Your Crypto Might Not Actually Be Yours
StudyBuddyC2 min read·Just now--
Last week, a friend texted me to ask if I still had Bitcoin on Cash App. I replied, “Yeah, why?” He then sent me a screenshot of a tweet about another exchange going under, claiming their reserves were reportedly gone. He asked, “Are you sure they actually have your coins?”
To be honest, I wasn’t sure. I had just assumed they were there.
This is the issue that doesn’t get discussed enough. When you deposit Bitcoin, you see a number on a screen, and you trust that it’s accurate. You don’t really know if the Bitcoin is actually there or if it has been secretly moved elsewhere. After the FTX collapse, you would think we’d all stop making assumptions, but most of us haven’t.
Block recently made a change to address this. They introduced on-chain proof-of-reserves for their corporate Bitcoin treasury, which means anyone can verify the holdings directly on the blockchain. There’s no middleman and no press release you have to take at face value. The math either checks out, or it doesn’t.
While it’s not a perfect solution, it’s the kind of move that makes you question why other companies haven’t implemented something similar.
That’s a thought worth considering, and the article provides a comprehensive breakdown of what this development means for your funds → Block Intros Bitcoin Proof
