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Sure, but the processes that make banking secure mostly rely on human interaction, insurance and centralisation, which are obviously difficult or impossible to

Sure, but the processes that make banking secure mostly rely on human interaction, insurance and centralisation, which are obviously difficult or impossible to apply to Bitcoin. The current batch of Bitcoin businesses are getting hard lessons in information security, whereas the mainline banking system can compensate for any deficiencies in their software with more traditional security processes. To me, one of the more interesting results of Bitcoin is how critical information security is to the businesses that deal in it, and how a flaw in their security can make companies vanish overnight. It really provides some darwinian pressure to get security right!

beat 13y ago
And fiat currency starts looking better all the time. The fact that the most powerful security mechanisms aren't even applicable to digital currency should be a huge red flag. Short the exchange rate + significant DDOS attack on the exchanges = millions in free money. That's just a for example. It doesn't even require explicit crime on the bitcoins themselves, and can be done at a safe remove through multiple cutouts. (Historical point of comparison - shell companies were used to short airline stock just before 9/11, resulting in tremendous windfall profits for presumably close allies of the perpetrators)
- weavejester 13y ago
  > And fiat currency starts looking better all the time. The fact that the most powerful security mechanisms aren't even applicable to digital currency should be a huge red flag. You could make similar arguments about security on the internet compared to physical security in the real world. The recent Target credit card theft, for instance - it's unlikely that the thieves could have appropriated 40 million credit card numbers by physically taking them! > Short the exchange rate + significant DDOS attack on the exchanges = millions in free money. That's just a for example. It doesn't even require explicit crime on the bitcoins themselves, and can be done at a safe remove through multiple cutouts. Sure, but you could achieve a similar effect by attacking an internet retailer and shorting their stock. It's also a lot easier to short stock, which is a shame, as shorting typically reduces price volatility.

beat 13y ago

And fiat currency starts looking better all the time. The fact that the most powerful security mechanisms aren't even applicable to digital currency should be a huge red flag. Short the exchange rate + significant DDOS attack on the exchanges = millions in free money. That's just a for example. It doesn't even require explicit crime on the bitcoins themselves, and can be done at a safe remove through multiple cutouts. (Historical point of comparison - shell companies were used to short airline stock just before 9/11, resulting in tremendous windfall profits for presumably close allies of the perpetrators)

weavejester 13y ago
> And fiat currency starts looking better all the time. The fact that the most powerful security mechanisms aren't even applicable to digital currency should be a huge red flag. You could make similar arguments about security on the internet compared to physical security in the real world. The recent Target credit card theft, for instance - it's unlikely that the thieves could have appropriated 40 million credit card numbers by physically taking them! > Short the exchange rate + significant DDOS attack on the exchanges = millions in free money. That's just a for example. It doesn't even require explicit crime on the bitcoins themselves, and can be done at a safe remove through multiple cutouts. Sure, but you could achieve a similar effect by attacking an internet retailer and shorting their stock. It's also a lot easier to short stock, which is a shame, as shorting typically reduces price volatility.