Many security breaches and hacks highlight the potential dangers associated with storing information (BTCYou can also buy centralized currency exchanges. Analysts claim that having your BTC listed on exchanges can cause price declines.

Rufas Kamau is a Scope Markets Kenya research and markets analyst. He shared his views on why keeping BTC on exchanges lowers the coin price. Kamau claims that BTC purchased on an exchange is equivalent to purchasing an IOU (I Owe You) of the cryptocurrency, which he calls “paper bitcoin.”