Tech billionaire Elon Musk often proves that he is a supporter of cryptocurrencies, and he supports virtual currencies on Twitter. So when he talks about the encryption industry, the whole world is paying attention to him. In his latest tweet, the CEOs of SpaceX and Tesla used one word to provide warnings and advice to all cryptocurrency investors.
Bill Lee, the founding partner of West Coast Holdings, an investor in some of Musk’s businesses, responded to a tweet about reducing reliance on crypto trading platforms, stating that investors cannot be in their hands until they have the keys. Claim assets from the digital wallet to the wallet. Musk doubled down on this suggestion, with only one word “exactly.”
-Elon Musk (@elonmusk) November 24, 2021
The proposal was made after the encryption gateway MyDogeWallet posted its vision on Twitter, which is to “break the reliance on CEX such as Binance and Robinhood, and let Shibes manage its own tokens.” The term “Shibes” here refers to the followers of the Shiba Inu mascot that has become a synonym for Dogecoin.
In this regard, Bill said, “It’s not your key, not your cryptocurrency.” Musk commented in the post, “Exactly.”
All digital wallets use a pair of digital signatures for each transaction, called a key. One of these encryption keys is private, while the other is public. These keys help track ownership, receipt or use of cryptocurrency. The public key allows other encrypted users to pay to a specific wallet from which the key is derived. The private key enables the wallet owner to use cryptocurrency.
If users lose their private keys, they will no longer be able to access the wallet for transactions such as consumption, withdrawal or coin transfer. Therefore, it is wise to keep the private key in a safe place and do not lose it.
In addition, not owning the private key may mean that the wallet owner has entrusted a third party to protect the security of their assets. In this sense, Bill is likely to use the expression “not your key, not your cryptocurrency”, and it is supported by Musk.