By lutch 
In an insightful piece by Cointelegraph, Trezor, a leading provider of hardware wallets, emphasizes the importance of Bitcoin Self-Custody to shield investors from the risks associated with institutional control over cryptocurrencies. The firm underscores that while institutional adoption has contributed significantly to Bitcoin’s mainstream recognition and price appreciation, it also introduces centralization risks.
Lucien Bourdon, a Bitcoin analyst at Trezor, explains that the involvement of large institutions in Bitcoin holding can lead to centralization, where single entities possess vast amounts of the cryptocurrency. This scenario increases the risk of price volatility and negative sentiment if these institutions face financial difficulties or collapse. Bourdon advocates for Bitcoin Self-Custody, stating it’s a long-term strategy to insulate oneself from such centralized vulnerabilities. By holding their own keys, Bitcoin holders maintain control and security over their assets regardless of external institutional failures.
Trezor’s stance is clear: while owning shares in companies like MicroStrategy or investing in Bitcoin ETFs might seem like an entry point into Bitcoin investment, it’s not equivalent to holding actual Bitcoin in self-custody. Bourdon warns, “If these institutions encounter problems, investors relying on them may face losses without the protections self-custody provides.”
The narrative around Bitcoin Self-Custody is further supported by the fact that, despite institutional and governmental accumulation, individual investors still hold the majority of Bitcoin’s supply, as per a 2024 CoinGecko report. This distribution emphasizes Bitcoin’s decentralized nature and the ethos of personal financial sovereignty.
However, the move to self-custody isn’t without its challenges. The primary responsibility falls on the individual to secure their private keys; a lost or stolen key means lost Bitcoin, with no recourse for recovery. Despite this, the trend towards self-custody is growing, with Trezor and other wallet providers like Trust Wallet reporting increased demand, particularly as Bitcoin’s price hits record highs. https://x.com/Lutcheann