Summary of Reddit Comments on Onchain Custodians

General Sentiments on Exchanges and Custodians

- Exchanges are profit-driven entities and may not always act in the best interest of users.

• Holding cryptocurrency in a personal wallet is seen as a safer option compared to keeping it on exchanges.
• Concerns about risks associated with exchanges, lack of regulation, and potential security vulnerabilities.
• Preference for self-custody solutions like cold storage for increased security.

Onchain Custodian - Brian Armstrong's Post

• Some users question the necessity of Brian Armstrong's post about institutional buys/sells and auditing.
• Lack of enthusiasm for institutional involvement in Bitcoin, preferring minimal Wall Street influence.
• Skepticism towards the need for users to trust centralized parties for the auditing of transactions.
• Concerns about fractional reserve Bitcoin practices and potential risks associated with custodians.

Trust and Verification

• Emphasis on the crypto community's ethos of "don't trust, verify" being at odds with the idea of trusting audits.
• Criticism of Deloitte audits being seen as a guarantee of trustworthiness, citing past scandals involving the company.
• Recommendations to opt for self-custody wallets for better control and security of Bitcoin holdings.

Institutional Adoption and Centralized Bitcoin

• Comments on the need for institutional adoption and the shift towards centralized Bitcoin ownership.
• Discussion on the scalability challenges and the potential benefits of centralized custodians for broader Bitcoin exposure.
• Criticism of the terminology used by custodians like "mints" and "burns" as not aligning with Bitcoin's principles.

Conclusion and Recommendations

• Overall, there is skepticism and criticism towards onchain custodians like Coinbase and Brian Armstrong.
• Strong emphasis on self-custody solutions, cold storage, and maintaining control over personal Bitcoin holdings.

For more background information, users can refer to the additional information provided here.