Sure, it's an improvement over gold, but the 99% of people who don't care about verifying gold reserves also won't verify bitcoin reserves, they just want exposure to the price.

How many people bother to verify binance and coinbase's utxos and compare this to their accounting books?

Moving coins from coinbase to Bitrefill is only a thing because the banks don't let you hold paper bitcoin (yet). When they do, there's no need for real bitcoin to be in the loop at all unless the user really wants to buy something which cannot be purchased with anything other than real bitcoin (that's the forcing function I'm saying we need to build).

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Compare utxo to their own books? What are you talking about?

You don't own a utxo unless you hold keys. Just like you don't own a dollar unless you own coin or cash.

Compare a custodian's utxo set to the custodian's liabilities.

I understand what you're saying, bitcoin is obviously much easier to audit, I just can't see any reason why sufficient numbers of people will ever care.

I agree.

I also fail to understand why I should care? If they want to invest their fiat into bitcoin, then never actually withdraw it, so?

Stupid? Yes.

Pointless? Yes.

My issue? No.