Home invasion robbery happens every day in the U.S. The fact that one was robbed at home for bitcoin is not a function of self-custody. It is a function of other security failures. Hell, your more likely to be robbed at home by someone who got your information through KYC information loss through an exchange getting hacked.
Fair point, but most people don't store their lifesavings at home though. So self-custody increases the harm of home invasion. Draconian KYC laws are a separate issue. You can still have someone custody something for you without them knowing all of your personal info. Many non-KYC custodians might be more secure than having all of your eggs in one basket, so-to-speak.
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