The article argues that the rise of Bitcoin banks is inevitable due to the inherent limitations of Bitcoin and the value of additional services that require third-party involvement. While Bitcoin does not scale well and lacks the necessary infrastructure for self-custodial layers to compete with traditional banks, the article suggests that a localist approach focusing on user-friendly software and regulatory carve outs for small-scale activities can facilitate easy and safe interaction with Bitcoin. The article emphasizes the need for improved software, regulatory recognition, and a shift towards community dependence rather than relying on legacy financial institutions to address the current constraints and ensure the continued growth and adoption of Bitcoin.



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