CZ Says Exchanges May Be Safer Than Self-Custody If Bitcoin Loss Data Is Accurate

CZ comments on Bitcoin loss statistics, noting exchange losses are more transparent than self-custody losses. He advocates for a balanced custody approach rather than declaring one method superior.

Woofun AI reports that CZ addressed recent Bitcoin loss statistics by stating that, if the data holds true, assets held on exchanges may statistically be safer than those in self-custody. He explained that exchange-related losses are easier to track, whereas self-custody losses often go unreported. CZ added that neither custody method is inherently superior and suggested a balanced approach suits different users best.

The discussion follows data from Willy Woo indicating approximately 1.57 million Bitcoin have been permanently lost via self-custody, compared to roughly 1.51 million Bitcoin lost due to exchange hacks and collapses.