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Indeed, FDIC is not something that you need in the case of BTC as it's fluid and is not locked to one "bank" / "exchange" / new future entities. It's interopera

Indeed, FDIC is not something that you need in the case of BTC as it's fluid and is not locked to one "bank" / "exchange" / new future entities. It's interoperable between many systems today too.

xirbeosbwo1234 6y ago
That is good news for the users of Mt.Gox, Bitcoin7, Bitcoinica, Bitfloor, Vircurex, Inputs.io, Picostocks, Flexcoin, Poloniex, MintPal, Cryptsy, Bitstamp, BTER, KipCoin, Bitfinex, Gatecoin, Bitcurex, Yapizon, LocalBitcoins, Coincheck, BitGrail, Coinrail, Bithumb, Bancor, Zaif, MapleChange, Cryptopia, Coinbene, Bitrue, BITPoint, Upbit, Eterbase, KuCoin, Livecoin, and the DAO. Their money can never be lost because it is secured by logic itself. EDIT: It appears I forgot to list a few dozen exchange hacks.
Robotbeat 6y ago
It is if you use an online wallet.
- capableweb 6y ago
  If you use an exchange/"bank" like Coinbase, then yeah. What do you mean with online wallet? It's either only you have the keys, or you don't/someone else also does.
  - Robotbeat 6y ago
    If I have a soft wallet and I have automatic updates enabled on my OS, do only I have the keys or do Microsoft/Apple/Google/Samsung/Canonical have them as well? EDIT: For clarity, I was referring to an actual online wallet, a wallet on a website, but it’s not too different to ask the same question about a software wallet on a computer-connected device that does automatic OS or wallet software updates.
    - miguelmota 6y ago
      Only you have the keys, otherwise it'd be like saying if you purchased and downloaded a movie, then Microsoft/Apple/Google/Samsung/Canonical have ownership of them as well.
      - Robotbeat 6y ago
        If you’re not using a cold wallet and doing the transaction signing completely offline, then you’re trusting Microsoft/etc not to steal your keys. It’s not just you who could have access to the keys if your keys are stored on an Internet-connected device somewhere that can have its software updated.
        ClumsyPilot 6y ago
        Well in use Intel CPU their management engine could steal your keys from RAM as you are making a transaction. So unless you build your own computer you are trusting someome somewhere
        Robotbeat 6y ago
        What good will the management engine stealing my keys be to Intel or anyone if I never even put the computer I’m using to sign transactions or generate the public key online? The signed transaction can be transferred manually in hexadecimal to an internet-connected computer which broadcasts the transaction (but never sees the private key ever). Secondly, you can use computer hardware from before even the invention of Bitcoin, and then code the software on that hardware, developing the libraries yourself. Third, you can use computers simple enough that it’s not feasible to hide any management engine trickery in it. Fourth, yes, you CAN actually build your own computer, which I’m trying to do. :) But to further your point, I still haven’t proven to myself the argument that the elliptic curve used by Bitcoin hasn’t been intentionally compromised like the NIST curves were. I take the word of the Internet for granted there... But I suppose I could prove that myself.
tw04 6y ago
If you think the people that exchange BTC wouldn't lockdown immediately in the event of a run on BTC, I think you're being naive.
- Geee 6y ago
  Most bitcoin is not held on exchanges or in custody. "run on BTC" is not possible, because people already own their bitcoin. Also, exchange reserves aren't fractional, so there's no reason they would lockdown withdrawals. You can track the bitcoin reserves on exchanges here: https://cryptoquant.com/overview/full/247?window=day https://cryptoquant.com/overview/full/247?window=day
- geomark 6y ago
  What does a "run on BTC" mean?

Indeed, FDIC is not something that you need in the case of BTC as it's fluid and is not locked to one "bank" / "exchange" / new future entities. It's interoperable between many systems today too.

xirbeosbwo1234 6y ago

That is good news for the users of Mt.Gox, Bitcoin7, Bitcoinica, Bitfloor, Vircurex, Inputs.io, Picostocks, Flexcoin, Poloniex, MintPal, Cryptsy, Bitstamp, BTER, KipCoin, Bitfinex, Gatecoin, Bitcurex, Yapizon, LocalBitcoins, Coincheck, BitGrail, Coinrail, Bithumb, Bancor, Zaif, MapleChange, Cryptopia, Coinbene, Bitrue, BITPoint, Upbit, Eterbase, KuCoin, Livecoin, and the DAO. Their money can never be lost because it is secured by logic itself. EDIT: It appears I forgot to list a few dozen exchange hacks.

Robotbeat 6y ago

It is if you use an online wallet.

capableweb 6y ago
If you use an exchange/"bank" like Coinbase, then yeah. What do you mean with online wallet? It's either only you have the keys, or you don't/someone else also does.
- Robotbeat 6y ago
  If I have a soft wallet and I have automatic updates enabled on my OS, do only I have the keys or do Microsoft/Apple/Google/Samsung/Canonical have them as well? EDIT: For clarity, I was referring to an actual online wallet, a wallet on a website, but it’s not too different to ask the same question about a software wallet on a computer-connected device that does automatic OS or wallet software updates.
  - miguelmota 6y ago
    Only you have the keys, otherwise it'd be like saying if you purchased and downloaded a movie, then Microsoft/Apple/Google/Samsung/Canonical have ownership of them as well.
    - Robotbeat 6y ago
      If you’re not using a cold wallet and doing the transaction signing completely offline, then you’re trusting Microsoft/etc not to steal your keys. It’s not just you who could have access to the keys if your keys are stored on an Internet-connected device somewhere that can have its software updated.
      - ClumsyPilot 6y ago
        Well in use Intel CPU their management engine could steal your keys from RAM as you are making a transaction. So unless you build your own computer you are trusting someome somewhere
        Robotbeat 6y ago
        What good will the management engine stealing my keys be to Intel or anyone if I never even put the computer I’m using to sign transactions or generate the public key online? The signed transaction can be transferred manually in hexadecimal to an internet-connected computer which broadcasts the transaction (but never sees the private key ever). Secondly, you can use computer hardware from before even the invention of Bitcoin, and then code the software on that hardware, developing the libraries yourself. Third, you can use computers simple enough that it’s not feasible to hide any management engine trickery in it. Fourth, yes, you CAN actually build your own computer, which I’m trying to do. :) But to further your point, I still haven’t proven to myself the argument that the elliptic curve used by Bitcoin hasn’t been intentionally compromised like the NIST curves were. I take the word of the Internet for granted there... But I suppose I could prove that myself.

tw04 6y ago

If you think the people that exchange BTC wouldn't lockdown immediately in the event of a run on BTC, I think you're being naive.

Geee 6y ago
Most bitcoin is not held on exchanges or in custody. "run on BTC" is not possible, because people already own their bitcoin. Also, exchange reserves aren't fractional, so there's no reason they would lockdown withdrawals. You can track the bitcoin reserves on exchanges here: https://cryptoquant.com/overview/full/247?window=day https://cryptoquant.com/overview/full/247?window=day
geomark 6y ago
What does a "run on BTC" mean?