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0 sats \ 3 replies \ @Scoresby OP 10 Apr freebie \ parent \ on: 47% of Bitcoin hashrate uses same custodian bitcoin
Yeah, it doesn't seem good.
But I don't think people make stupid decisions in general, so I really want to figure out: what is the motivation here?
We all think that centralization is bad and trusting somebody else to hold your keys is bad, but here are people with a ton of skin in the game doing exactly the opposite of what makes sense.
If they lose it themselves, there is no-one to blame. In the age of tort I would imagine you could try to sue the pants off the custodian if they lose it. I haven't seen any custodian contracts but I imagine that is the thinking. There is no one to sue if you lose it yourself
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Right, so they do it out of convenience, and just count on the courts as their insurance. Still, no one makes a decision and thinks this is a stupid decision. so in their minds, it must make sense somehow.
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Considering that miners need to sell/send payouts frequently to keep up with their operating costs and distribute it to the individual miners it probably has a lot to do with convenience. Plus it appears part of the contract give the custodian first dibs on the rare sats as they are skimming them out.
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