Think there is surely counterparty risk with all outsourced custody solutions, but I thought his full answer was good. You don’t know for sure whether he has them at CB, Fidelity or self-custody. He explained why he doesn’t want you to know and that he’s only the hook civilly and criminally if he’s lying.
If you don’t want counterparty risk, don’t buy MSTR. But if you buy MSTR, he’s saying you have to trust those incentives.
Yes, I watched the full seven minutes.
For me, Bitcoin proof of reserves is easy and a no brainer. Just because it doesn't answer lots of other questions that require trust and have liabilities with false disclosure doesn't prevent you doing the one 100% provable thing.
And yes, I know the coins are held in Coinbase, and not necessarily segregated from other clients coins, so Strategy can't actually do this anyway.
What if they have them in self-custody, and he doesn’t want people to know that?
Also, the liabiliities part was a bit of a different point, which was that even if you could somehow point to the addresses, you would STILL have to trust MSTR not to screw you. So if you don’t trust because no proof of reserves, then why trust even with proof of reserves without proof of liabiliites?
Basically, if you’re gonna invest in MSTR (which might or might not work out), you’re stuck trusting the incentives of the people running the company.
They self custody 😱 😂
We're using the word "trust" here an awful lot.
Not sure why anyone would store his coins in a publicly traded company and not think there would be trust involved. No one is forcing you to do so.
And IF they self-custodied (not saying they are, I have no idea), you would surely not want the public to know it.
I think we have different opinions, but I totally respect yours.
