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Author Topic: Hardware wallet demand increases in 2022 bear market as exchange scramble  (Read 692 times)
m2017
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July 14, 2022, 03:14:51 PM
Merited by Lucius (1), Pmalek (1)
 #21

As for the quality of the device that I bought a few years ago, I can't say anything bad, because nothing broke and everything works as it should from day one. It is possible that problems in quality and functionality arose as a result of the use of lower quality materials, and possibly a less experienced workforce.
Perhaps, many users of the ledger's products will agree with you and also don't experience any problems with their hardware wallets, but still, breakdowns do occur. I don't think that this is a statistical error, but more like the poor quality of the materials used, as you say. A cracked display or a plastic case, as well as failed buttons, are not the most expensive elements in the design of this devices. It would seem, why not improve their quality. After all, it doesn't require a lot of financial investment for this. But if we take into account the multi-million dollar sales of ledger's devices, then saving even on such trifles will result in a large amount. Really, business in the most ordinary greed? But on the other hand, this company's support service, apparently, works flawlessly and is ready to provide a completely new device during the warranty period - https://bitcointalk.org/index.php?topic=5393971.msg59864720#msg59864720. Without having to send a broken device, which deserves special praise.
 
I also thought that Ledger will lose the user's trust after the data leak scandal, but it's obvious that most people don't value their privacy enough to blacklist such a company. And as you say, a good advertising strategy still keeps them on top and probably targets those completely new investors in the crypto world who are probably not aware of anything that happened in the past.
In a world in which there is a very large information flow, such the data leak news is very quickly forgotten and, of course, remains unknown to new potential buyers of ledger devices. Such problems are discussed only in thematic forums and sections, in which there are not so many views. Most often, users look into these sections only when they have personal troubles with their HW devices, which leaves these the lledger's data leak news out of the information flow of new investors.

Another fact that works in their favor is that, apart from Trezor, they have no real competition that can offer a product for the masses at a more favorable price, and at the same time gain more trust in the short term. I can only say that my next HW will not be from Ledger.
It seems that this is also true. This company has already occupied a very large market share and new companies (which appear from time to time and offer their own unique solutions) are not able to compete with them on a serious level and on such a scale. Which, in my opinion, is not good, because it reduces the variability of devices, allowing the emergence of new hardware wallets with completely unique solutions and operating principles.

I also have a small theory that potential customers prefer the Ledger design in the form of a classic USB stick, rather than the design developed by Trezor - which attracted me to buy Ledger at the beginning.
In modern society, it has become important not only to provide a "cool product", but to be able to make it stand out from the competition and attract buyers. Even if there are questions about the quality of devices, as is the case with the ledger company. Still, buyers pay a lot of attention to the "cover" and appearance.

It is also the merit of this manufacturer that they better studied the needs of their customers and offered exactly the design that began to be in great demand. It seems to me that the company understood better than its competitors how to "serve a dish" and in "what form", which, accordingly, allowed it to dominate sales of HW devices.

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July 14, 2022, 03:33:18 PM
 #22

Those who use the exchange, those who want to exchange one coin for the other see exchanges as a bus stop and a transfer ground. But for storing Bitcoin almost every investor and holders know the vulnerability of exchange and the risk involved in leaving your coins on the exchange since you don't have the private keys to the wallet, but with a hardware wallet, one can store Bitcoin for as long as possible without fear of hack or phishing attacks.
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July 14, 2022, 04:39:52 PM
 #23

As the 2022 bear market persists, crypto exchanges announce losses in revenue such as coinbase and binance.
A Hardware crypto wallet firm LEDGER has announced the highest shipment of its hardware wallet in 2022, amid the present bear market the CEO Pascal Gauthier went further during an interview with coin telegraph that the 2022 bear market has a heavy impact on centralized exchanges since users of those exchanges are moving funds off the exchange because of the fear losing they funds and optioning to store them on a hardware wallet where they have control of the private keys this results into the increase in the demands of the ledger hardware wallet presently.
https://cointelegraph.com/news/hardware-crypto-wallet-sales-increase-as-centralized-exchanges-scramble
It would be interesting to know if the number of people installing a wallet like electrum is also going up as many people simply do not have enough money to justify buying a hardware wallet but they could still want to secure their coins, so this would be a good metric to see if those people are also leaving exchanges behind.

However wanting to get complete control of our coins should not need a bear market but it is nice to know that people are striving to reach that goal and get control over their coins once again.
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July 14, 2022, 08:34:33 PM
 #24

It would be interesting to know if the number of people installing a wallet like electrum is also going up as many people simply do not have enough money to justify buying a hardware wallet but they could still want to secure their coins, so this would be a good metric to see if those people are also leaving exchanges behind.

However, wanting to get complete control of our coins should not need a bear market but it is nice to know that people are striving to reach that goal and get control over their coins once again.
That is also an important point because the number of individuals' wallet usage is also a determination towards the existence of exchange storage to personal wallets with the keys. After all, those wallets are recoverable and users are in total control of their coins.

But come to think of it, not that hardware wallets have it own  challenges.
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July 14, 2022, 09:37:52 PM
 #25

Their devices may be cheaper, but the quality is very questionable. Housing and display failures are a common occurrence, not to mention that the ledger has repeatedly fallen into incidents with users' personal data. Most of the troubles in Hardware wallets section are dedicated to the products of this company. All this together should have stopped crypto users from using ledger devices, but as we see from this news, it turns out the other way around and a hardware wallets with mediocre quality leads in sales. I see only one explanation: the influence of advertising and the good work of the marketing department with many other shortcomings of ledger.

As for the quality of the device that I bought a few years ago, I can't say anything bad, because nothing broke and everything works as it should from day one. It is possible that problems in quality and functionality arose as a result of the use of lower quality materials, and possibly a less experienced workforce.

I also thought that Ledger will lose the user's trust after the data leak scandal, but it's obvious that most people don't value their privacy enough to blacklist such a company. And as you say, a good advertising strategy still keeps them on top and probably targets those completely new investors in the crypto world who are probably not aware of anything that happened in the past.

Another fact that works in their favor is that, apart from Trezor, they have no real competition that can offer a product for the masses at a more favorable price, and at the same time gain more trust in the short term. I can only say that my next HW will not be from Ledger.

I had a ledger nano for years and it works as intended. The problem with hardware wallets is that they require some sort of software and that software is more vulnerable than the device itself.
Trezor is not much better because there's a video on youtube where some guy managed to hack into it by physically altering the device, so with the right knowledge and tools it's possible to fool it into thinking that it should verify the transaction.

Bear markets usually look like this. People don't want to trade in this market so they move coins back to their wallets for safety. It's more about choosing not to participate in the market than being afraid that governments could shut down exchanges.

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July 14, 2022, 09:47:00 PM
 #26

It would not surprise me all that much if the hardware wallet rise in demand came from the extremely painful lessons some people have made in the past few weeks and months regarding the all important law of "not your keys, not your coins". I am of course talking about fiascos like the Celcius withdrawal freezing and bankruptcy declaration. People need to understand that only they are responsible for their money, nobody else.

Although I would be careful with new scams and hacks regarding hardware wallets bought from third partys in the coming months. I would not trust to buy a hardware wallet unless its directly from the source or a reputable vendor.

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July 14, 2022, 09:59:14 PM
 #27

It would not surprise me all that much if the hardware wallet rise in demand came from the extremely painful lessons some people have made in the past few weeks and months regarding the all important law of "not your keys, not your coins". I am of course talking about fiascos like the Celcius withdrawal freezing and bankruptcy declaration. People need to understand that only they are responsible for their money, nobody else.

Although I would be careful with new scams and hacks regarding hardware wallets bought from third partys in the coming months. I would not trust to buy a hardware wallet unless its directly from the source or a reputable vendor.
Not surprising where people do mind off about total security on the times where hacking accidents and losses because of stolen funds is really becoming that rampant which these steps should
have done earlier.As anticipated where people do only learn up things when unfortunate things happen again. Me whether its a bull market or bear then i have secured out my hardware wallet
and save up my assets which are good for long term.Only the amounts that i do put up on any platform or custodial wallets are the amounts which i do tend to rolling it out
to make some profits and those profits would be sent out on my HW for long term purposes.

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July 14, 2022, 10:56:27 PM
 #28

As the 2022 bear market persists, crypto exchanges announce losses in revenue such as coinbase and binance.
A Hardware crypto wallet firm LEDGER has announced the highest shipment of its hardware wallet in 2022, amid the present bear market the CEO Pascal Gauthier went further during an interview with coin telegraph that the 2022 bear market has a heavy impact on centralized exchanges since users of those exchanges are moving funds off the exchange because of the fear losing they funds and optioning to store them on a hardware wallet where they have control of the private keys this results into the increase in the demands of the ledger hardware wallet presently.
https://cointelegraph.com/news/hardware-crypto-wallet-sales-increase-as-centralized-exchanges-scramble

It create huge demand because many people got afraid on what will happen to their coins stored their since there are scenarios that exchange scam or hold the balances of their users for long years. And people cannot afford that it will happen to them that's why this series of events is not surprising because many people want to secure their funds and wait until the bull run came safely.

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July 14, 2022, 11:04:05 PM
 #29


It create huge demand because many people got afraid on what will happen to their coins stored their since there are scenarios that exchange scam or hold the balances of their users for long years. And people cannot afford that it will happen to them that's why this series of events is not surprising because many people want to secure their funds and wait until the bull run came safely.
Perhaps, the idea of moving your funds into a more secure wallet which is a hardware wallet has been gaining more recommendations and suggestions. As if you are a bag holder and of having a huge amount of Bitcoin your mind now is to think to find a safe wallet to protect it and seeing/hearing people talking about hardware wallets gives them an interest and this is what is happening now. This is not actually surprising for I know that this will come as the market continue to develop where new technology could possibly hit the market. Imagine how these computers have been a growing industry.

R


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July 15, 2022, 09:24:43 AM
 #30

That brings the next problem: available block space. If 100 million people want to transfer Bitcoin from an exchange to their own wallet, and then make a transaction by themselves, that's 15 GB and takes months to process on-chain.
I can't comment on the numbers and estimates, but I will take your word for it. Luckily (in this case), the awakening doesn't happen simultaneously and people realize little by little that it's wrong and dangerous to store your coins on exchanges. So we don't have to worry about exchange users flooding the mempools with withdrawalal transactions. Not yet at least.   

As I already wrote, our devices were made in a different time when materials were cheap and easily available, and the demand for HW was probably not like today - so even though they are the same devices, according to everything I could see and read these the new ones seem to be of lower quality.
I know. I have mentioned a few times that there are differences between the earlier Nano X batches and the more-recent ones that started having battery and charging issues. 

I am not aware if Trezor has such problems, although I have to admit that I can't remember anyone on the forum complaining that they have a broken Trezor, or that something on the HW is broken or doesn't work as it should.
I do remember reading about a few broken Trezor cases and I have a picture in my head of a user duct tapping the USB cable to the device because it wasn't working otherwise. Maybe that exact picture is posted somewhere in my showoff your hardware wallet thread, or I saw it elsewhere else. But nothing significant. I am sure you could find problems with Trezor's as well if you dig for it on Reddit. I am not really interested in that though.

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July 15, 2022, 10:05:18 AM
 #31

I think as more and more strict regulations are implemented on Crypto currencies, people will start to look for alternative ways to store their Private keys and they are also getting more familiar with the concept of controlling their own Private keys and not giving that power to 3rd party Exchanges.

The Crypto exchanges are the weak link in the Pseudo anonymity of Crypto currency holdings and people are recognizing that now. We cannot discount the fact that criminals are also buying more hardware wallets to protect their proceeds from criminal activities.  Roll Eyes

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July 15, 2022, 10:38:23 AM
Last edit: July 15, 2022, 11:11:32 AM by franky1
 #32

I've seen claims of up to hundreds of millions of Bitcoin users, while there are only 42.5 million funded Bitcoin addresses. If those claims are true, it can only mean the majority of Bitcoin "users" treats Bitcoin as a stock, keeping "their" coins at an exchange/broker.
bitocin addresses july 2021-2022 was 37m to 42m = 5m difference
the article claims of $1m a day revenue
which is about $80 a ledger single unit which is 12500 units a day = 4562500.. so its in the realms of possibility of acceptable numbers that they suggest are buying ledgers in the last year



I think the number of people holding Bitcoin in self-custody will increase.
That brings the next problem: available block space. If 100 million people want to transfer Bitcoin from an exchange to their own wallet, and then make a transaction by themselves, that's 15 GB and takes months to process on-chain.

error one
imagining all 100mill exit an exchange at the exact same moment to all be waiting "months"
~1700tx a block * 144 blocks = ~240k tx a day
4days per 1m = 400days for 100m users
(^math of YOUR bias assumption)

but here is the thing. 100m people dont all buy bitcoin in one day
coinbase over 8 years only has(suggested)80m customers(reality more like 60m)
using that 80m suggested number .. thats only 10m a year meaning if everyone each year exited coinbase
=27.4k a day.. which is only a 11.2% of a blocks data
which is manageable. especialy when coinbase batches tx's into multiple outputs per tx. to also reduce that bloat per day/block to below a 4% mempool increase


error two
thinking that in the era where people have terrabyte hard drives you stil think that 15gb for "months" of data is alot
sorry but one 2 hour blue ray movie.. yep just 2 hours.. is 50GB+
a PC game or PS5 is not small..
(F1.. assassins creed, Call of duty.. all are over 100GB each)

HD youtube video streaming. twitch live streaming is not small..

put things into actual context

error three
its becoming obvious by the usual crowd you socialise with that your biases against bitcoin form purely to promote another network. so please try to put things into a proper prospective and not a altnet leaning prospective.

I DO NOT TRADE OR ACT AS ESCROW ON THIS FORUM EVER.
Please do your own research & respect what is written here as both opinion & information gleaned from experience. many people replying with insults but no on-topic content substance, automatically are 'facepalmed' and yawned at
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July 15, 2022, 02:09:05 PM
 #33

It's reasonable if you think about it. I mean we are talking about a bear period where it would not make sense to spend money on buying something, and there are plenty of people who do not sell neither. So, if you are not trading it, then why keep it in an exchange? This is why many would be on the way of "keep your money safe" and buying some hardware wallets.

It is only logical for people to have some crypto saved aside at these type of periods and I understand it. This doesn't mean that we are not going to make any type of profit at all during this period, but trading is a lot more riskier right now than any time before, so it would be smarter to just store it in a hardware wallet.

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July 15, 2022, 02:28:18 PM
 #34

I find this a very good news.

This only shows that many are starting to be well educated on how risky it is to keep their funds into exchanges. Many of us have been voicing that for years until the majority of hacks had come and now it's worse, exchanges disabling the withdrawals of users money.

I think that the demand for hardware wallets will continue to increase even for the next years.



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July 15, 2022, 03:40:17 PM
 #35

Keeping your cryptocurrency investments safe is extremely important today, and thanks to the many established organizations that have provided crypto enthusiasts with secure storage options via hardware wallets.
hardware wallets add an extra layer of security to protect your cryptocurrencies from unwanted incidents especially hacking.
it may be in an uncertain bear market situation, and the purpose of a hard wallet is to keep its holdings for a long and safe period of time and also wait until the market returns to bullish.

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July 15, 2022, 06:59:49 PM
 #36

@PrivacyG, Trezor supports 1816 coins&tokens, but I'm not sure what that number is with Ledger, although some claim that the number is really much higher. If the reason for better sales is just shitcoins mania, then someone is going to be in big trouble when things go downhill.
Trezor's supported Altcoins are mostly Binance Smart Chain or Ethereum Tokens.  Natively supported coins are very few. Ledger on the other hand has a ton of apps on their Live software for tons of Shitcoins that are not supported by Trezor although they have been very popular at least once before.  This is why I mostly say they choose Ledger over Trezor for Altcoins.  If you check out Trezor's list of supported coins excluding BSC and ERC Tokens, there are only very few that are actually supported.  That is, except coins that have bridges to BSC and ERC which I obviously do not count.

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July 15, 2022, 07:36:24 PM
 #37

Keeping your cryptocurrency investments safe is extremely important today, and thanks to the many established organizations that have provided crypto enthusiasts with secure storage options via hardware wallets.
hardware wallets add an extra layer of security to protect your cryptocurrencies from unwanted incidents especially hacking.
it may be in an uncertain bear market situation, and the purpose of a hard wallet is to keep its holdings for a long and safe period of time and also wait until the market returns to bullish.
Good security reasons are one of the reasons why hardware wallets are becoming the choice of cryptocurrency users. Moreover, the increase in bitcoin users (traders, investors) during last year's bull market is the reason why there is an increase in demand for hardware wallets. Looking back at how bad it is to store assets on a centralized exchange should also be a holder's consideration to owning a hardware wallet, so those are some of the reasons that support the increasing demand for these wallet.

Unfortunately I don't have any hardware wallets so far, but still think it's safe to store some of my bitcoins on electrum not connected to the internet. I might have it soon, but maybe not right now.

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July 15, 2022, 08:35:59 PM
 #38

As the 2022 bear market persists, crypto exchanges announce losses in revenue such as coinbase and binance.
I believe hardware wallets experiencing huge demand means the crypto market will be incredible in the next few years because crypto enthusiasts appear to have abided by the idea of "not your keys not your coin"
Having said that, I'm unaware of the listed exchange loss but what you said explains the reason why they started no trading fee on BTC last week and there's still no point in their no trading fee if they didn't stop their ridiculous withdrawing fee which is totally unfair.
I don't want to talk about Coinbase because it is never an exchange from my end.

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July 15, 2022, 11:20:53 PM
 #39

I find this a very good news.

This only shows that many are starting to be well educated on how risky it is to keep their funds into exchanges. Many of us have been voicing that for years until the majority of hacks had come and now it's worse, exchanges disabling the withdrawals of users money.

I think that the demand for hardware wallets will continue to increase even for the next years.
With exchange you don't have a wallet, because not your keys not your wallet and exchange does not offer good security to secure funds and most exchanges hot wallets are always hacked into and millions of dollars are stolen from exchanges frequently, so that raised a lot of worries for long term holders. That is why attention is now shifting to hardware wallet since hardware wallet offers user strong security and holders are in control of the wallet with the private keys.
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July 16, 2022, 05:25:54 AM
 #40

the number of hardware wallets should increase if the demand of crypto keep higher up not just bear market in my opinion as like everyone said "Not your keys not your coin" especially happen with recent news like Celcius or other platform that pending withdraw their money

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