Quote from: inBitweTrust on October 31, 2014, 03:33:11 AM

Quote from: Ron~Popeil on October 31, 2014, 02:54:09 AM

It is a cool idea but I prefer a paper wallet. I don't want to depend on being able to access coinable servers to use my bitcoin. As was pointed out above it is a nice way for less savvy people to have a secure way to store their assets.

You don't need access to coinbase servers to transfer your coins. With their creative arrangement they can go completely out of buciness and you can still recover your coins.

My concern more has to do with theft by governments through taxation. Coins stored with coinbase in their vault will be subject to taxation and capital gains taxes when they appreciate. (I plan on paying this if I have any coins but others may not want to for many reasons.)

Multisig paper wallets seem like a better option for those that are savvy, or some of the new hardware coming out like -
http://mycelium.com/entropy
and other hardware wallets can help secure people.

You are due capital gains taxes on any gains resulting from the sale of bitcoin regardless of where the coins are held (although one tax issue that has not been addressed is how TX fees should be treated for tax purposes).

I think this setup is an interesting idea, however I don't think many people who are not tech savvy are going to understand how this works and could potentially make mistakes that end up costing them a lot of money