Would you rather:
1) #Bitcoin trade at 250k and >50% of coins are in self custody
Or
2) #Bitcoin trade at 69 million but >95% of coins in custodians
Be honest and please explain your choice…
Discussion
Scenario 2 is probably the most likely 👀 Most people will not be able to afford to own a UTXO 🤷
Self-custody all day.
Otherwise it Might as well just be fictional gold in fort Knox.
#2 is basically just a matter of time, but that's not necessarily a bad thing. We have to create and continue building the correct tools at L2 that provide the correct tradeoffs for different scenarios. There won't be a 1-size-fits-all custodian or L2 solution. Each will have varying degrees of self sovereignty and trust required.
L1 has one job - hard money nobody can fuck with ✅
No. 1 - Without self custody all you own is a permission.
Wait until other parts of the G7 world pull what Canada did and freeze everyone's bank accounts. #Bitcoin owned by a custodian is a useless illusion of wealth for #fiat focused individuals.
Unless you live a fully self sufficient life, you are effectively a slave without self custody of your life savings. This is true for any asset you use as savings.
Option 1. Because bitcoin is made to be in the hands of people, if something like 95% is in custodians it probably failed somewhere and it can all be seized like gold. Self custody and transact p2p.
The problem is that Bitcoin, as it is right now, isn’t able to scale enough for the majority to use it in a self sovereign way for p2p transactions. Also not with Lightning.
This is going to be a hard problem to solve.
2) is like...never gonna happen, ever.
Not because of the 69m, but because satoshi will never give his coins to a custodian and he owns more than 5% (if we guesstimate the ~1.1m patoshi-number).
And he's not alone in never given them to someone else.
But to answer ur question honestly:
I don't give a damn.
Seriously, I'm fine now, II'll be fine with 250k, even more so with 69m and why would I care where other people store their coins?
I just keep them where they are (in my self-custodial-butt oc).
Option 1.
If >95% are owned by custodians, it's only a matter of time before printing starts and the value drops.
I wonder if there’s a chart showing when a certain value UTXO becomes un-spendable against price/fees.
Centralization to some extent sadly seems inevitable if there aren’t more solutions to scaling in the future.
Everyone in the world can’t own a UTXO as of today, right?
I would rather nothing. The markets will decide as they should