On September 23, in a new episode of the YouTube series “Crypto Tips”, co-host Toby discussed what he considers to be the “real threat to Bitcoin”—and it’s not what many might expect. While much of the conversation around Bitcoin tends to focus on regulations, potential bans, or government crackdowns, Toby emphasized that these are not the primary threats to the cryptocurrency. Instead, he warned that the biggest danger lies in the increasing involvement of traditional banks in Bitcoin custody.
Toby began by referencing a tweet from Michael Saylor, who shared that there were credible rumors of major U.S. banks entering the Bitcoin custody space. This development was underscored by BNY Mellon, which was recently granted approval by the SEC to offer Bitcoin custody services to institutions. According to Toby, this is just the beginning, with more banks expected to follow suit, first catering to institutional clients and eventually expanding to everyday retail users.
Toby highlighted that while many might see this as a step forward for mainstream Bitcoin adoption, it poses a subtle and serious risk. He explained that the true danger is not the potential for Bitcoin bans, but rather the attempt by big banks to convince people that they are incapable of handling their own Bitcoin in self-custody. Toby argued that banks will make it incredibly convenient for people to store their Bitcoin with them while simultaneously discouraging self-custody, which is one of the foundational principles of Bitcoin. He likened this to a manipulation, suggesting that these same banks were responsible for past financial crises, such as the 2008 financial meltdown.
Reflecting on the broader context, Toby drew parallels between the current situation and the message embedded in Satoshi Nakamoto’s Genesis block, which contained a reference to the bailouts of banks by governments. In his view, the irony lies in the fact that these very same banks—whose failures were part of the reason Bitcoin was created—are now becoming the custodians of people’s Bitcoin. Toby expressed his concerns that the average person might be too easily swayed by the convenience offered by banks, ultimately losing control over their assets.
Toby pointed out that this issue has been a recurring topic of discussion on the Crypto Tips channel, where both he and his co-host, Heidi, have warned about the eventual bifurcation of the crypto community. In his opinion, there will be a split between those who embrace decentralized finance (DeFi) and self-custody and those who choose the path of centralized financial services offered by traditional banks. He also shared that this conversation came up during his visit to the Bitcoin Conference in Amsterdam the previous year, where he had expressed these concerns to the team at Trezor, a popular hardware wallet company. At the time, Toby predicted that most people would opt for the centralized route, preferring the ease and familiarity of traditional banking institutions over the complexities of managing their wallets.
Moving on, Toby discussed central banks’ growing interest in gold. He pointed out that central banks had reportedly purchased 483 tons of gold in the first half of 2024, setting a record. However, Toby was skeptical about the accuracy of these reports, calling the figures “a lie” and expressing doubts about the actual amount of gold being bought. He suggested that while the price of gold was hitting all-time highs—reaching $2,600—the real story wasn’t in gold. According to Toby, Bitcoin is the asset that people should be paying attention to, particularly as its price is also on the rise.
Toby closed by discussing the future of Bitcoin’s market cycle, referring to a tweet by Tony The Bull, which suggested that Bitcoin’s next bull market top could occur in September 2025. However, Toby argued that the current market conditions are different from previous cycles. He explained that Bitcoin had already experienced all-time highs before its halving, a scenario that had not occurred in past cycles. Toby predicted that things might happen faster this time, with Bitcoin likely to break out of its accumulation range in the coming months and potentially surpass $100,000. He remained optimistic about the near-term future for Bitcoin, stating that the market is poised for a significant rally soon.
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