Yeah, but a forgotten password is everybody's own fault,
It really doesn't make any difference whose fault it is. If anything, having it be your fault makes it worse.
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if you say so.... I would not think so.
Of course not. Since they can't be expected to secure their machine, they shouldn't be holding BitCoin keys on it. The best way to use a credit card is not to become a bank or a merchant.
I was under the impression that BitCoin is meant for everybody, not only for banks... So there should be security enough for everybody to use it, otherwise it will fail.
Propose a scheme. I don't know how to do it so that the upside exceeds the downside. If you do, please share.
As long as "oh noes you could install a keylogger specifically for bitcoin, which makes no encryption better than having encryption" is an argument, I won't bother, thank you ;-)