If we need custodians to scale Bitcoin they win and I fear they already have
Discussion
I disagree strongly
….. like to hear your reasoning Arman if you can summarise
Same
Bitcoins first solution is dismembering the hidden tax mechanism which is fiat and inflation. That system gets dismembered regardless of whether the adoption is costodial or not. Costodians will need to be 100% reserved and will have to settle back on chain which will force them to be reserved as well. It would be best if we fight the inflation fight first and then the tax fight second. This way we are not "money launderers" in the eyes of statist masses. The statists need to be onboarded before they can change their thinking on taxes IMO. This^ is the race to avoid the war.
You’re right.
Incremental progress is good. But the cypherpunk in me is disappointed, I can’t lie.
Don’t worry it’ll be chaos
Dismantling the power of central banks is hardly incremental.
The reason why the state question must be solved first is it will be much easier to allow ECash institutions to compete freely without threat of state violence or regulation.
We won’t be able to innovate out to 8B users until the people we are paying (with taxes) to stop us from being successful have been defunded.
Briefly...
Bitcoin ends central banks, and FIXES retail banking, not ends it.
Self custody helps win the war, but it's not required once we've won, and not required of everyone to win the war.
Custodians must be fearful of bankruns, and that enforces scarcity, even if not always backed 100% of the time, we still win.
