3 ms·

I admitted using bitcoins currently is hard and expensive errors are easy to make. But this is a software issue. Old "good enough" security habits won't fly, as

I admitted using bitcoins currently is hard and expensive errors are easy to make. But this is a software issue. Old "good enough" security habits won't fly, as a lot money is on now on the line (old security issues usually didn't cause too much harm for most users). New practices/implementations will have to be developed, but I don't see why that won't happen. Even nowadays with a few simple steps you can make your bitcoin stash VERY VERY secure. Install a fresh copy of linux on a USB, disconnect all networking capabilities, boot to the USB, create a new wallet/address (brain or paper) using established methodology, turn off computer, remove USB, presto, you have a un-hackable bitcoin address. You could even create a multi-sig stash that requires a digital signature from multiple people (2-of-3, 3-of-5, etc). Obviously, this is cumbersome and non-trival for the average joe. But with a small amount of imagination it is easy to see how everyday solutions could be developed.

XorNot 13y ago
Which part of those steps feels "simple" to you, compared to the various protections my credit card company and bank offer me? You also haven't covered anything about backups, which means if you lose that USB or it dies, then poof all that money becomes unrecoverable permanently. You can't even access that money now without booting an entire new OS on the computer, which means good luck spending it, not to mention, for a digital currency you might want network connectivity as well.
- dwaltrip 13y ago
  Creating backups is not that hard. Print out extra copies, give one to your sister/best friend/lawyer/whoever you trust. Or store the seed phrase (or memory jog that only you will understand) in many places. Upload encrypted versions to dropbox/gmail/etc. Put a copy in your locked safe. There are many options. There are several tools that allow you to create a transaction offline (using similar steps to what I listed above, which only take 10-20 minutes) and then you can broadcast the raw transaction text to the network using something like http://blockchain.info/pushtx http://blockchain.info/pushtx. Again, this only necessary for super secure storage of long term savings/investments/etc. Lastly, one could easily keep small, day-to-day amounts on their smartphone, which can spent and transferred quite conveniently (average joe level convenient). Then top up this spending wallet every so often using your offline wallet (10 minute time commitment every week or two). The options/methods for doing all of this will only get easier. We are in the pre-alpha stages of digital currency software right now. Think web in the early 90s.

XorNot 13y ago

Which part of those steps feels "simple" to you, compared to the various protections my credit card company and bank offer me? You also haven't covered anything about backups, which means if you lose that USB or it dies, then poof all that money becomes unrecoverable permanently. You can't even access that money now without booting an entire new OS on the computer, which means good luck spending it, not to mention, for a digital currency you might want network connectivity as well.

dwaltrip 13y ago
Creating backups is not that hard. Print out extra copies, give one to your sister/best friend/lawyer/whoever you trust. Or store the seed phrase (or memory jog that only you will understand) in many places. Upload encrypted versions to dropbox/gmail/etc. Put a copy in your locked safe. There are many options. There are several tools that allow you to create a transaction offline (using similar steps to what I listed above, which only take 10-20 minutes) and then you can broadcast the raw transaction text to the network using something like http://blockchain.info/pushtx http://blockchain.info/pushtx. Again, this only necessary for super secure storage of long term savings/investments/etc. Lastly, one could easily keep small, day-to-day amounts on their smartphone, which can spent and transferred quite conveniently (average joe level convenient). Then top up this spending wallet every so often using your offline wallet (10 minute time commitment every week or two). The options/methods for doing all of this will only get easier. We are in the pre-alpha stages of digital currency software right now. Think web in the early 90s.