Bitcoin self-custody advocate explains why on-ramps are key to adoption

Software developer Jameson Lopp believes improving usability and user experience of Bitcoin ( $77,089.00 ) (BTC) self-custody solutions and making more avenues to acquire BTC will be key in further adoption of the preeminent cryptocurrency.

The co-founder of Casahodl, who’s a prominent figure in the Bitcoin ( $77,089.00 ) and wider cryptocurrency space, spoke of the challenges in building self-custody solutions in an exclusive interview with Cointelegraph journalist Joseph Hall ahead of Miami Bitcoin ( $77,089.00 ) Week.

Related: The Bitcoin ( $77,089.00 ) transition: How hodlers can become changemakers and drive adoption

Lopp has a wealth of experience as a developer building a range of services and products in the cryptocurrency space, but has largely been focused on self-custody of digital assets in recent years. Casahodl offers a range BTC self-custody solutions and is set to provide Ethereum ( $2,409.52 ) support in 2023:

“The default path for most people to get into Bitcoin ( $77,089.00 ) is through centralized exchanges that are surveilling their customers generally because they are legally required to do so.”

Lopp speculated that users typically buy an entry level amount of Bitcoin ( $77,089.00 ) on an exchange and leave their holdings in the respective wallet. He questioned whether some users are even aware that they can actually manage their own BTC holdings in a self-custodial wallet:

“Even those who do understand that self-custody is a thing are afraid to take on the responsibility that is associated with that.”

Nevertheless Lopp added that cryptocurrency custodian service providers like exchanges offer a level of convenience and usability through web applications that is more user-friendly to industry newcomers. There is a relatively low barrier to entry, with the only friction point being AML and KYC requirements that many web users are becoming accustomed to.

“We simultaneously need to make self-custody both easier and make it so that people are comfortable and confident that they can do it without screwing up.”

Lopp added that creating more on-ramps for people to acquire Bitcoin ( $77,089.00 ) and driving economic activity with the cryptocurrency. He used decentralized social media platform Nostr as an example of an ecosystem that has integrated Bitcoin ( $77,089.00 ) layer-2 Lightning protocol as a means to drive the use of BTC:

“People can basically sign up there just by generating a public key and by creating a lightning wallet and they can just start receiving and sending with no AML orKYC required.”

In countries like the United Kingdom, Bitcoin ( $77,089.00 ) proponents and a range of industry-leaders established a policy group to foster education, investment, business and job creation for the ecosystem in April 2023. 

Meanwhile layer-2 infrastructure providers like Lightning have seen organic growth over the last year, with a steady increase in the amount of BTC locked up in Lightning channels.

Magazine: Ordinals turned Bitcoin ( $77,089.00 ) into a worse version of Ethereum ( $2,409.52 ) : Can we fix it?

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