Re: Banks are collapsing. Will Bitcoin and other cryptocurrencies rise from here??
Investing in bitcoin does not always mean that people have now moved to the side of decentralization. A great many bitcoin investors store their bitcoins in centralized services or custodial wallets. It's definitely not about decentralization, although their asset allows them to opt out of a third party. So far, centralization has very much dominated the crypto market, and that trend will only intensify over time. It would seem that over time people should learn to understand the full meaning of cryptocurrencies and bitcoin, but something is not going according to plan, and people are choosing convenience over decentralization and self-custody.
Self-custody is the only way to ensure your Bitcoins are safe from harms way. Otherwise, you could lose it all if the exchange, wallet, or service holding your coins goes bankrupt, gets hacked, or seized by the government. It would be no different than trusting banks with your money. While the failure of the current banking system may trigger some people to move their money into Bitcoin, that doesn't mean Fiat will die in the long run. Governments will keep bailing out banks for as long as it takes.
In essence, banks will become bigger and stronger than ever. And you can bet that will be the case with the launch of CBDCs. Who knows how the crypto market will fare in the future? Just my opinion
