"When someone holds your funds, these days everyone recognizes the inherent risk: The custodian might misuse the money or fail to safeguard it properly, since it isn't theirs. But here's the flip side: Delaying a payment carries just as much danger. When payments stall, the economy slows, productivity dips and the benefits for everyone diminish. It's like plaque building up in arteries: You can still function,"
"but friction drags down the entire system. If the arteries clog so much that blood can't flow, the patient dies. The same applies to today's banking system. The instant a bank halts all payments, it's a flatline on the heart monitor. Unless they jolt the system with a financial defibrillator to unclog those monetary arteries, that bank - even if it holds funds - will collapse fast."
"Centralization isn't just a banking problem - it's baked into how Bitcoin's own advocates operate, and I've got a beef with that. Most Bitcoin podcasts aim to orange-pill listeners and are pure gold (that term will lose its value on a bitcoin standard) for anyone seeking the signal - I wouldn't be here without them. Yet, they preach theory on fiat platforms where you're dodging ad interruptions that worsen as the platforms grow, mimicking the social media they critique: You're the product, advertisers the clients,"
Custodial control of funds creates misuse and safekeeping risks because held assets do not belong to the custodian. Payment delays produce significant systemic harm by slowing economic activity, reducing productivity, and diminishing shared benefits. Friction from stalled payments resembles arterial plaque that impedes flow, and a complete stoppage can kill the system. A bank that halts payments effectively flatlines and will collapse without rapid measures to restore monetary flow. Centralization infects Bitcoin advocacy through reliance on ad-driven fiat platforms, and sponsorship exclusivity further constrains market choice. Decentralized tools like Nostr and Lightning remain underutilized until platform failures force migration.
Read at Bitcoin Magazine
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