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⚡Breaking Records🔨

Croxroad

05 Sep 2023 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

💶 Three Sequential Months of Exchange Withdrawals

An analyst on X said that lately, more people have been taking their Bitcoin out of exchanges than putting it in. They're talking about how many times people are putting Bitcoin in and taking it out of these exchanges.

In simple terms, it means that more people are selling or moving their Bitcoin out of exchange platforms rather than buying or depositing it into those platforms recently.

Look at this chart above, it shows that people have been taking more Bitcoin out of exchanges than putting it in for about three months now. This is a first in the Bitcoin world because normally, deposits usually catch up with withdrawals pretty quickly when this happens.

So, what does this odd withdrawal streak mean for the market? Well, the analyst has some ideas, and they're listed below.

1. Some maxis might just want to HODL their Bitcoin and not bother with trading or selling on exchanges.

2. Others are probably playing it safe and using their own wallets because they don't trust those big exchange platforms. Especially after some major players like FTX hit the rocks last year.

Some people think the drop in deposits on Bitcoin platforms isn't because of problems, but because more people are holding onto their coins and not selling them, so they're not putting as much into these platforms.

In simple terms, one analyst is saying that because of new rules in the US about Bitcoin, many investors are choosing not to keep their digital assets on exchange platforms to avoid any legal issues. They've especially been critical of Binance, which is the biggest exchange globally.

Another analyst has examined how much Bitcoin is stored on Binance and Coinbase over time, just to see how things have changed.

Binance used to have more and more Bitcoin saved up over the past year, even when the overall Bitcoin market was not doing so well. But recently, it's been losing more Bitcoin than it's gaining, as people are taking their Bitcoin out.

Meanwhile, Coinbase has been experiencing withdrawals for a while, which suggests that it's been steadily losing Bitcoin over time.

⚠️ The True Aim of $3 Bitcoin Miners, According to Their Makers

The tiny Bitcoin miners are a way for their creators to take a stance against the secretive and exclusive nature of the Bitcoin mining industry.

These tiny Bitcoin mining devices, though not super effective, are meant to challenge a major issue in the Bitcoin system, according to their creators. They're small and DIY-friendly, catering to a niche market of individuals who want to mine Bitcoin independently.

The folks who make these kits for Bitcoin mining are pretty upfront about something: you probably won't make a lot of money using them. But they have a bigger goal in mind. They want to take on what they see as a problem in the Bitcoin mining world – all the secrecy and how it feels like an exclusive club.

One company, BitMaker, even said you could put one of these kits together for just $3. It might not make you rich, but it can handle 50 kilohashes of mining power every second. So, they're making Bitcoin mining more accessible and transparent, even if it's not a get-rich-quick scheme.

A significant chunk of Bitcoin mining, around 35.4%, happens in the United States, followed by Kazakhstan (18.1%), Russia (11.2%), and Canada (9.6%). Some of the biggest mining companies include Marathon Digital and Riot Blockchain in the U.S., as well as Bitdeer Technologies Group in Singapore.

BitMaker argues that most popular Bitcoin mining machines are like black boxes, keeping their operations secret, unlike the transparent nature of Bitcoin's source code. BitMaker aims to change that with their micro miners.

As a result, only commercialised entities have been able to dominate the manufacturing and supply of Bitcoin miners, they claimed;

“Bitcoin mining machines are the backbone of the Bitcoin system, and they're all made in complete secrecy, with manufacturers keeping their designs and operations highly confidential.”

🔐 Safe And Secure

Bitcoin security hinges on several key elements. Firstly, your funds are safeguarded by a private key, acting as a secret password. If you lose this key, accessing your assets becomes impossible. Transactions are secured through blockchain technology, making them highly resistant to tampering and fraud. A decentralised network of computers globally verifies these transactions, bolstering their legitimacy. It's generally recommended that Bitcoin holders maintain self-custody by using their personal wallets, where they control their private keys, as opposed to entrusting them to exchanges or platforms. These systems also employ various cryptographic features such as public and private keys, proof of work, and proof of stake to ensure that only authorised individuals can manage transactions and access funds.