The Possible Future Arc of Crypto Self Custody

Following the recent comments by Michael Saylor and subsequent backlash, I would like to offer the following possible arc for self custody in the future.

It is only my opinion, and it is conjecture, but I suggest it is no more/less likely than the spectrum-ends of the current debate.

The majority of people are technologically illiterate and blindly trust their hardware, OS and app provider.

And it is a little probable, either by design or random bug, that a major self custody loss will occur at some point in the future.  The result will be a financial loss of billions which will critically harm the reputation of self custody.  

Such an event is a little probable, not certain, but not zero chance.

The result is likely be that crypto holders will prefer to use intermediaries*, and/or governments to mandate custody by licensed intermediaries**.

*We saw such an effect when FTX (a CEX) collapsed, which led to a DECREASE in self custody, in favour of larger, “too big to fail”, intermediaries.
**I am not saying “banks/brokers” or “custodians” or “exchanges”, just - intermediaries.

So far, so bad for the blockchain libertarians.  So far so good for tradFi status quo.

But there is hope!

Once this happens, it is very likely that some smart disrupter intermediary will figure out how to get paid for providing a trusted, functionally easy UX PLUS guaranteeing network security… without controlling your wallet <- they will get paid for the function of an intermeidary without rent seeking off your assets themselves

Thus the arc of self custody will land into, what we all hope is a more decentralised, less rent seeking, more empowered, but still secure crypto future.