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Crypto transactions are no less reversible than ACH or wire transfers. The warm fuzzy feeling you have about ACH is you have a trusted third party intermediary

Crypto transactions are no less reversible than ACH or wire transfers. The warm fuzzy feeling you have about ACH is you have a trusted third party intermediary that contractually or legally guarantees they will give you the same amount of currency back under certain conditions. If something goes wrong with that ACH/wire transfer and you don't get your money back, you'll have to sue, just like you would crypto.

katbyte 5y ago
The destination of a wire is an account at a bank, who’s owner can be tracked down to recover the money from. Crypto wallet owners can be entirely hidden and impossible to sue.
- Consultant32452 5y ago
  Wire fraud is a massive problem. I recently bought a house and I was given very specific instructions about how to verify the wire destination and it was made quite clear that if I was taken in by a fraudster I would never get my money back. Lots of money, like buy a house lots of money. Almost zero chance I would get my money back. Have you ever worked a retail/food chain job and gotten to see how many CC transactions are invalid/fraudulent resulting in the business losing money? I worked at a pizza place where 5-10% of CC transactions were bogus (college town). Checks were more like 20%. All financial transactions are trust relationships. Some are higher trust than others. If you could buy groceries at Wal-Mart or a new iPhone from apple.com with bitcoin you would have no concern about that. If you send money to a rando on the internet, well it doesn't matter all that much whether it's crypto or dollars. Sometimes you will have third party intermediaries, like VISA, who will offer certain guarantees/insurance for a fee. It's as simple as that. It's silly to compare transactions with known/trusted entities like a physical business or trusted insurance provider/intermediary like VISA with sending your money to a random anonymous bitcoin address. You would not generally be wiring money to a random anonymous bank account either.

katbyte 5y ago

The destination of a wire is an account at a bank, who’s owner can be tracked down to recover the money from. Crypto wallet owners can be entirely hidden and impossible to sue.

Consultant32452 5y ago
Wire fraud is a massive problem. I recently bought a house and I was given very specific instructions about how to verify the wire destination and it was made quite clear that if I was taken in by a fraudster I would never get my money back. Lots of money, like buy a house lots of money. Almost zero chance I would get my money back. Have you ever worked a retail/food chain job and gotten to see how many CC transactions are invalid/fraudulent resulting in the business losing money? I worked at a pizza place where 5-10% of CC transactions were bogus (college town). Checks were more like 20%. All financial transactions are trust relationships. Some are higher trust than others. If you could buy groceries at Wal-Mart or a new iPhone from apple.com with bitcoin you would have no concern about that. If you send money to a rando on the internet, well it doesn't matter all that much whether it's crypto or dollars. Sometimes you will have third party intermediaries, like VISA, who will offer certain guarantees/insurance for a fee. It's as simple as that. It's silly to compare transactions with known/trusted entities like a physical business or trusted insurance provider/intermediary like VISA with sending your money to a random anonymous bitcoin address. You would not generally be wiring money to a random anonymous bank account either.