Maybe MagicalTux should try to get some insurance against fuckups like this. Might be expensive and put a lot of hassle on him by ways of auditor wanting to see all code pre-production
500k BTC are uninsurable, because it is practically impossible to replace them once lost.
Really? It seems just the opposite to me. BTC are completely fungible. The insurer would simply needs to buy them in...or mine them. It would only be impossible to insure, say, 22x10^6 BTC.
It might be quite expensive to insure high quantities since the actuaries would need to consider the cost of buying them in. I, for instance, can be shaken from my position by an offer which in excess of 'parity'. 'parity' to me is roughly 1kg of gold per BTC which makes the math easier
