Reminder: Withdraw Your Bitcoin Off Exchanges

Coinbase dropped an earnings report today and with it came new language in their 10-Q about the legal claims retail users have in the event of a bankruptcy event. 

Reacting to new regulations from the SEC, Coinbase had to add language that communicated that retail users of their platform could have their assets held on the exchange rendered as property of the bankruptcy estate, in the event of a bankruptcy.

Maybe your Uncle Marty is a bit crazy, but I don't find the argument very convincing. Especially when you consider the fact that the government has been known to seize assets from American citizens in the past. ‘Member Executive Order 6102?

Needless to say, as it stands today and has stood since the first bitcoin exchange was launched, your bitcoin is not safe on the exchanges. 

Bitcoin exchanges represent third parties that are single points of failure that can succumb to human error, hacks and government coercion. 

You should eliminate this third-party risk by taking control of your wealth by holding your own keys. Sure, this also comes with some risks. 

You must have the ability to secure those keys, but there are ways to mitigate single points of failure while holding your keys. Multisignature wallets are a good way to eliminate single points of failure in self custody.

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