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

Software developer Jameson Lopp believes that improving the usability and user experience of Bitcoin (BTC) self-custody solutions and creating more opportunities to acquire BTC will be key to further adoption of the premier cryptocurrency.

The co-founder of Casahodl, who is a prominent figure in the Bitcoin and broader cryptocurrency space, spoke about the challenges of building self-custody solutions in an exclusive interview with Cointelegraph journalist Joseph Hall ahead of Miami Bitcoin Week.

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Lopp has a wealth of experience as a developer building a range of services and products in the cryptocurrency space, but has largely focused on digital asset self-custody in recent years. Casahodl offers a range of BTC self-custodial solutions and will provide Ethereum support in 2023:

“The default path for most people to get into Bitcoin is through centralized exchanges that generally monitor their customers because they are required by law to do so.”

Lopp speculated that users typically purchase an entry-level amount of Bitcoin on an exchange and leave their holdings in the respective wallet. He wondered if 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-preservation is a thing are afraid to take on the responsibility that comes with it.”

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

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

Lopp added that creating more ramps for people to acquire Bitcoin and boosting economic activity with the cryptocurrency. He used the decentralized social media platform Nostr as an example of an ecosystem that has integrated the Bitcoin Layer-2 Lightning protocol as a means of driving BTC adoption:

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

In countries like the UK, Bitcoin advocates and a range of industry leaders created a policy group in April 2023 to promote education, investment, business and job creation for the ecosystem.

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

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