Bitcoin self-custody shields users from institutional risks — Trezor
By holding their own keys, Bitcoiners can hedge against centralization risks while reaping the benefits of Bitcoin adoption, Trezor’s Lucien Bourdon said.
Hardware wallet provider Trezor has highlighted the importance of self-custody in safeguarding Bitcoin holders against potential failures of centralized institutions as institutional adoption of the cryptocurrency continues to grow.
Institutional adoption is a great contributor to mainstream recognition of Bitcoin (BTC) and price appreciation, but it still introduces certain risks, Trezor’s Bitcoin analyst Lucien Bourdon told Cointelegraph.
“Institutional involvement introduces centralization, with single entities holding large amounts of Bitcoin,” Bourdon said, adding that institutional adoption is associated with risks like volatility and negative sentiment if institutional investors face significant issues or even collapse.
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Author: Helen Partz
