Tuesday, February 16th 2021 - Issue #930

Coins flying out of exchanges

Here's an interesting development; there has been a considerable amount of bitcoin taken off exchanges since June of last year. As you can see from the tweet above, there seem to be large players taking big chunks off at a time. What is happening with these bitcoin?

Your Uncle Marty isn't sure. I'd like to assume that these institutions are taking their coins off exchange and moving them into self-custody. However, this is probably a bit naive. It is certainly possible, but it's more likely that they are moving coins to other third party custodians and services that allow them to leverage their super collateral for cash or receive yield by lending to those looking to speculate on the price of bitcoin using futures contracts. Ideally, some are setting up multisig wallets that allow them to control their UTXOs by holding a portion of their own keys but also allow them to distribute risk by having trusted third parties (lawyer, accounting firm, another institution) hold some keys as well for redundancy.

Moving forward, it will be very interesting to see how institutions custody their bitcoin holdings. Bitcoin's native properties make self-custody possible in ways that have never existed with any other asset on the planet. It would be a shame if big players didn't take advantage of these inherent properties of the Bitcoin network. Regardless, it is encouraging to see coins moving off exchanges. In the worst case, risk is being distributed between more third parties. In the best case, the free float of bitcoin is moving into personal storage that will make it considerably harder for governments and regulators to confiscate or freeze funds.

Final thought...

Ready for beach weather again.

Looking to buy bitcoin with ease? Download the Cash App, use the code "stackingsats", get $10 and Cash App will send $10 to our friends at OWLS Lacrosse.

If you'd like to set up a one-on-one chat to learn more about Bitcoin I offer consulting services for an hourly fee. Please feel free to respond to this email if you're interested.

Share

Forward

Hope you enjoyed today's issue. If you have any friends that are looking to find out more about Bitcoin have them sign up for this newsletter here:

Get Ƀent

Ƀent noun 1. direction taken, as by one's interests; inclination.

Thanks for reading Marty's Ƀent, a daily newsletter containing all the information I found interesting in the Bitcoin world in the last 24 hours.

Marty's Ƀent - February 16th, 2021 - Issue #930

Coins flying out of exchanges

Older messages

Marty's Ƀent - February 15th, 2021 - Issue #929

The Sat Standard - Bitcoin Weekly - Feb 13 2021

Marty's Ƀent - February 10th, 2021 - Issue #926

Marty's Ƀent - February 11th, 2021 - Issue #927

Marty's Ƀent - February 12th, 2021 - Issue #928

You Might Also Like

Eric Trump joins Bitcoin firm Metaplanet’s advisory board, stock surges 17%

⚡ The Key To More Newsletter Sign-ups

WuBlockchain Weekly: OKX DEX Abruptly Suspends Services, Binance Releases Article on Binance Alpha 2.0, RWA TVL Su…

NFT & Gaming - 🦁 Loaded Lions is offering UEFA Champions League Quarter-Final tickets; Canary Capital filed to li…

USA to become ‘Bitcoin superpower’ as President Donald Trump appears by video at crypto event

Recent Trends in RWA and the Next Major Sector in the Coming Cycle

Reminder: Trump's Tariffs Exacerbate Trade Deficit

XRP surges 10% as Ripple claims decisive win over SEC regulations

Analyzing the Reasons Behind OKX DEX's Suspension of Services in Response to MiCA Regulations

DeFi & L1L2 Weekly — 🚀 Tokenised treasuries reached a record market cap of US$4.6B; The Ethereum Foundation launc…