Rejected 1: Coinbase Soon To Hold 1M BTC In Its Wallet

The largest crypto exchange in the United States, Coinbase will soon hold 1M BTC in its wallets as they recorded 970,000 BTC in Jan 1, Cointelegraph reports on January 24th.

Longhash released a data on January 23, recording that the crypto exchange (Coinbase) held USD8 billion worth of BTC (970,000 BTC) in its wallet as at January 1. From the data released, it shows that there is a growing number of BTC and other cryptocurrencies in its wallet. Most crypto exchanges also record a growing number of crypto assets in its wallet.

According to Longhash, during a discussion with cointelegraph, “Coinbase’s apparent dominance and steady growth maybe because it attracts a large share of long-term/institutional investors, who are less concerned with short term price swings.”

Since Coinbase was launched in June 2012, it has recorded more than 30 million active users, constituting both the private and institutional investors.

The phenomenon shows that over 90 percent of private and institutional investors prefer their BTC coin stored and traded from an exchange than to keep them in a wallet where they use the private key to control what goes out from it. Despite the growing rate of inherent security risk facing exchanges, investors still prefer the instructional habits of storing wealth in exchanges. This is an act of entrusting one’s crypto assets in the hands of a third party, which totally irks cryptocurrency proponents. Bitcoin is regarded as sovereign of money and should be treated with confidentiality.

Some reports have been released to inspire and show BTC holders the need to move their coins to a wallet where they will access using their private keys, but has not yielded any result as it does not spark any mass withdrawal.