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Why do these services exist at all ? Cannot the bit coin protocol be used by end users with full features without a third party "wallet" service ? Are these s
by rsync 13y ago
Why do these services exist at all ?
Cannot the bit coin protocol be used by end users with full features without a third party "wallet" service ?
Are these services purely for people that don't understand files and encryption utilities ?
I do not use bitcoin, but if I did, I assume I would just protect and back up those computer files like many other extremely valuable computer files I have.
What am I missing here ?
- fnordfnordfnord 13y agoExchanges are for trading and speculation.
- natdempk 13y agoThese services generally provide a service that is not part of standalone bitcoin, whether that is a payment API which generates addresses and verifies transactions for customers, an exchange to trade and value bitcoin based on fiat currency, or a user-friendly wallet that allows access from anywhere with internet access and bypasses the need for a user to download and update their own copy of the blockchain. (The blockchain is pretty large. It currently sits around 13GB and is always growing.) There are also end-user applications like Armory, which are meant to manage and secure a wallet on an end-user's machine, but its inevitable that people will use online services for foreseeable future.
- walden42 13y agoThere are clients, like Electrum and MultiBit, that don't require downloading the whole blockchain. The average person should be using these, IMO, not trusting any e-wallets.
- sliverstorm 13y agoMtgox is an exchange, so think of your stock broker. You wire your broker/brokerage a pool of your money, and shuffle it around in the brokerage among various assets. If you like, you can put more in or take some out, but the brokerage generally holds your assets while you are trading.
- rjzzleep 13y agobecause getting coins used to be much easier a couple years back