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Right, I just want to warn people away from putting significant Bitcoin holdings directly into Coinbase to use this card without being educated on the risks.
by drcode 11y ago
Right, I just want to warn people away from putting significant Bitcoin holdings directly into Coinbase to use this card without being educated on the risks.
- soared 11y agoThe risk of what? Coinbase stealing everyone users bitcoins and running away? Better not use any bank, credit union, or money transferring service to stay safe.
- eli 11y agoMy bank deposits are FDIC insured
- automathematics 11y agoWorth mentioning, Coinbase has some kind of insurance: https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured- https://support.coinbase.com/customer/portal/articles/166237...
- vkou 11y agoThis is only insurance for their hot wallet (Quite literally, the cash that a bank would keep in their teller registers.) The overwhelming majority of their deposits are not insured.
- gohrt 11y agoThat's Coinbase's insurance. That's not coinbase customers' indurance. FDIC is _my_ insurance coverage. > Coinbase is insured against employee theft and hacking in an amount that exceeds the average value of online bitcoin it holds at any given time. If someone steals 90% of Coinbase's transiently held coins, no insurance coverage.
- rockinghigh 11y agohttps://en.wikipedia.org/wiki/Mt._Gox https://en.wikipedia.org/wiki/Mt._Gox
- 01Michael10 11y agoBanks, credit unions, and money transferring institutions are heavy regulated businesses that have to follow rules. Money you have in bank and credit union accounts are also insured. Coinbase is a private company that is barely regulated. Any money put into Bitcoins should be money you are willing to lose.
- umanwizard 11y agoEdit: meant to reply to your parent. Sorry dude but I can't down vote this hard enough. Please read about the history of Bitcoin exchanges, and for that matter the history of banks. They arent trustworthy, and become insolvent all the time. The FDIC exists for a reason.
- telotortium 11y agoHow many traditional financial institutions have done an exit scam on their users, though? Exit scams happen all the time with Bitcoin exchanges and dark net markets.