How risky is it to hold funds on lightning wallets? I just read a review of someone saying they lost their money on there. I have heard mixed suggestions of not leaving more than 10-100k sats on there.
Just a humble pleb,
#plebchain #bitcoin #lightning #asknostr
You can't create 10-100k sat channels. So then it will just be the custody risk.
If you self custody on lightning, the risk is dependent on your setup. Greatest risk is that it nukes itself. Different setups have different scopes of backups.
Maxis think that everyone can run safely and securely a lightning node. But this is not correct, as the code for the nodes often has vulnerabilies that are fixed constantly. Just a couple of days ago I saw that a critical bug in one of the node softwares was fixed. So: Even if a normie could run it safely on his side, there is still a chance that the code he uses is not secure!
Furthermore I I did not even mention channel management.
Plus I don't see a problem to hold long-term sats onchain and use a custodial wallet for short-term sats.
I would even argue that for hyperbitcoinization we need lightning custodians.
Been using a custodial lightning wallet for years without issues but there's always a risk. So indeed, don't keep a life changing amount on there.
Not just risky but also bad for Bitcoin's overall strength as a currency in the fight to collapse the US dollar
Even if you don't lose any sats, having your coins in the same system where other people lose sats leads to a form of inflation
