Altcoins News

Story: Cold Storage is Imperfect for Cryptocurrency – Investors not participating in…

By Dan Saada

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People are widely concerned about securely amassing wealth in the cryptocurrency era.  People are making use of cold storage methods, where they stash up their private keys…

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To discourage hackers from being able to access their wealth, they write their passcodes on strips of paper and then keep it in "safety deposit boxes.

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An excellent example of why cold storage is not good is the recent happening with QuadrigaCX.

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Beginners think that freezing the assets will hinder the investors from taking advantage of the fleeting fluctuations seen in the market.

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Some investors are not actively taking up roles in these networks.  Ultimately, these investors are set to lose out.

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Nathan McCauley, Co-founder, and CEO of Anchor Labs stated, "Imagine holding traditional equities and not being able to capture dividends."  

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Anchor Labs is currently focused on solving these problems.  McCauley further stated, “The cold storage providers are effectively going to be dropping dividends on the floor.

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Cold storage is not only potentially wasteful but also can have legal ramifications.

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Sherwin Dowlat, a Satis Group analyst, stated that several partners in investment funds would be able to consider practicing non-participation in the different crypto-economic…

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Chirs Dixon added, “Custody is the single biggest piece of infrastructure holding back the growth of the space.”

The Currency Analytics

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