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Crypto Research

Modern Economic Nonsense — The Bitcoin reserve is coming



Digital currency Bitcoin has been around for almost 12 years. After all this time, we’re still wondering when the first Bitcoin exchange will go live. The wait for an exchange isn’t as long as it was back in 2014. Back then, there were only a handful of digital currency exchanges that supported BTC trading. Thanks to blockchain technology advancements and more regulated markets, the landscape has changed massively over the last few years. In late 2017 alone, we launched several new platforms catering to traders and investors. With regulated security standards and the latest security technology available today, it’s only a matter of time before an exchange becomes operational on a mass scale. 

Bitcoin Deposits on Exchanges

There are more and more people showing interest in Bitcoin, the demand for trading platforms has also increased exponentially. This will lead to the launch of a number of new exchanges over the past few years. In fact, we’ve witnessed the launch of over a dozen new exchanges in 2017 alone. As a result, there are over 100 registered exchanges in the world. The world of cryptocurrency trading is still in its nascent stages. A lot of things are yet to become standardized. One such aspect that needs to be standardized is the way exchange platforms deal with deposits of Bitcoin. This can be done in a different way, depending on the platform you choose to trade on.

Bitcoin Withdrawals from Exchanges

A withdrawal of funds from an exchange is extremely easy. Simply find the desired trading pair in the platform’s trading view and send the required amount of Bitcoin to the address provided in the trading view. Now, a lot of people prefer trading altcoins with Bitcoin. In fact, a lot of investors use Bitcoin as a trading pair with various altcoins. Luckily, most exchanges currently allow investors to withdraw a maximum of Bitcoin. Withdrawals can be done by exchanging other digital assets for Bitcoin, bank transfer, or credit card.

Bitcoin Security

We’ve discussed the importance of security in this article. At the same time, you should know that security is a priority for all exchanges out there. Every single exchange follows stringent security protocols to protect their users. This is how all exchanges ensure that each user’s funds are kept safe. Some of the security protocols that all exchanges follow include strict KYC and AML policies, a robust security infrastructure, and multi-factor authentication. All four major exchanges in the world (Bitfinex, Coinbase, Gemini, and Coinbase Pro) have recently been victim to security breaches. All four exchanges have subsequently strengthened their security protocols to protect users’ funds.

Bitcoin reserve

Bitcoin is a digital currency that relies on blockchain technology. Blockchain is a decentralized ledger that records all cryptocurrency transactions. Although blockchain technology is pretty secure, it can still be compromised by cybercriminals. All major digital currency exchanges store a small portion of their users’ funds in what’s known as a Bitcoin reserve. This reserve is a safety measure to protect users’ funds in case of a hack or cyberattack on the exchange. This reserve provides protection against the loss of funds during times of disruption or outage. All Bitcoin exchanges that store a reserve also issue a unilateral guarantee that the reserve will not decrease over time. This means that every single Bitcoin exchange will maintain the same reserve ratio over time.

Future usage of Bitcoin

As we’ve seen, there are many benefits that come with trading Bitcoin on an exchange. But we need to be aware that exchange can be dangerous to keep all your assets in and it is better to store into your wallet. However, we do have some good news. The first exchange to offer Bitcoin trading will be Coinbase followed by Gemini. Both Coinbase and Gemini have announced that they will support trading of different cryptocurrencies. Other exchanges are expected to launch trading of non-crypto assets. We’ll be sure to keep an eye out for these exchanges and let you know when they go live.


As you can see, there are many benefits associated with trading Bitcoin on an exchange. With regulated security standards and the latest security technology available today, it’s only a matter of time before an exchange becomes operational on a mass scale. The wait for an exchange isn’t as long as it was back in 2014. Back then, there were only a handful of digital currency exchanges that supported BTC trading. All thanks to advancements in blockchain technology and more regulated markets, the landscape has changed massively over the last few years. Bitcoin deposits on exchanges, Bitcoin withdrawals, and future usage of Bitcoin – a lot has changed in the world of Bitcoin since we last wrote about it in 2017. If you’ve been curious about Bitcoin since it first came out, you’ve come to the right place. With regulated security standards and the latest security technology available today, it’s only a matter of time before an exchange becomes operational on a mass scale.

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Crypto Research

The Future of Machine War II



In late 2021, I wrote an article about A.I. vs. Blockchain. I realized it was closer than I expected.

Web2 is leading a future of technological centralism. 

The way we see the world in ancient is what we saw became what we believed. Later, the enlightenment process helped humans realize what they had seen was disguised by the nature principle. Once we tested our assumption and received accurate results, we thought we had mastered the nature principles. Yet, we did not make the world better than we thought we could. 

We are living in a world in which companies know more than you than yourself. Companies can likely tell you what you should believe without letting you know. 

The secret weapon that companies like Google invented is A.I. or Artificial Intelligence. 

If A.I. can think like a person, it can easily replace you! Since companies got all your data, you freely offer them by using their free services, and they can replace you one day without you realizing it. 

Without all conspiracy theories behind what Google may or will secretly develop, A.I. reaching consciousness is … impossible.

If it does, Google has successfully made a human – dumb!

The most advanced A.I. – Tesla Autopilot Program cannot distinguish objects between humans and other moving objects during driving.  

Using technology makes people dumber than they think because it takes away your consciousness – the ability to think uniquely!

Blockchain is the future of decentralization.

We need a peer-to-peer system to regain consciousness and break the chain from Web2. 

It gives individuals the power to rethink information.

Think about today’s media; all information is filtered to offer readers without any surprise. News is data that Web2 selected specifically for you to read. 

We need a decentralized system so that you can receive unfiltered information and gives you a surprise that sparks ideas of imagination.  

Web2 is afraid of the blockchain because they are too big to fail. 

 They mimic the blockchain by creating a centralized node system – social media network. 

It is a net growing outward through a single point. Only the problem is that connection is facilitated by technology. And the biggest failure is such technology has a single point of failure problem. 

And they cannot escape the law of economics – the law of diminishing. So we will see Web2 grow slower due to the law of diminishing that they require more data with few increments of advancement through A.I. without any breakthrough because A.I. is a deterministic system that works with a lack of randomness. 

In Web2, they assumed everyone was stupid, and they offered solutions to everyone.

In Web3, everyone is good and should anticipate solving a problem together.

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Photo by Aideal Hwa on Unsplash

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Crypto Research

Financial sanction to mixers



Have you heard about financial sanctions from the US on virtual currency? At least, I have not yet. But the US Department of Treasury has issued sanctions on two crypto services: and Tornado Cash.

To clarify, the US sanctions on tools but not target specific entities or groups of people.

So why bother to sanction something that the government probably won’t be able to sanction in the first place?

What is a mixer?

A cryptocurrency mixer, sometimes referred to as a tumbler, is a tool for money laundering. The sole purpose of the invention is to make transactions untraceable.

How to mix?

Even crypto is pseudo-anonymous, but it is traceable through your wallet address. A mixer is a black box service to filter your traceable wallet address into the untraceable wallet address.

How to wash your money clean in the traditional way?

The assumption is you will not get caught at each stage, and then you place your dirty money in a bank through companies and use the funds to purchase legal goods like houses or luxury goods.

There are mature regulations and rules to stop you from putting your dirty money into banks.

Digtial money landury

A Crypto mixer or tumbler is a service to pool dirty digital currency in their favor and redistribute it into designated wallet addresses or addresses randomly generated. 

It is a challenge to stop transactions because there is no entry point for law enforcement to stop at each stage.

Ultimate Mixer

Tornado Cash is the king of the mixer. Unfortunately, there is just no way to trace transactions anymore. It is a smart contract with zk-SNARKs (zero-knowledge proofs) that does not require revealing a wallet address during transactions and ghostly distributed funds without leaving any traces.

This tool is the ultimate weapon that the government has to shut down, or there is no way to prevent transactions.

In Conclusion

Let’s change the future – legally. 

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Crypto Research

Why there is not crypto banking exist



We have always heard about cryptocurrencies, crypto exchange, banking, and trading platforms, but we do not really grasp the idea of crypto banking. Crypto banking is a contradicted idea. If crypto is to replace banks and give users full control of digital money, why do you put your crypto into the bank? The new research paper argued that there are risks for banks to adopt crypto, but they did it anyway.

Banks want crypto

Cryptocurrency has a rough road at the beginning and continues to experience a bumpy road ahead. The institutional investors were watching its performance. In early 2017, institutional investors had opportunities to adopt crypto, but they found out the return of the investments was less than traditional financial assets. Regulations were not a concern for some individual institutional owners, but banks were conservative at the time. As a result, some investors adopted it in early 2018 than banks did. Then suddenly, the crypto market took off in 2020, leaving many banks to regret their decision in 2017. Many banks set up their digital investment group to rush into the market and increase prices. Of course, many of their investment positions are instead of shadow positions. It is unclear how much they have been invested in and what vehicles they took to invest in cryptos.

Crypto Exchange

Crypto exchange is a bank-like platform for crypto. Banks offered a place to purchase fiat currency. Crypto exchange did the same duty as traditional banks did. Since there was a gap between the crypto and banks, the crypto exchange took responsibility and offered crypto services. The crypto exchange took off after 2020, and they left banks in the dust. Then, crypto winter came in early 2022, and banks again hesitated to enter the crypto and started denouncing crypto usage, particularly in the Defi area. But interestingly, they tried to find ways to get into crypto without being directly exposed to cryptocurrencies—hint: through hedge funds.

How much banks exposure to crypto

We do not know how much banks have been exposed to crypto. We learned that the big Wall Street players were exposed to the services of the digital asset through State Street of their $41.7 trillion assets. Some have been exposed due to Luna’s collapse and 3AC bankruptcy. But again, no specific dollar amount was provided. 


Since the crypto winter, institutional investors have been cautious about crypto exposure. However, crypto exchanges are the winner again. They are exposed to crypto and take risks more than banks do. As a result, they likely will weather the uncertainty. Furthermore, there is no need for crypto banking to handle your crypto assets since many such services will not survive long in the crypto environment. 

Crypto is resilience

Despite its fluctuating price and unsecured assets, crypto is resilient to phase out any bad business ideas and bad actors in the economy who wants to or try to dominate the market but who transfers risks to users to believe they are the one who should take responsibility for their carelessness. Unfortunately, those business models will not survive long.

If you enjoy reading my articles, buy me a coffee here.

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