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When you put $100 in a bank it doesn't matter if that exact $100 bill is stolen by a bank robber, you still have $100 in the bank. Additionally bank accounts ar

When you put $100 in a bank it doesn't matter if that exact $100 bill is stolen by a bank robber, you still have $100 in the bank. Additionally bank accounts are federally insured. That isn't the case with bitcoin.

grubles 12y ago
What happens when you get robbed at gun-point and have your cash stolen? What will the bank do then?
- zf00002 12y ago
  What does that have to do with the bank?
fnordfnordfnord 12y ago
That's not exactly true. If someone uses your debit card number to spend your money there are some circumstances where you will not recoup all of your losses. http://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards#Limit http://www.consumer.ftc.gov/articles/0213-lost-or-stolen-cre...
- woofyman 12y ago
  Which is why I only use credit cards.
Mtinie 12y ago
> When you put $100 in a bank it doesn't matter if that exact $100 bill is stolen by a bank robber, you still have $100 in the bank. For the majority of digital currency exchanges that I've used, deposits may be sent to unique address to associate it with your user record, but the funds are then typically moved into a pool to facilitate trading. I don't know off-hand of any exchanges that atomically isolate user funds and utilize the block chain to handle internal transaction reconsiliation. There's an off-shoot of block chain tech that is attempting to do atomic, cross-chain trading using the block chain, but it's still very new and experimental[1]. > Additionally bank accounts are federally insured. Up to a certain amount. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.[2] --- [1] https://en.bitcoin.it/wiki/Atomic_cross-chain_trading https://en.bitcoin.it/wiki/Atomic_cross-chain_trading [2] https://www.fdic.gov/deposit/deposits/ https://www.fdic.gov/deposit/deposits/
- kungfooguru 12y ago
  Right, $250k, not really worth nothing every time since that is basically infinity to everyone in the US.

grubles 12y ago

What happens when you get robbed at gun-point and have your cash stolen? What will the bank do then?

zf00002 12y ago
What does that have to do with the bank?

fnordfnordfnord 12y ago

That's not exactly true. If someone uses your debit card number to spend your money there are some circumstances where you will not recoup all of your losses. http://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards#Limit http://www.consumer.ftc.gov/articles/0213-lost-or-stolen-cre...

woofyman 12y ago
Which is why I only use credit cards.

Mtinie 12y ago

> When you put $100 in a bank it doesn't matter if that exact $100 bill is stolen by a bank robber, you still have $100 in the bank. For the majority of digital currency exchanges that I've used, deposits may be sent to unique address to associate it with your user record, but the funds are then typically moved into a pool to facilitate trading. I don't know off-hand of any exchanges that atomically isolate user funds and utilize the block chain to handle internal transaction reconsiliation. There's an off-shoot of block chain tech that is attempting to do atomic, cross-chain trading using the block chain, but it's still very new and experimental[1]. > Additionally bank accounts are federally insured. Up to a certain amount. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.[2] --- [1] https://en.bitcoin.it/wiki/Atomic_cross-chain_trading https://en.bitcoin.it/wiki/Atomic_cross-chain_trading [2] https://www.fdic.gov/deposit/deposits/ https://www.fdic.gov/deposit/deposits/

kungfooguru 12y ago
Right, $250k, not really worth nothing every time since that is basically infinity to everyone in the US.