CoinShares Chart Shows 16% of Bitcoin (BTC)’s Circulating Supply is Already in Third-Party Hands
“Your keys, your Bitcoin. Not your keys, not your Bitcoin,”
narrative puts a question mark on the latest interest offering on digital assets by BlockFi. The latest data shared by CoinShares that details that more than 16 percent of circulated Bitcoin supply is in the third parties’ hands further shine the light on it.
Your Keys Or Compound Interest?
Recently, BlockFi launched an interesting account for digital assets that allows one to
“securely store Bitcoin or Ether at BlockFi and receive 6% annual interest, paid monthly in cryptocurrency.”
BlockFi Interest Account or BIA is BlockFi’s attempt to entice the customers which given the fact that institutional crypto loans firm Genesis Global Capital processed more than $1.1 billion in borrows in 2018, holds much confidence.
“We’re excited to leverage our relationships to provide yield on digital assets for crypto investors,” said the CEO of BlockFi, Zac Prince while further adding “BlockFi is the first crypto challenger bank. Bitcoin and crypto lending, especially to retail investors, is a nascent market. It has though been pushed on by institutional interest over the last year or so.”
Well, for one it is a good thing that it involves and boosts the institutional investors but as the digital asset management company, CoinShares points it out, “At least 16% of circulating bitcoin supply is already in third-party hands.”
The firm notes out some compelling points here, with the prominent one being the running narrative popularized by Bitcoin advocate Andreas Antonopoulos,
“your keys, your Bitcoin. Not your keys, not your Bitcoin.”
Bitcoin allows one the option of self-custody and as Matt Odell puts it,
“Take the time to learn how to store your keys yourself, that knowledge & understanding will pay dividends over time. It is way easier than it has ever been.”
But not everyone is willing to go for it as third-party custody of digital assets provides the convenience and in some cases, an incentive like compound interest offered by BlockFi that makes them a lucrative option for some to go this route.
No risk, no yield 🤷♂️
Also, holding most of your coins and lending some of them out are not mutually exclusive
— Pierre Rochard (@pierre_rochard) March 5, 2019
But the flagship cryptocurrency, Bitcoin that is borderless and censorship-resistant differs from traditional assets in the way that it gives the choice to completely own your own Bitcoin. And running your own node allows you to make that choice.