Post
Topic
Board Bitcoin Discussion
Re: Bitcoin was created to reform money and provide financial freedom
by
BlackHatCoiner
on 03/03/2024, 14:25:42 UTC
Most people are probably not aware that the above items--and much, much more--are done every day by reputable large financial institutions, who follow standards like 27001 compliance and lots of other standards and practices. Employees of those institutions are background checked, fingerprinted, and so on.
For the second time, there exist no such institutions in cryptocurrencies. The investor has to choose to either do this themselves by taking responsibility of the security of their coins, or trust a stranger that does not follow the aforementioned standards (like 27001 compliance). Or just not invest into cryptocurrencies.

And crypto brokers initially have existed with less regulation that helps ensure they correctly care for people's money.
Yeah, sure! Like the case with Mt Gox?  Cheesy

Again, your average consumer does not want to engage in trade craft just to hold on to their savings. Most people don't do this for a living, they do other things.
I thought we were talking about serious investors, who will buy large quantities, i.e. Michael Saylor. Not "average consumers".

Find me the last time a major US financial institution like Citibank lost their customers bank accounts.
Again, bad analogy!

And "airgapped" won't help you if a thief breaks into your house, takes your airgapped device, and then uses a form of cryptanalysis that has thus far never failed to break even the strongest encryption.
That's why we have multi-sig. To guard funds under divided possession. The investor could save two keys in his house, another two in his companies and/or into the bank's vaults. They could then decide how many keys are required, from the total, to spend coins from the wallet. Depending on that configuration, a thief will have to break into both their house, the bank and/or their company simultaneously!

The existence (and fails) of companies like Binance and the others who have lost customer data speaks, I think, to the fact that crypto investing is basically brand new.
I disagree. The reason why they cannot be trusted with your coins is that they promise to safeguard something that is outside their control. If a thief compromises your bank's account, you just report it to the police and to the bank accordingly. Depending on the time it takes you to realize it, you will likely not experience loses, and might even have their potential transactions reversed. If a thief breaks into your Binance's account and makes a withdrawal, you're finished. The Binance can't help you, the police can't help you etc. That's the fundamental difference with debit money and hard cash.