German Banks Getting Ready To Steal Bitcoin
(Edited)
This week it was announced that a new German law would allow the banks to hold Bitcoin on behalf of the German citizens.
What will be the outcome of them servicing as a custodial agent?
They are banks, what do we think will happen? That said, there are some positives.
▶️ 3Speak
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They’re not getting into this to steal their customers’ crypto. And this is great news for adoption. Some banks may even try to sell cryptos to their customers.
Ditto
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It is not good decision.people need freedom.
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After banks onboard enough people into bitcoin through their custody accounts, they'll quietly write legislation requiring banks to hold your keys then make it impossible to withdraw into your own hardware wallets. After that they'll subject you to fees that you cannot escape. The only thing left on our side at that point is that they can't print up more bitcoin, but they will probably have gained one thing that they wanted by then which is the elimination of cash.
The lack of fungibility in bitcoin is becoming worrying. Capital controls and the seizing of the means of production by entities like Amazon will likely mean that western nations and China will be living in a digital panopticon. Those of us who know better will have left for the 3rd world which will become the next USA and the digital panopticon countries will have to learn the hard lesson of socialism once again while watching the rest of us prosper.
Hopefully I'm wrong about this and people will refuse to accept this. But from what I'm seeing, far too many people are still completely clueless about why bitcoin was invented. If we're to reach the future that Tim Draper speaks of, we'll have to do a much better job educating people on "not your keys, not your crypto".
It negates the principle of decentralization if it's held in a central repository. It's a great step backwards.
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Short Summary:
In this episode, the discussion revolves around a significant development in Germany where a law is proposed to allow German banks to hold Bitcoin as custodians. This move could facilitate Bitcoin purchases and alleviate concerns related to wallet security. However, concerns are raised about the potential for banks to impose fees or find ways to "steal" Bitcoin through various banking mechanisms, comparing this to negative ⇪ rates× already impacting consumers. Despite these concerns, the possibility of banks facilitating wider Bitcoin adoption is acknowledged as potentially beneficial for increasing public exposure to cryptocurrencies. The episode emphasizes the importance of personal responsibility in managing cryptocurrency assets, warning against relying on centralized entities for security.
Detailed Analysis:
The episode opens with a discussion about an announcement concerning German banks potentially being allowed to become custodians of Bitcoin. This development is seen as a double-edged sword. On one hand, it could significantly ease the process for individuals wanting to invest in Bitcoin, eliminating the hurdles associated with managing wallets and keys. On the other hand, there is skepticism regarding banks' handling of Bitcoin, drawing parallels to traditional banking practices that are often criticized for being exploitative, such as imposing negative interest rates on consumers and various fees.
The speaker expresses concern that banks might apply similar practices to Bitcoin, potentially eroding the value of individuals' cryptocurrency holdings through fees and other charges. The episode draws attention to the fundamental principle of cryptocurrency ownership - that control over the private keys equals control over the assets - suggesting that holding Bitcoin through banks could undermine this principle.
Despite these reservations, the potential for this development to drive Bitcoin and cryptocurrency adoption is acknowledged. The ease of access through banks could attract many new users to the space, expanding the user base and potentially stabilizing the market. However, the speaker remains cautious, warning that those who choose to hold their Bitcoin in banks risk losing control over their assets.
Furthermore, the episode discusses the broader implications of banks entering the cryptocurrency space. It speculates that banks are interested in Bitcoin not just as custodians but also as investors looking to bolster their assets due to Bitcoin's scarcity and potential value growth. This move by banks is seen as a way to secure a stake in the cryptocurrency without directly purchasing it, which could have significant implications for the market and individual ownership.
The conversation shifts to the importance of personal responsibility in managing cryptocurrencies. The speaker highlights the risks associated with centralized exchanges, noting recent hacks and the inherent vulnerabilities of these platforms. The episode emphasizes that individuals must take proactive steps to secure their assets, as relying on third parties can lead to loss and disappointment.
In conclusion, the episode paints a complex picture of the future of Bitcoin and banking. While acknowledging the potential benefits of increased accessibility and adoption, it warns of the risks associated with ceding control to traditional financial institutions. The overarching message is one of caution and empowerment: individuals should educate themselves, take personal responsibility for their assets, and remain skeptical of centralized entities' promises in the cryptocurrency space.