CoinDesk Podcast Network BITCOIN SEASON 2: Bitcoin Needs Self Custody To Survive
Jul 30, 2025
Nick Neuman, CEO and co-founder of Casa, champions the cause of Bitcoin self-custody as essential for its survival. He discusses the looming threat of a mining death spiral without user engagement and transaction fees. Neuman emphasizes the crucial balance between individual autonomy and key management challenges. He highlights the role of innovative solutions, like Lightning, in enhancing Bitcoin's scalability while advocating for community-driven self-custody practices to secure Bitcoin's future.
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Bitcoin Held At Network Edges
- Bitcoin is designed to be held by individuals at the edges of the network, not centralized exchanges or custodians.
- Holding Bitcoin at the edges increases security by reducing systemic risk and enhances network transaction fees crucial for mining incentives.
Mining Revenue Threatens Bitcoin's Future
- Without sufficient transaction fees, mining may become unprofitable, risking Bitcoin's network security and prompting pressure for economic changes.
- This could lead to contentious debates over raising the supply cap or reallocating coins, threatening Bitcoin's core narrative.
Transaction Growth Ensures Security
- Although Bitcoin’s difficulty adjustment and price increases might balance mining incentives, uncertainty remains.
- Increasing on-chain transactions and fees is a guaranteed path to maintain mining profitability and network security.