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223 sats \ 2 replies \ @TheBTCManual 29 Feb \ on: Fred Kreuger's Bitcoin Perspective bitcoin
I've listened to 1 pod of him and a few clips, I think he discounts the ability to rug a custodian, the temptation to do it, and the adversarial climate that will surround something like a big ass concentration of Bitcoin in one place
Wall Street and tradFI will experience their rugging event, of that I am sure, no time frame on it but I can't see how a large concentration of pooled bitcoin doesn't get rugged, all you need is one disgruntled employee, one slip-up, one mistaken download of software and it can all go tits up.
Especially since all the funds are not cold, some have to be hot and interaction between hot and cold only open up risk, if exchanges can't safely hold on to Bitcoin, why would a product built on exchanges be able to do it?
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Always a possibility, can't rule it out, I am no expert in their custody practices or how they integrate and consolidate their various verticles, IE spot trading, ETF custody, OTC desk, institutional custody, derivatives trading nor how they rebalance it but I would assume they have to do it every day at least, money moves in and out so there has to be funds hot at all times to service that demand
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