Bitcoin (CRYPTO: BTC) on-chain analyst Willy Woo on Tuesday called the “Be your own bank” slogan misleading by contrasting traditional banking with cryptocurrency self-custody.
Banks Vs. Self Custody
Woo said on X that bank deposits transfer “legal title” to the institution. The money merges into the bank’s asset pool, and the bank has the right to use it as it sees fit.
“What you get is a claim on a debt that the bank owes you… assuming it remains solvent,” Woo added.
They contrasted it with self-custody, where ownership is direct and unconditional, and no intermediaries sit between a person and their Bitcoin.
Self-Custody Unlocks Bitcoin’s Real Properties?
Woo has maintained that “only learning the ropes” of self-custody could deliver Bitcoin’s uniquely sovereign advantage to individuals.
“Institutions that hold your assets will collapse, governments have and will seize your assets, your family may need to relocate under the chaos,” he said last month.
Woo, however, acknowledged the benefits of exchange-traded funds and other custodial solutions such as centralized exchanges, noting that they have been "recognised and integrated onto TradFi rails."
Which is the Safer Bet?
It’s important to understand that while self-custody removes counterparty risk, it does not make Bitcoin risk-free.
In August, hackers drained at least 1,700 BTC, worth $42 million at current prices, from addresses generated by vulnerable Coldcard hardware wallets, according to Galaxy Research. Later in the month, SafePal confirmed a security breach involving unauthorized access to data for about 40,000 customers.
River’s 2025 Bitcoin Custody report data estimated that 1.57 million BTC were permanently lost through self-custody compared with 1.51 million BTC lost on exchanges via hacks and insolvencies.
Price Action: As of this writing, BTC is down 1.4% in the last 24 hours to $84,031, according to Benzinga Pro.
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