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Trust Dilemmas in Custodial Bitcoin Services
Using custodial services for Bitcoin involves relinquishing control, which contrasts with the autonomy provided by mechanisms like lightning channels. This lack of unilateral withdrawal options may pose risks, akin to traditional banking that relies on trust in a brand. The future of Bitcoin banking services, including potential developments like Bitcoin bank as a service applications, will require careful consideration of safety and trustworthiness in service providers.