I was talking about if user data is destroyed which is essential in cross-checking who owns which but perhaps it's not what you meant here: 🤔
I think got what you meant, I was just pointing out that securing crypto is two things at once: making sure it isn't deleted and making sure it isn't discovered. Either one of these things can cause a major disaster, so you have to do both at the same time. It's far easier to do one or the other, but doing both at the same time compounds the complexity.
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If they are hacked and the addresses get destroyed or stolen (we'd never know which),
yes they are insured but up to $250k only per account.
It still doesn't make sense to me how they plan to cover $250,000 for each account with compromised crypto, given that most of Coinbase's assets are in crypto.It is worth noting that only fiat deposits are insured because coinbase stores them in FDIC-insured banks-- probably doesn't apply to non-US coinbase customers as well tho cmiiw. Cryptocurrencies remain uninsured.
You can store USD in your Coinbase account just like at any bank. USD holdings would be FDIC insured.
I'm actually not sure about non-US residents storing USD (or cash equivalents) in a US-based FDIC-insured bank.
If only there was a rep from Coinbase here to clear all of this up for us
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