The Bitcoin Custodial scenario mirrors the gold and fiat pairing we see today—an illusion of value backed by something inaccessible to most. If 80% or more of Bitcoin ends up locked away on the ledger, sitting idle while people spend some proxy token freely, it becomes clear we’ve simply re-skinned the same centralized system with a shiny Bitcoin facade.
The real value—Bitcoin, the hard asset—is hoarded by a select few holding the keys, while the masses are left transacting with derivatives that can be inflated, manipulated, or devalued at will. It’s déjà vu: gold locked in vaults while fiat flows through the economy, losing purchasing power daily. We already know how that story ends—corruption, inequality, and control.
This is why self-custody and decentralized principles are so critical. If Bitcoin becomes centralized through custodial services or replaced by spendable proxies, its promise as a tool for sovereignty and freedom is undermined. The few holding the keys will once again wield power over the many, and the cycle repeats.
Farley
npub1fa…x670r
2025-01-28 18:27:09
Author Public Key
npub1farleyjgt90e2sr8nlneuwg7vcx0yjq3uc3ksya7902eteulzfkqyx670rPublished at
2025-01-28 18:27:09Event JSON
{
"id": "ed502a020dcefcd9a240eeaf81203c7d4829dc582d84f3926c027e097c537eef",
"pubkey": "4f47fc9248595f9540679fe79e391e660cf24811e6236813be2bd595e79f126c",
"created_at": 1738088829,
"kind": 1,
"tags": [
[
"client",
"noStrudel",
"31990:266815e0c9210dfa324c6cba3573b14bee49da4209a9456f9484e5106cd408a5:1686066542546"
]
],
"content": "The Bitcoin Custodial scenario mirrors the gold and fiat pairing we see today—an illusion of value backed by something inaccessible to most. If 80% or more of Bitcoin ends up locked away on the ledger, sitting idle while people spend some proxy token freely, it becomes clear we’ve simply re-skinned the same centralized system with a shiny Bitcoin facade.\n\nThe real value—Bitcoin, the hard asset—is hoarded by a select few holding the keys, while the masses are left transacting with derivatives that can be inflated, manipulated, or devalued at will. It’s déjà vu: gold locked in vaults while fiat flows through the economy, losing purchasing power daily. We already know how that story ends—corruption, inequality, and control.\n\nThis is why self-custody and decentralized principles are so critical. If Bitcoin becomes centralized through custodial services or replaced by spendable proxies, its promise as a tool for sovereignty and freedom is undermined. The few holding the keys will once again wield power over the many, and the cycle repeats.",
"sig": "ff941b2c3bd173c6c2af77e892fcc5f0949b1420d774a2de4cac0ef53b4cfae02dd4b39d188cad97f985b928aa1d9bed252de3441cfed2cfd3f4a9c71a1c3ad8"
}