Judging The Merits Of Cryptocurrency Custodial Services And Owning Your Bitcoin Private Keys
Are Crypto Custodial Services Similar To Institutional Robbery?
A popular bitcoin advocate and author of Mastering Bitcoin, Andreas Antonopoulos, has shared his thoughts on whether cryptocurrency and bitcoin banks are a robbery tool designed to negatively impact bitcoin’s value and price.
He made this known in a recent interview on YouTube that Bitcoin is really underestimated as it can be easily stolen through inflation.
This interview came after it was mentioned that the custodial wallet for Bitcoin is capable of preventing government from stealing from their subject through inflation, with the false intent of fighting insurgency and corruption. He believes this to be untrue, as it could even be an easier for the government to crackdown on the crypto, in a legalized version of modern day robbery:
“One way to do that is just to go in and seize all of that Bitcoin directly from the custodial accounts, which will start happening in different countries, right. So again, depending on how you look at it in modern societies, bank robberies nowadays happen in a very different way than they used to.”
The Bitcoin promoter also took to his Twitter handle to address the issue and it attracted several reactions and comments from his followers. One of the commenters stated that
‘‘There exists two kind of crypto banks, one which completely ignore the hard fiat money and then there are other banks like #cashaa which will go hand in hand with fiat and at the same time harness the Cryptocurrency in the background.’’
Another commenter maintained that,
“Bitcoin's major flaw becomes its transparency. It encourages stalkers and criminals to collude and track down those with wealth. You can't hide it; you can't stop it. You are no longer required to rob a highly secured bank. Fix this, and the world may follow.”
Antonopoulos went further to explain that one of the most strategic ways this is being carried out is by directly seizing protective accounts of Bitcoin users and it goes on across several countries. According to him, robbing a bank can happen in so many ways, depending on how anyone sees it.
To add to his claim, people who are actively involved in bank robberies are holders of bank licenses who always decriminalize the act in order to go scot free and they do not consider it to be a crime at all. This, according to him is a better strategy to steal from a bank, rather than making use of guns and other weapons.
As a top official in the banking sector who may even have what is more than a banking license, stealing from a bank would be easy because a government institution or a political body can aid the operation to rob a whole country.
“Being a regulator in the banking industry, even better than having a banking license. If you want to rob a bank, being a central banker, say the European Union, allows you to rob an entire country. Like what happened to Greece and Cyprus and again far far better than using a gun because you just take 10 million people hostage.”
“When you have institutional custodial systems, like that the people who can rob them, are the people who have authority over them and they don’t need inflation to do that.”
Antonopoulos who is also the author of Mastering Bitcoin tried to explain the risks in Bitcoin custodial system which mainly emphasizes on centralization of power. He maintained that the would certainly be “universal’’ in nature.
He went further to reiterate to his earlier explanation that when there is a regulatory institution who still has the power to steal from the people, it happens even without creating an inflation.