Just checking in with the community :)


#1

Hey all, Happy New Year! I hope everyone enjoyed their holidays and shared laughter and made memories with their families and loved ones. I had some good food and some nice sparkling wine :smiley:

Quick update: The Global Telegram (http://t.me/bitcoingoldhq) now has a bot for our reddit again, it will display all new posts from http://old.reddit.com/r/bitcoingoldhq making it quicker and easier to reply!

Also, there will be a new exchange soon, for the Philippines islands! This is exciting, I have not seen another exchange with PHP that supports BTG until now:

This is new for our community and the team is looking to reach out and embrace this new market. I wonder how the market will react to the January 3 ‘Proof of Keys’ event. It’s becoming quite popular, look at this:


https://www.ccn.com/bitcoin-exchange-hitbtc-freezes-customers-accounts-ahead-of-proof-of-keys-event/

More exchanges may do that as well, so be careful with your BTG, you may not be able to access them for a while!

Proof of keys is an idea that Trace Mayer talked about to ‘declare financial independence’ on the anniversary of BTC genesis block. Here is a nice article on it: https://medium.com/@eljuangalt/proof-of-keys-intentional-crypto-bank-run-4-step-survival-guide-4422b7c0e0d8

Cheers!


#2

I have mixed feelings about the Proof of Keys event.

I totally get the intent - ensure the Exchanges are solvent by withdrawing all the funds, which forces insolvent exchanges to fail. It feels like a way to force the truth into the open, albeit in an aggressive and damaging way.

But there are problems with if - for one, if an exchange actually is insolvent, it means those who promote and encourage the event get out whole, but the public which is less-informed gets screwed. In a “normal” exchange failure, all asset holders get the same haircut, but this way, some people do better than others.

And for the exchanges which are not insolvent - and will survive the event just fine - you’re screwing with business. For everyone. You’re making them pull from cold storage unnecessarily, which exposes risk. You’re clobbering exchange/trading volume for a day. You’re disrupting people’s lending on margin orders.

Despite all that… it probably won’t work. You probably don’t get enough people withdrawing to actually cause an insolvent exchange to go down. If the exchange only has half the assets they should… and as many as half of the people withdraw their assets… the exchange survives! (And I don’t have any reason to think they actually get 50% participation.)

It seems like a needlessly disruptive and vindictive way to try to “force” a kind of transparency, and it feels less like a legitimate “check on power” and more like a way for people angry at exchanges to lash out at them.