For bitcoin bulls who self-custody crypto, the global risks are growing

https://www.cnbc.com/2025/04/06/bitcoin-self-custody-crypto-risks.html

The key insight from the CNBC report on self-custodial risk for bitcoin is that relying on a single private key creates a critical vulnerability—a single point of failure—that can lead to permanent loss of funds. While self-custody offers control, it demands careful planning to mitigate real-world threats.

For example, this year’s California wildfires left some bitcoin holders unable to access keys stored on devices or paper, highlighting how natural disasters can render funds inaccessible.

Most users still secure their bitcoin with just one key, ignoring the risks of storing it in a single location—like a safe deposit box that becomes unreachable during a crisis.

The article also cautions against focusing solely on small-scale threats, like break-ins, while overlooking larger regional risks such as political instability or exchange failures.

Ultimately, bitcoin holders must adopt a robust custody strategy to safeguard their wealth against both the predictable and the unexpected.