The custodians have fractioned the bitcoin reserve, it's just a question of by how much? When will the next great insolvency event (e.g. MtGox bank run) happen? 1/4

The State cannot kill bitcoin, but it can set it back by undermining the public's confidence in it. They will try. One way to do this is to pump fiat and prop up custodial businesses, then install directors who promote fractional reserve. 2/4

Note that even full reserve custodians can have liabilities tied to the reserve, insolvency preferences will render the customer fractioned (creditors get preferred liquidation). There is no means of proving solvency of the industry beyond a panic sparked 'bank run'. 3/4

A great insolvency event is going to happen, don't get complacent. It is inevitable, it will always be a part of sound money. Even if the State isn't scheming like I suggest, you can rest assured it will happen naturally. It just what people do. 3/4

Take your keys off custodial services ASAP if you don't care to get fractioned. 4/4