Quote from: nyktalgia on March 19, 2014, 06:48:49 PM

Quote from: GaryBirch on March 19, 2014, 06:43:31 PM

Quote from: coinflow on March 19, 2014, 06:30:45 PM

Quote from: erundook on March 19, 2014, 04:36:54 PM

Long story short: an insurance company for Bitcoin-based services.

That idea is really good. You never can be 100% safe. And all the banks and other exchanges have similar insurance-institutions.

It's kind of a start, but who is going to validate that the Exchange is using secure practices in their systems and their coding standards? Who's gonna run a thorough PEN test to validate the Site is solid? Who is going to make sure that theses exchanges actually treat transactions fairly, don't front run their clients, aren't getting paid off to let certain big traders aren't allowed to jump the orderbook, etc...

Insurance comes after there is a way to make sure the sites are secured and the consumers of these exchanges are being treated fairly in every way and not stolen from behind the scenes.

Put it this way... either do it right or don't do it at all.

Insurance is a scam, and it is... that is what you are saying in essence... I completely agree bro, you are smart man

The way I see it, cryptocurrency banks/exchanges are kinda like where most banks were during the 19th century. Your bank got robbed by masked bandits, you were just outta luck. Later the Fed came along and backed the banks using everybody else's money which spread the risk around but required everyone to pay into the system. Also resulted in more centralized control over the banks for governments. Good for them and supposedly good for us, but, as we have seen in recent times, maybe wasn't so good for us.

Personally, I prefer my crypto unbacked and uninsured. I'll take that risk to keep some government entity's grubby fingers off my crypto. It means I have to be more cautious about who I do business with and stick only with the people I trust. And if I get shafted, yeah it sucks, but so does life. In the end better than being a fiduciary slave to greedy governments and insurance companies.