Security breaches and hacks often highlight the risks of storing Bitcoin (BTC) on centralized exchanges. One analyst has even claimed that keeping BTC on exchanges is also a factor for price dips.
Rufas Kamau, research and markets analyst at Scope Markets Kenya, explained his thoughts on why keeping BTC on an exchange lowers the coin’s price. Kamau believes that buying BTC on exchanges only amounts to buying an “I owe you,” or IOU, which he describes as “paper Bitcoin.”