Urbandreamer wrote:There was a recent post on the crypto board about self-custody.
I had just finished writing a response explaining that while I personally like self-custody, many here value holding the likes of their ISA shares with a nominee. I.E with a custodian.
The post was gone before I could respond. I'm curious as to why. I saw nothing actually offensive about questioning why people might think that it was difficult to hold your own bitcoin.
Was there a complaint and what was the nature of the complaint?
Was it a perceived aggression on the part of the person posting?
Were they a new poster, we have had a lot that do seem to be "less than honest" recently.
Don't many have their crypto stolen when left online (custodian). Offline storage serves as a barrier against lucky random guessing of digital keys. Whilst there might be zillions of key combinations when there are billions of accounts, computer systems running at billions of tries/second sometimes get lucky (that luck might bring just a small win (account value), but could also be a big win (someone with a large value of crypto)).
With conventional banking the ledgers are physically/digitally secured. With crypto the ledger is open to anyone, but encrypted.
Another factor with crypto is that its considered a non legal tender currency and as such all transactions are liable to capital gains tax, whether that's swapping one crypto for another, being spent, being transferred to another etc. If as I have you ever get investigated by HMRC that likely would be a nightmare, where down to every penny is deeply analysed - with the investigators under pressure to find fault, triggering a successful passed to Court/prosecution 'bonus' (in my case no fault was found but boy did they try - several months of letters often being received a week or so after the letter date, demanding a reply within two weeks of the letter date and involving the return of details that often were not easily/quickly to hand). Seems in general that penalties are increasingly being used as a revenue stream whether that's via financials or driving etc.