Not the custodians are the big issue. The people that are going back to fiat, the involution of bitcoiners

[![bitcoiners-involution.jpg](https://i.postimg.cc/hjhD7XxP/bitcoiners-involution.jpg)](https://postimg.cc/HcDDqsBf)

I agree, that's why I said "a few big cuatodians"

The notion of custodian is not broken. but if too centralized then it is broken. 

family or local business level seems decentralized enough but maybe that"s not realistic. 

is there a middle ground?

standardcrypto

The existence of custodians is not the real big problem for Bitcoin.

Dumb people, keeping all their stash in somebody else custody is the problem.

Using a small amount (insignificant) of sats with a custodian is ok. Sometimes you use it as a decoy or just to swap between LN and onchain.

The real issue come when dumb people use these custodians for everything the have.

I could easily be a custodian for my family friends and near by merchants. Is it that so bad? No ! Not at all, I am just acting as a LN bank. Important is to be a good and fair custodian and do not rug pull your users.

bitcoin

People trusting a few big custodians is the biggest obstacle to BTC Payments

The existence of custodians is not the real big problem for Bitcoin.
Dumb people, keeping all their stash in somebody else custody is the problem.
Using a small amount (insignificant) of sats with a custodian is ok. Sometimes you use it as a decoy or just to swap between LN and onchain.
The real issue come when dumb people use these custodians for everything the have.

I could easily be a custodian for my family friends and near by merchants. Is it that so bad? No ! Not at all, I am just acting as a LN bank. Important is to be a good and fair custodian and do not rug pull your users.