The Mark Cuban of this Forum - That was a hypocritical statement on your part. You've also used circular logic.
How is that a hypocritical statement? I invest in companies, I am blunt and have considerable wealth from a good trade on bitcoins. That is very similar to how he rose to his wealth.
Everything you mentioned can have a downside and a rebuttal. Multisig, you can lose one or more of the keys, paper is losable, local clients are malware prone, and we don't have full control we don't have any tools to decrypt your key until you submit a withdrawal request. Considering my experience at hedge funds, I could probably get them to laugh at you.
Local clients aren't really malware prone... I have my client on openBSD so I am probably not going to get any malware. Plus it is used with internet but only for bitcoining.
You make multi copies of the paper wallet and you store it in many locations
Same with multi-sig you can store it in many different locations and use other copies.
I am not opening a business so why would they laugh at me? You do know all the hedge funds I worked at contacted me... I didn't contact them for the job, it was offered to me.
And to contest your conflicting statement on losing data. All wallet and key lists are backed onto multible USB devices, harddrives and encrypted My passports (19 in total) which are clearly marked and located at all times. We use Mongo DB and Heroku for hosting, with multiple backups. You're a programmer you know the power of the cloud.
Encrypted with what? Your pgp key? Obviously something with your control, which means at some point between my browser and your server it isn't encrypted. Cloud hosting doesn't offer greater security it just good if you have scale really fast. So cloud hosting has no bearing on security of bitcoins. It is invalid point to this discussion.
For giggles why should I trust my database with their site? That question is circular and has no answer, your mind is already set on an answer.
Who you trusting with your database? The answer should be no one or heavy encrypted. It has an answer you just don't accept the answer.
All of that responded with was conflicting with past statements from you. All was encrypted with truecrypt.