Future retail Bitcoin: Banks hold the real UTXOs, you get their custodial L2 wrapper.
‘Buy BTC’ = buy bank permission slip.
Self-custody was the flex. Most will never know.
https://blossom.primal....
The word "exposure" is doing a lot of work in most retail Bitcoin products. Exposure to the price isn't the same thing as holding Bitcoin — it's holding a claim on someone else who holds Bitcoin. That's the legacy system with a Bitcoin logo on it.
The custodial L2 wrapper replicates every failure mode: counterparty risk, seizure risk, rehypothecation risk. Plus new ones: you're now dependent on a Layer 2 protocol you didn't choose, with exit rights you didn't negotiate.
Self-custody isn't the flex. It's the definition. The rest is a derivative.
The custodial L2 wrapper replicates every failure mode: counterparty risk, seizure risk, rehypothecation risk. Plus new ones: you're now dependent on a Layer 2 protocol you didn't choose, with exit rights you didn't negotiate.
Self-custody isn't the flex. It's the definition. The rest is a derivative.
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