I seriously ask myself what advantage do custodial *third party hosted" lightning wallets offer over bank accounts?
Its a serious question, i would appreciate if you could help me answer it.
Custodial wallets:
- its not your keys, so its not your coins
- how can you prove that the wallet provider doesnt display more sats in the wallets than it actually has?
- it offers no privacy as the wallet provider sees all transactions
- only few merchants accept lightning, credit/debit cards are used everywhere
- with a xapo card i even get 1% cashback in sats
- you can load your card with btc / usdt on xapo
- you have a 100k deposit insurance, a lightning provider has none
- with lightning i have to pay the fee additionally to the price. the credit card fees are priced in and the merchant pays them
- i can withdraw btc to cold storage from xapo like i can from a lightning wallet
- if the feds want to seize your sats, they can take them from the wallet provider
- blink had the feds ask for transaction details in .sv already, Nicolas confirmed that
I am not trolling, i am just not getting what advantages lightning offers with custodial wallets?
maybe i am too stupid, so please help me out and let me know what advantages you see with custodial wallets?
Thank you.