Bitcoin Believers Face a Tough Choice: Safety or Sovereignty?

The Rise of Wrench Attacks

Bitcoin's early adopters are grappling with a critical decision. Once staunch advocates of self-custody, they are now reconsidering their stance due to the growing threat of "wrench attacks." These attacks involve real-life coercion, forcing individuals to relinquish control of their Bitcoin.

A Decade of Change

Once dismissed as a joke, wrench attacks have become a serious concern. Jameson Lopp, a prominent Bitcoin expert, has documented over 200 cases across 34 countries. In the first 10 months of 2025 alone, there have been 52 attacks, averaging more than one per week.

High-Profile Concerns

Even seasoned Bitcoin users are feeling the pressure. Willy Woo, a renowned on-chain analyst, has admitted to no longer keeping his own Bitcoin. He suggests that large holders should explore alternative options. The Bitcoin Family, known for living entirely on Bitcoin, has also altered their strategy. They have split their seed phrases and encrypted data across four continents, ensuring that no single threat can compromise all their assets.

Turning to Wall Street

Some Bitcoin users are seeking refuge in traditional finance. By moving their Bitcoin into spot ETFs, they avoid the risks of physical threats and lost keys. However, this shift is not without controversy. Alex Gladstein, a Bitcoin advocate, expresses concern that this trend could lead to increased control by traditional financial institutions.

The Middle Ground

A compromise solution is emerging in the form of "collaborative custody." This approach allows users to maintain control of their Bitcoin while benefiting from backups and recovery options. Anthony Yeung of CoinCover describes this as a "digital Fort Knox," offering both security and control.

Dissenting Opinions

Not everyone is convinced. Tony Yazbeck, co-founder of The Bitcoin Way, argues that trusting a middleman is riskier than self-custody. He advises users to remain discreet about their wealth and manage their keys meticulously.

The Future of Bitcoin

The future of Bitcoin remains uncertain. While some see it becoming more aligned with traditional finance, others believe it still embodies the principles of self-sovereignty. One thing is clear: the balance between freedom and fear is increasingly precarious.