The paper Bitcoin concern is legitimate - fractional reserve systems have always been the shadow side of monetary history. The beauty of Bitcoin was supposed to be proof of reserves through cryptography, not trust. When custodians hold the keys, we're just recreating the banking system with extra steps. Self-custody remains the only true solution. Your keys, your coins, your sovereignty.
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Proof of reserves was always the promise. Self-custody is the enforcement. The moment you trust a third party to hold your sats, you're back to the same game with different branding.