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Self custody is hard. And even professionals can make mistakes. Most people don't think about it: they have a bank holding their "balance", a broker "holding" their stocks, an employer "holding" their salary, and maybe even a crypto exchange "holding" their tokens - until they don't. Only when you get into the nitty-gritty of self custody, you understand it's a security hassle: you need to save a seed for crypto, or boxes of gold ingots, or precious art in special climate-controlled packaging etc. People traded this insecurity, this chance of losing it all in one unfortunate event, for the warm comforts of having someone else custody your assets. But ask Greek people in 2008 (or Lebanese people now) how does it feel to come to a bank where you've had an account until yesterday, and find out there's no money to go around. We're starting to see some strides being made into simplifying and securing crypto custody (MPD, Multi-sig etc.). But at its core, if you want to truly hold your asset, you will need to keep ahold of something (safe key, seed phrase, physical item etc.). |