Skip to main content

Bitcoin Bigwigs Detach Their Cryptocurrency from Centralized Exchange System.

PEDRO or POT, he’s a village boy and a grandmother's product. A man of many worlds. He’s a writer, blogger and shares his Stories Online.

bitcoin-bigwigs-detaching-their-cryptocurrency-from-centralized-exchange-system

Cryptocurrency: The Importance of Staying Updated.

Fortunately, like anything else in life, the currency has its benefits and its drawbacks.

Thus, one should keep up to date on any new developments regarding Bitcoin and other currencies of the cryptocurrency family.

It’s disheartening that fear, lack of adequate and up-to-date information about cryptocurrency, some people would totally decide to withdraw to transact in crypto or become a channel for disseminating fake and wrong information about it.

Having incorrect information makes it almost impossible for people to take full advantage of the benefits Bitcoins and other currencies offer as cryptocurrencies.

Our Mission Is to Inform and Educate About Bitcoin as a Cryptocurrency.

We will not relent in our efforts to equip ourselves and others with more information regarding this currency.

Bitcoin is one of the best-known cryptocurrencies. It’s cryptocurrency that inspired Blockchain Technology.

Unlike the US dollar, cryptocurrency is a digital medium of exchange, which uses encryption techniques to verify the transfer of funds and to control the creation of monetary units.

Cryptocurrency is one of the major and amazing inventions of the 21st century.

In this regard, it is our mission to disseminate this information so that it can benefit everyone.

To get started with Bitcoin and cryptocurrency in general, take advantage of the resources and guidelines we’ve specifically prepared for you.

Bitcoin: Payment and Storage.

Using Bitcoin is similar to using any other payment method, in that payments can be sent and stored.

Unlike fiat currencies like the US Dollar, Euro, and Japanese Yen, Bitcoin has a decentralized structure and an opt-in model (consent).

How does Fiat Money work?

The currency is issued by central banks under centralized 'fiat money' (literally, money by decree), and imposed on citizens to use their nation's currency. In most cases, all transactions are conducted through an intermediary like a bank or checkout portal, except for cash transactions, which have become more commonplace in recent years.

The Bitcoin currency, in contrast, is managed by the 'consensus' or will of its users. The Bitcoin network comprises individuals who agree voluntarily to abide by its rules.

People-to-people transactions are made using decentralized infrastructure, and value is stored without any involvement of government, companies, or financial institutions.

Therefore, using Bitcoin is entirely anonymous, and there is no risk of disconnection from the system.

Moreover, the system is distributed globally and headless, making it highly durable and resistant to corruption.

What Determines Bitcoin's Value?

To understand why Bitcoin is valuable, it is important to understand two things:

Scroll to Continue
  • Exchange and store value—One of its features is that it makes it convenient for some people to exchange and store value
  • Consensus—A consensus exists among people that Bitcoin is a valuable currency

Gold and Bitcoin share similar characteristics. Throughout history, money has been used in a variety of ways, but gold has probably lasted the longest. The reason?

Due to its durability, divisibility, and parity, gold has historically been an attractive metal. This made gold an appropriate medium for storing value and exchanging it.

Characteristics of Gold and Bitcoin. These include:

Limited supply.

  • Bitcoins have a limited supply - 21 million are available at a time.
  • It can be divided easily—100 million pieces can be created from a single Bitcoin. And high durability is a hallmark of its products.
  • Independent computers track Bitcoin ownership worldwide. Since Bitcoin is backed up by this system, it can’t be lost.

Gold's monetary properties are brought into the modern era by Bitcoin in addition to these features. Here are a few of them:

  • The process of sending Bitcoin is simple. In minutes, you can send Bitcoins to anyone in the world as a message is similarly encrypted.
  • Bitcoin is easily verifiable. Bitcoins cannot, therefore, be used to transact if they are fake or fraudulent.

Because of its utility as a standard of exchange, gold became almost universally accepted as valuable. The modern Internet's scale and speed make Bitcoin a valuable network, despite its founding in 2009 and being significantly younger than gold.

This high-tech trend has propelled Bitcoin supporters exponentially since the currency's inception, and its price is now approaching gold - though that may not last.

bitcoin-bigwigs-detaching-their-cryptocurrency-from-centralized-exchange-system

Bitcoin Wallet: What Is It?

The Bitcoin wallet is a device or program that sends and receives bitcoins. In the beginning, the term wallet may seem confusing to individuals who are not familiar with bitcoins or cryptocurrencies. In contrast to physical wallets that store physical currency, Bitcoin wallets cannot store Bitcoins. How does this make sense?

Debit cards are already in almost everyone's wallet. Although debit cards do not contain money, they let you access your funds. The process of using a Bitcoin wallet is similar to that of using a traditional wallet. Debit cards are controlled by centralized entities (such as banks), while Bitcoins are not owned by anyone. Consequently, Bitcoin wallets differ from bank accounts.

Non-Custodian Wallets to the Rescue.

Recently Bitcoin has been going through a tough and turbulent moment as government scrutiny increased. The Biden administration recently signed an executive order with a close watch on cryptocurrency.

The unstable environment sees the cryptocurrency market with prices fluctuating up and down.

Amid these tumults and disruptions, Bitcoin bigwigs have devised a means to withdraw their cryptocurrency from the centralized exchange system.

Following this trend, wallets are shuffled from one to another. Non-custodial wallets are a type of digital wallets that don't rely on centralized exchanges.

This means reverting to the old system as this form of exchange existed long before the centralized system.

Government Strict Regulation.

The current regulatory climate in the US places cryptocurrency under intense scrutiny.

That would mean new laws that will put a tight measure in place to control the cryptocurrency market.

With these regulations all over, many Bitcoin magnets or bigwigs are taking precautions to avoid getting caught in the falling-out.

By moving BTC and other cryptocurrencies to non-custodial wallets, the Bitcoin bigwigs can ensure they’re not subject to the control of centralized exchanges.

Because the exchanges will inevitably need to comply with US regulators.

Their move is a clever way to protect their digital assets.

Benefits of Non-Custodial Wallets.

Overall, there are several benefits to using a non-custodial wallet over a centralized exchange, and are listed as follows:

1.- Increased control over your crypto assets

2.- Protection from possible regulations

3. - More privacy and security

A non-custodial wallet is a way to go.

And thankfully, they’re becoming increasingly easier to use, so there’s no excuse not to make the switch.

Non-custodial wallets are crypto wallets that do not store your assets on a centralized server.

But with every positive thing in life, there’s always a downside.

The drawbacks of non-custodial wallets, among other things, are that

it can become somewhat cumbersome to use than a centralized exchange.

At least until you learn all the parts and bits.

But with the increasing popularity of crypto, more and more wallets are becoming user-friendly and easy to navigate.

Third-Party or Vendors By Proxy.

Most non-custodial wallets don’t let you buy crypto or altcoins directly in their wallet app. If they do, then it’s handled through a third-party vendor.

And these vendors by proxy fall under the same regulatory control as the centralized exchange system.

Fiat on-ramp providers for crypto (an arrangement that allows fiat money to flow into crypto assets) must adhere to KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures in the countries they operate.

If you already have crypto in your non-custodial wallet, then you can easily swap in-app or connect your wallet to a decentralized exchange system.

Thanks for reading!

If you enjoyed what you read, kindly comment, subscribe, and follow me on HubPages.

This content reflects the personal opinions of the author. It is accurate and true to the best of the author’s knowledge and should not be substituted for impartial fact or advice in legal, political, or personal matters.

© 2022 PEDRO O THOMPSON--- P O T

Related Articles