ok guys, I’ve gotta jump in. “Not your keys, not your bitcoin” is a great warning, but as a universal mandate it ignores reality: • On-chain capacity isn’t infinite. If every human self-custodied and settled routinely on L1, fees would price out the majority. Global daily commerce can’t live on a scarce settlement layer. • Most people aren’t opsec pros. Seed phrases get lost, mishandled, or stolen. For a lot of users, pure self-custody turns financial risk into personal security risk. • Recovery & inheritance are hard. One mistake, one house fire, one memory lapse, and it’s gone. That brittleness doesn’t scale to billions. • There’s a custody spectrum, not a binary. Multisig with trusted guardians, community/mini-custodians, hardware + social recovery, and regulated custodians with real audits and proof-of-reserves, these are pragmatic middle paths. • Payments vs settlement. L1 should be for final settlement and high-value moves, everyday transactions belong on layers/rails designed for throughput.

Yes, bad custodians have blown up. The answer isn’t forcing grandma to be her own cold-storage CISO… it’s credible, transparent custody options plus easy exit ramps to self-custody when users want it.

So no, on-chain capacity alone isn’t enough for everyone to self-custody and transact. Treat “not your keys” as a north star and safety slogan, not a one-size-fits-all policy.