The United States cryptocurrency exchange, Coinbase, will soon have a million Bitcoins ( BTC ) in its cold wallets, something controversial that is first seen in the industry.
According to data from the Longhash news and information resource published on January 23, Coinbase’s cold wallets contained about 970,000 BTC (USD 8 billion) as of January 1.
Coinbase to only 1 million BTC weeks
If the current growth continues, the company will reach the 1,000,000 BTC mark in February.
- 92% of institutional investors keep their cryptocurrencies in exchanges
The trend highlights the growing trend of interacting with Bitcoin through exchanges, with Coinbase figures including both private and institutional investors.
As Cointelegraph reported, recent attempts to assess institutional habits with regard to the storage of Bitcoin already strongly indicated that exchanges were the medium chosen by investors.
Now, despite many exchange hacks and other dangers of trusting third parties with their wealth in cryptocurrencies, it seems that consumers in general still prefer not to control their currencies.
“More individuals and institutions need to learn how to take care of themselves,” summarized Marty Bent, host of the Tales from the Crypt podcast, in an analysis of Coinbase figures on Thursday.
- Trace Mayer: take your Bitcoin from exchanges in the 2020 “Proof of Keys”
The Proof of Keys falls on deaf ears
With 30 million registered users since its launch, Longhash notes that Coinbase is by far the exchange with the highest Bitcoin holdings, but most major trading platforms are experiencing an increase in their balances.
Cryptocurrency advocates have long been annoyed by the phenomenon, which faces Bitcoin as sovereign money: trusting another person with one’s wealth is the equivalent of supporting central banking.
A dedicated effort to inspire Bitcoin holders to withdraw their coins from exchanges and place them in wallets that control private keys is now in its second year.
- Binance CEO suggests that crypto exchanges are safer than keeping the keys
However, despite the advertising effort behind Proof of Keys, the analysis of exchange wallets, which form several of the richest Bitcoin addresses in the world, shows that the most recent event on January 3 did not cause massive withdrawals.
“The apparent dominance of Coinbase and the constant growth may be due to the fact that it attracts a large part of institutional/long-term investors, who are less concerned about changes in short-term prices,” Longhash added in an inference that institutions rely on exchanges with custody.