some Bitcoin exchange: *collapses because they screwed up investments*
Silicon Valley Bank: *collapses because they screwed up investments*
Bitcoin isn't better.
Discussion
not your keys, not your coins. centralized custodial services always have the possibility of failure
sure, but it's very inconvenient to keep wealth personally. i'd have to keep gold in my house or something. it's too complicated for most people.
that's what Bitcoin fixes. I no longer need to keep gold in my house. I can keep my Bitcoin in cold storage on a device smaller than a wristwatch. no trust in a centralized custodian required.
Exchanges aren’t bitcoin. FTX didn’t even have bitcoin on it’s balance sheet.
actual Bitcoin isn't attractive. you actually have to pay for it to get it.
Yeah self custody is less than convenient for normal people right now, but we’re still early. It’s only getting easier to be your own bank with bitcoin
the main reason you run a bank is to make money off credit. Bitcoin isn't a bank replacement.
The point is to replace that dangerous profit scheme that ends up hurting normal people. From a bank perspective it doesn’t replace their business plan, but from a consumer standpoint it replaces their exposure to that scheme.
It’s impossible to get a hold of my bank, they screw up my ledger all the time, and they’re constantly telling me that buying btc is not a typical transaction and that I need to call them. Banks are way more inconvenient than holding btc in cold storage.
We are still early. Once this picks up more steam more convenient solutions will be offered.
Grandma will not get scammed as easily