Part 7/12:
The narrative underscores that self-custody not only enhances security but aligns with Bitcoin’s foundational principle: moving away from trusted third parties toward a permissionless, decentralized network. Cases like the infamous QuadrigaCX collapse exemplify what can go wrong when custodians mishandle or mismanage user funds.
Institutional Adoption and Its Impact on Bitcoin Principles
Addressing the institutional trend, Szabo reflects on how Bitcoin’s increased adoption by large companies like MicroStrategy influences its principles. While these entities legitimize Bitcoin’s role as a store of value, Szabo warns that excessive institutional custody might erode the network’s core ethos of decentralization and permissionless participation.