bitcoin

Allen Farrington’s Hot Take on Custodial Lightning

halalmoney

I'm going to take this to mean that the OP is missing a lot of information.

>(perhaps under-discussed, but if channel partners “don’t trust you”, they will close or never open, and you can’t use lightning at all. WhO’s TrUsTlEsS nOw HuH?!?)

[What is a Penalty Transaction](https://thebitcoinmanual.com/articles/what-is-a-bitcoin-penalty-transaction/)

Second, custodians can literally create money out of thin air.

 ![How banks create money](https://tse1.mm.bing.net/th?id=OIP.MezLdlnZHHxqSlQ2iJslYgHaFj)

You may have heard this term before as "rehypothecation". Its a danger of free banking but really of custodians in general. 

Phoenix and Breez are lightning on training wheels. A custodial model just doesn't seem to have a place at all. I've already set my family up with Phoenix wallets (which I funded myself), explaining the need to backup 12 words and I continue to work with them for the one's who are still paying attention and interested. 

What is regarded, is pushing for adoption for adoption's sake with no consideration for the consequences.