techfeudalist on Nostr: Yes, it has privacy benefits but many view it as a potential scaling solution for ...

Yes, it has privacy benefits but many view it as a potential scaling solution for bitcoin. Let’s face it. Most people will never be able to afford to have their own UTXO and self custodial Lightning will be similarly out of reach for plebs and day-to-day transactions. We’re moving quickly into a world where only whales, institutions, and custodians will interact with the base chain. Unfortunately, this means that most people will use a custodian.

If that’s true, then the best custodian will be either someone you personally know (uncle Jim) or a geographically distributed group of custodians hopefully out of reach of any one country. For instance, maybe a federation based in or including friendly countries like El Salvador, etc. Ecash seems useful to me in those scenarios.