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Lots of money has been lost in other security breaches, oftentimes with much worse consequences because the data is centralized. This hasn't stopped people from

by altoz 12y ago

Lots of money has been lost in other security breaches, oftentimes with much worse consequences because the data is centralized. This hasn't stopped people from shopping at Target for instance. The nice thing is, security breaches in a decentralized network like bitcoin serve to make the entire network anti-fragile. There's a huge incentive for people with bitcoin to secure their own bitcoins against known exploits and hence make that exploit null while inevitably protecting against similar class exploits.

xcubed 12y ago
The difference is that with the Target breach, people knew that they would get their credit card $$ back.
- baddox 12y ago
  There are externalities to this "you don't have to worry at all about the security of your credit card info" feature.
- CalRobert 12y ago
  But the way this is implemented is "credit card companies will take 3% of every transaction they perform, and then give back a very small portion of that to counteract fraud". The power we give these organizations - basically a 3% tax on every transaction - is mind boggling.
  - pjc50 12y ago
    Compared to the spread and inconvenience on $ -> bitcoin -> $ transactions, that's quite cheap. Keeping bitcoin online enough for convenient transactions carries the small but important risk of losing your entire wallet.
    - CalRobert 12y ago
      True, and there are benefits you get for that 3% (rental car insurance, reduced cost of a mugging, etc. etc.) but I still wonder if cash (not necessarily bitcoin) would be better for the system as a whole for everyday purchases.
      - dmm 12y ago
        Keep in mind that cash has costs too. It has to be counted and secured. You have to hire a security company to pick up deposits and most banks charge for cash deposits over a certain amount.
  - cma 12y ago
    But then that tax gets selectively reimbursed via dividend to shareholders. Upward redistribution.
  - a3camero 12y ago
    The credit card companies don't actually don't give up part of their 3%. Chargebacks are up to the merchant: http://en.wikipedia.org/wiki/Chargeback_fraud http://en.wikipedia.org/wiki/Chargeback_fraud.

by altoz 12y ago

xcubed 12y ago

The difference is that with the Target breach, people knew that they would get their credit card $$ back.

baddox 12y ago
There are externalities to this "you don't have to worry at all about the security of your credit card info" feature.
CalRobert 12y ago
But the way this is implemented is "credit card companies will take 3% of every transaction they perform, and then give back a very small portion of that to counteract fraud". The power we give these organizations - basically a 3% tax on every transaction - is mind boggling.
- pjc50 12y ago
  Compared to the spread and inconvenience on $ -> bitcoin -> $ transactions, that's quite cheap. Keeping bitcoin online enough for convenient transactions carries the small but important risk of losing your entire wallet.
  - CalRobert 12y ago
    True, and there are benefits you get for that 3% (rental car insurance, reduced cost of a mugging, etc. etc.) but I still wonder if cash (not necessarily bitcoin) would be better for the system as a whole for everyday purchases.
    - dmm 12y ago
      Keep in mind that cash has costs too. It has to be counted and secured. You have to hire a security company to pick up deposits and most banks charge for cash deposits over a certain amount.
- cma 12y ago
  But then that tax gets selectively reimbursed via dividend to shareholders. Upward redistribution.
- a3camero 12y ago
  The credit card companies don't actually don't give up part of their 3%. Chargebacks are up to the merchant: http://en.wikipedia.org/wiki/Chargeback_fraud http://en.wikipedia.org/wiki/Chargeback_fraud.