What does this all have to do with 3rd January and Proof of Keys ?
So what do we gain from it?
- Users learn, re-familiarize themselves with the basics of using cryptocurrencies. New investors are usually stuck with exchanges. This acts as a reason to withdraw their coins from the exchanges, create and use wallets, and learn how to move their coins around. This gives the user a necessary exposure to the wider crypto space out of the realm of exchanges.
Many new users get to create their first wallet for which they own the keys. This comes as an important reminder that the coins only belong to the user when they are the sole owner of their keys.
- Institutions are infamous for practicing Fractional Reserve Banking, which means, some institutions might engage in more lending than their deposits. This is the crux of the traditional FIAT banking system and it essentially creates value out of thin air and contributing to the ever-rising inflation. This means a ‘bank run’ could help to bring out the names of dishonest exchanges as they would not be able to return the deposits of all the investors.
- “Declare and re-declare our financial sovereignty!” as said by Mayer, which was also one of the core principles of Bitcoin. So this an apt way of celebrating the birth of Bitcoin and the anniversary of the genesis block. The genesis block has the first Bitcoin transaction in which Satoshi Nakamoto sent 50 BTC to Hal Finney.
How can the users participate in Proof of Keys?
Users can start by tracking down the amount of crypto stored in various exchanges. This practice will help the user in compiling the crypto. You might be surprised by how much cryptocurrencies you hold when you bring it together in a wallet you own.
This event helps users more familiar with the ecosystems of the coins they hold.
Users can familiarize themselves with many kinds of different wallets and choose the one which they feel is most secure for them, based on their usage. Cypherock X1 can be used in various ways based on how frequently the users need to access their funds.
Teach other users about the importance of keys.
Last year saw widespread participation of people in Proof Of Keys and with more familiarity of the space, hopefully, the movement will gain greater traction and involve more users. Many crypto enthusiasts take part in events like Proof of Keys and events like these are what keeps the spirit with which the whole crypto movement was begun, alive.