Bitcoin city in El Salvador was a test for custodian trojan horse.
This one hit hard close to home; I am grateful these volunteers are helping my people, but I can't hold my admiration, but I couldn't help it, and I noticed that they are using custodian services like Wallet of Satoshi.
I understand my people are not the savviest when it comes to technology; that has been since a long time ago; they are giving people some satoshis and telling them they are using Bitcoin. Still, the truth is at any moment, the government in El Salvador can say to WoS company that they need to hold and seize any assets that are used inside the country of El Salvador under any excuse.
Because El Salvador is a small country, WoS could get away with not following the government's mandate, but if it were a country like the USA, things would be a lot different look at Coinbase for reference.
Pretty much here at Bitcoin Cash, we know that high transaction fees will end up with users using custodian services, where you will save on costs because your coins are not living your service provider but are just a private ledger, on which they can print as many bitcoin as they want, or they can get a government or court order, to seize, freeze or even confiscate your balances.
Bitcoin supporters are already saying that honest people or people that know no better than their custodian services are the real deal; meanwhile, these people may start using their services without knowing the real dangers of custodian services.
Bitcoin Core will tell people lies to those who know no better. They are not using Bitcoin, and they are using PayPal custodian Bitcoin or Custodian Bitcoin, which can be taken away by third parties.
Bitcoin Cash is the real peer-to-peer currency.
It turns out that Bitcoin in El Salvador is just a big joke because now the whole country uses a custodian, pretty much from the get the entire goal of promoting custodians as if it was using Bitcoin was the goal from the get-go. Notice I initially wrote this article before Bitocin was legal currency in El Salvador. Still, if you pay attention to the video, you will notice that people were using custodians from the get-go.
The Bitcoin Cash community knew from the get-go that Bitcoin was going to impulse Core as a custodian because we know a high fees network can't work as a currency, the usage of custodians is a catastrophe with a high price, you lose any advantage that Bitcoin may offer when it comes to hard money and decentralized, which means that sooner or later Salvadorians will find out why you don't trust your funds to a third party and will pay the price for using a custodian as a wallet when such thing is not a wallet but just another bank account.
The price to pay will be high at some point and painful too, one people will lose their privacy, and if Salvadorians don't report their taxes accurately. The government decides to punish that with a capital forfeit. Salvadorians won't have a say, not to mention that Latin American governments can't be trusted; if Nayib Bukele repeats what previous governments did, which is steal the government's funds, citizens could lose all the Bitcoins the El Salvador nation acquired. Nayib will have to move to a country with no extradition, and he will be jail-free, just like previous presidents.
Not to mention employees for the Chivo app could end up just walking up with the money and leaving the government only with the debt. At the same time, the Bitcoins are moved to a private wallet, and you, as a custodian user, expose yourself to that risk when you hold funds with any custodian.
