Good points, although you may be holding custodial bitcoin for the sake of using it and not as savings. 

Undisciplined

begs the question of why so many people would believe in bitcoin as an investment while being scared of it as a product.

As I see it, this is the same question as why so many people buy bitcoin but don't hold their own keys. Every value proposition of bitcoin is downstream of holding your keys. I would go so far as to say that bitcoin is worthless unless you hold the keys to it (really just a reformulation of not your keys, not your coins). Yet, many people seem willing to buy the thing without holding the thing.

perhaps it's the same reason people throw money at Tesla or NVidia: they don't actually care what it does except that it goes up.

econ

Paper Bitcoin Summer - Economic Forces

Scoresby

> begs the question of why so many people would believe in bitcoin as an investment while being scared of it as a product.

As I see it, this is the same question as why so many people buy bitcoin but don't hold their own keys. Every value proposition of bitcoin is downstream of holding your keys. I would go so far as to say that bitcoin is worthless unless you hold the keys to it (really just a reformulation of not your keys, not your coins). Yet, many people seem willing to buy the thing without holding the thing. 

perhaps it's the same reason people throw money at Tesla or NVidia: they don't actually care what it does except that it goes up. 