80% of Bitcoin holders would store it with their bank if they had the option – NYDIG
A recent survey by NTDIG shows that there are many hodlers that are willing to store their bitcoins with their banks. The study shows that up to 80% of crypto investors would like their banks and credit companies to store their assets for the sake of convenience and security.
The asset management company, NYDIG which is working to make it easy for banks to offer Bitcoin services to their clients has announced that most holders of cryptocurrencies would store them in banks if the option is readily available to them.
The assertion lays emphasis on the fact that most holders are seeking more convenient ways to store their coins despite the desire to be in control of their funds. This is despite the fact that just 6.3% of all circulating bitcoins are stored in central exchanges. The lower percentage in exchanges could be as a result of the high risks associated with hacking.
Why Some Holders Do Not Mind
Reacting to the report, Andrei Mihailov, a Bitcoin enthusiast said that he wouldn’t mind saving his crypto assets in a bank, since the status of his assets can be independently verified unlike gold.
He said that banks that wish to hold bitcoins for their customers should provide unique addresses to the owners of the crypto funds. This would enable the owners to track if their funds have been lent out to borrowers and the number of times the banks have done that.
It is obvious that the reason why there are many holders willing to save their coins in the banks is because they do not fully understand how Bitcoin works. Also, they are not aware that the concept of money as represented by cryptocurrencies seeks to eliminate the need for third-party involvement in its use and storage. There will always be people who would want third-party involvement in the storage of their crypto asset, especially among the elderly and the not-so-tech-savvy.
Banks May Utilize De-Fi Platforms
Banks may be taking advantage of this to cash in on the crypto craze considering that they actually offer better security around storage. We can see this through products that have been developed by companies such as Mataco and IBM. The growth of the de-fi space is also why banks are increasingly taking advantage of this for more efficient assets management for their customers.