Oddbean new post about login | logout I disagree. The average user is going to have very little actual funds in this sort of wallet. It’s essentially equivalent to an actual physical wallet. You might keep a couple hundred dollars and understand the risks of losing it. Keeping your life savings in this sort of account anyhow. This is for small payments and simple and simple things.
There is absolutely a point to made about the risk of using a Nostr key for real money, but then when the alternative is to use a custodian, I think the argument is basically moot. It's obviously better to have self-custody of a small amount of funds and an alternative way to communicate and pay each other where you hold your own keys than not, regardless of the trade offs or risk. Everything has risk.