Bitcoin

What Proof of Keys Celebration is and Why You Should Care

What Proof of Keys Celebration is and Why You Should Care

January 3rd of 2019 marks the tenth anniversary of the first-ever block of Bitcoin mined – the so-called genesis block. However, this January 3rd might also be the start of a new tradition, as famed Bitcoin investor Trace Mayer is inviting people to join in a ”proof of keys” celebration.

Proof of keys celebration lets people declare ”monetary sovereignty”

Put simply, Mayer’s suggestion for a proof of keys celebration is intended as an intentional cryptocurrency exchange run. Specifically, Mayer is encouraging people to withdraw all their Bitcoin and cryptocurrencies from third-party cryptocurrency exchanges on January 3rd.

The reasoning behind this is twofold. On the one hand, this is a way for people to prove that their cryptocurrency exists on the blockchain and that the exchanges are actually in possession of all users’ deposited cryptocurrencies.

On the other hand, proof of keys is as much a philosophical undertaking. Mayer argues that this is a way for people to declare their ”monetary sovereignty” and ensure accountability from third-party platforms.

”I think it’s important for us to declare, and redeclare, our monetary sovereignty on a regular basis,” Mayer notes in a YouTube video detailing his proposed proof of keys celebration.

This proof of keys celebration is intended to drive people to take control of their own private keys. Mayer argues that this is especially important as cryptocurrency investing has become more widespread during the past year.

As a result, there are many newcomers to both Bitcoin and cryptocurrencies in general. Moreover, some of these investors may not be aware of the best practices for cryptocurrency investing.

Prompting users to withdraw their cryptocurrencies and to hold their own private keys is, therefore, a way for investors to become what Mayer dubs ”first-class Bitcoin citizens” and prove their monetary independence.

Ledger Nano S - The secure hardware wallet

Cryptocurrency holders should withdraw money early

However, it should be noted that it could be important to withdraw funds early rather than later. Although it is impossible to know for sure what the effect of this initiative will be, it will likely lead to large cryptocurrency withdrawals.

If suspicions that cryptocurrency exchanges are, in fact, not holding all the cryptocurrencies they claim turn out to be true, proof of keys celebration could lead to a collapse of such fraudulent exchanges.

This means that it is important to withdraw funds sooner rather than later. Mayer himself noted that it would be advantageous for cryptocurrency holders to do this, to ensure that they are ”at the front of the line, rather than the back of the line” if there was to be a cryptocurrency exchange panic.

Nevertheless, it is naturally hard to predict whether or not this will come to pass. However, withdrawing cryptocurrency and taking control of your own keys as soon as possible could, therefore, both be a great way to redeclare ”monetary sovereignty” and guarantee that you will go unaffected by any potential cryptocurrency exchange crash. No matter what happens, we will know for sure on January 3rd.

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