanges… for all the wrong reasons. The amount of cryptocurrencies stolen in mammoth hacks at exchanges such as Coinrail and Coincheck increased 13 times year-on-year, resulting in an unacceptable average theft of over 2.5 million USD per day.
Should I Use My CoolWallet S to Participate?
Our company feels strongly that our customers should have total control and flexibility over their cryptocurrency portfolio. That’s the reason we created the CoolWallet S in the first place.
We also respect the fact that exchanges are vital participants and innovators in the still nascent crypto ecosystem. Reputable digital exchanges act as a first-impression, first-point-of-contact for many new investors who are looking to buy and trade cryptocurrencies painlessly and within a few clicks of a mouse. Cold and hot wallets share a symbiotic relationship in many aspects.
Nonetheless, it is the duty of exchanges to ensure that they remain vigilant in the active protection of their users’ assets and follow protocol in a transparent manner that fosters confidence in the overall industry. The number of exchanges that got hacked or scammed users in 2018 is unacceptably high, because the barriers to entry were so low.
Initiatives like #ProofofKeys are useful as they will force exchanges to self-regulate and show their compliance with industry standards in order to earn the support of their investors.
It is also a reminder to every crypto investor that they are ultimately responsible for where they keep their virtual assets and who they entrust it with.
As the saying goes, a fool and his crypto is easily parted… or something like that.
Anyone serious about their crypto investments should always do as much due diligence as possible.
The goal is to push weak, risk-taking fraudulent exchanges out of business by not investing your hard-earned money with them, and to restore confidence industry-wide.
Owning cryptocurrency is ultimately a personal choice. Whether you invest for purely philosophical or financial reasons, or a bit of both, YOU get to make that decision. You should also have control over it at all times if you so wish.
We support any endeavor that makes the crypto industry stronger and more secure in the long run.
Not to mention, if it gets you to use your CoolWallet S more in the process… hey, we’re all for it!
Ultimately, as with anything in crypto, the “people’s money”, the choice and freedom of what to do with is all yours.
Disclaimer: CoolBitX does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any actions. CoolBitX is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the post.