Custodial wallets are just payment apps using the lightning protocol to transfer value.
It's built on bitcoin & denominated in bitcoin but it's not Bitcoin.
Normies don't care & they shouldn't have to.
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That easy first time user experience is important to hook them. It’s takes away that overwhelming mountain of things that need to be learnt before they start using it and can grow from there. But it is important to help them grow from there.