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I think it's a pretty open-and-shut case. Startup companies with no serious experience in information security, or finance, or financial information security a
by meowface 12y ago
I think it's a pretty open-and-shut case.
Startup companies with no serious experience in information security, or finance, or financial information security are making large web applications that store and trade digital currency. That currency, if taken, cannot be recovered in any way unless law enforcement physically raids the perpetrator, just as if they stole physical cash.
There are millions of unscrupulous fraudsters and black hats out there who realize they can effectively rob banks over the Internet, sometimes as easily as walking in through the side door and walking out with all their assets without anyone ever knowing they were there until they're long gone. Bitcoin banks and exchanges are the absolute most valuable target for cybercrime, due to the incredibly high potential for reward (6, 7, or 8 figures from one heist is not uncommon), the irrevocability of the currency, and the low chance of being found or caught.
It's a bank robber's perfect fantasy. It does take a lot of time to liquidate the treasure chest, but it's still pretty trivial to do securely.
- smoyer 12y ago"Startup companies with no serious experience in information security, or finance, or financial information security" You hit the nail on the head ... the BitCoin exchanges were created because someone saw it as the "next big thing" (tm). I'm not sure I'd trust the Winkelvoss' BTC fund any more than the start-up exchanges until their code is audited by a cryptoanalyst and their audit systems are sophisticated enough to throw a dead-man's switch.
- meowface 12y agoExactly. Coinbase is the only company I trust in this space right now. They take security very seriously and have received several professional audits.