Expert opinion: Keeping bitcoins in exchange offices will reduce the price

One digital currency analyst says that if investors keep their bitcoins in exchange offices, those exchanges can sell their bitcoins to someone else. In this case, as the supply of bitcoins increases, the price of this digital currency will decrease.

According to the Coin Telegraph, hacking and security breaches are among the dangers that threaten bitcoin holders in centralized exchanges. An analyst claims that keeping bitcoins in stock exchanges will reduce the price of this digital currency.

Rufas Kamau, a researcher and digital currency analyst at Scope Markets Kenya, explains how storing bitcoins on stock exchanges reduces the price of this digital currency. He believes that buying bitcoins at exchange offices is just a kind of purchase I owe you Or IOU. IOUs are informal documents that certify the debt of one person or group to another. Kamao describes this type of bitcoin as “paper bitcoin”.

In this regard, he said:

If you buy bitcoins from the exchange, you are basically buying paper bitcoins; An IOU purchase from exchanges that settles it as soon as you decide to move your bitcoin off the exchange. That is why the fee for withdrawal from exchange offices is very high.

Kamao points out that changers use many methods to prevent investors from withdrawing their bitcoins. High fees are one of these methods. Exchange offices, on the other hand, encourage investors to keep their bitcoins in exchange offices by providing services such as equity.

According to Kamao, the reason for encouraging investors is that exchange offices can sell bitcoins to traders to other buyers. On the other hand, paper bitcoin owners are also happy with their annual return.

As a result, Kamao argues that investors who buy bitcoin and keep it in exchange offices suffer; This is because the process allows exchange offices to print more paper bitcoins and as a result, as the supply of bitcoins increases, so does the price. For this reason, he asked consumers to keep their assets away from exchange offices. He believes that if investors want to change the world with bitcoin, it is better to do so with their real bitcoins. [نه با بیت کوین کاغذی]

Although many liked and retweeted Kamao’s remarks on Twitter, not everyone agreed.

A Twitter user nicknamed “Koning_Marc” told Kamau that his remarks were “unrealistic speculation” at best. In addition, another Twitter user, Felipe Encinas, responded to his remarks. This user says that if such a thing is true, changers can sell bitcoins without owning them, so such a thing cannot happen.

However, digital currency exchanges have not denied such a move. E. B. He, the head of LBank, told Kevin Telegraph that exchangers who do this will be punished.

He explained:

The market gives a good lesson to exchanges that sell bitcoins to their users; Because they can’t buy the bitcoins they sold. Such exchanges will definitely fail.

He also explains that digital currency exchanges, which are growing and thriving, are firm believers in digital currencies. They believe that bitcoin can be as high as $ 100,000, and as a result, instead of doing dubious things like selling bitcoins to others, they buy digital currency themselves.

So far, only Bainance Exchange has answered this problem. A spokesman for the exchange told the Telegraph that digital currency exchanges are not allowed to transfer funds to their users without their consent. He told the Bainance Exchange that the company does not open opportunities for trading in consumer assets and stores consumers’ digital currencies in complete security and in cold offline portfolios on the stock exchange.

The publication Expert opinion: Keeping bitcoin in exchange rates reduces prices appeared for the first time in digital currency.

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