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101 sats \ 1 reply \ @SirGalahodl 12 May 2023 \ on: The Bullish Case for Bitcoin Custodians bitcoin
Is this the only option? I've never advised a newcomer to do this. Newcomers can download any number of excellent self-custodial wallets, including Phoenix, Breez, Samourai, Sparrow, and many others, and get started in just a few minutes without a trusted third party.
Good gracious me oh no write down 12 words! It sounds like you want your cake and eat it too. The whole point of Bitcoin is to NOT be like your bank who is a custodian.
Anyway a lot of wallets (like Breez) allow you to start receiving funds right away and will remind you later to write down your words.
Your article reads like you are projecting your experience on the incoming bitcoiner: you must spend three-digit number of hours studying bitcoin before you are qualified to self-custody. This is emphatically not the case, and there are so many good tools now that it's not even necessary.
I'm projecting not only my own experience, but yes, especially my own experience. When I first started using Bitcoin in 2015, I had no idea whatsoever about it. I had no idea about money or bitcoin. I needed to make digital payments and it just worked, so I looked into it further and learned. But I only looked into it, because it was useful to me. Utility of bitcoin was the trigger for wanting to learn more for me. Without that trigger, why would anybody bother looking into something like learning self-custody? So there must be interest.
Remember that only 68% of US Americans have disposable income and money to save. They are living paycheck to paycheck, and that number is higher in other countries. This means that majority of people will not consider bitcoin as a tool for savings because they have no money to save. With no money to save, how can anybody have or develop the motivation to secure (nonexistent) money properly?
The only way bitcoin can be useful to most of these people is for borderless low fee payments. This is financial inclusion and that's what people care about. With custodial Lightning it is instantly available for anyone. Just download an app. It's the quickest and lowest cost way to have financial inclusion. Then bitcoin is useful for these people, and they will care, listen, develop interest and become open to learn more about it. Any education attempt without intrinsic motivation will be shortlived and can backfire. Self-custody is risky, too, it's just different form custodial risk. Developing the confidence to do it without anxiety takes some time. It's not a matter of tools, you see.
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