Oddbean new post about login | logout I was having this conversation with @corndalorian yesterday in response to this meme: @note1j37gsx0prh0jru4tq9gy02h8nmqmkrngs70p3z4wdgu8z8gq0vqqtzhdx6 There's a false sense of security when you have your wealth locked up in the bank. It feels good and it shouldn't. There's also anxiety that comes with holding your keys. It doesn't always feel good. But it should.
I feel the exact opposite 😂
I'm in that second group today. Mostly because I still have a lot of work to do educating my wife and solidifying an inheritance plan for my kids. I think that's one of the biggest challenges when getting rid of a trusted third party.
The way I look at it is that a custodian is guaranteed to rug or be 6102d before your death. Basically a 0% chance to pass on your wealth with a custodian. So even with an imperfect setup you at least have a non-zero chance of passing on your wealth with self-custody.
You know with certainty when you’re going to die?
No, but I am more comfortable with my setup now than trusting a custodian to pass on my wealth. Worst case with custodian the coins go to an oppressive govt. Worst case with self-custody the coins are lost and donated to all Bitcoiners.
Fair enough. Worst case scenarios are good to account for, but there are many possible outcomes in between those extremes. Understanding the risks inherent in your setup is crucial for anyone. There are many factors to consider in each person’s individual situation. At the end of the day though, he who holds the keys controls the coins. So self custody is the gold (orange?) standard. 😂
Yea I don't disagree with you. The point is that bitcoin isn't a risk free asset. Holding your own keys should always give you a tinge of anxiety, or at the very least awareness of potential threats. Similar to carrying a firearm.
For sure, it is something I think about daily.
I've always been blocked and abused by the legacy financial system, I had anxiety anytime I opened my banking app, so much so I would only do it once a month. I had anxiety at first when using a hardware wallet because it was new, but now I feel better than ever being free from the abuse of the bank and credit system. Even if bitcoin never went up in value I would be eternally grateful for that ability alone.