As it stands - with my visa credit card and/or bank checking account... if a hacker/virus happens to "steal my identity" and then make fraudulent charges towards my account... the bank will pay me back.
Actually, bitcoin pretty much solves this problem. The reason there's so much fraud is because there is no private key with credit cards, bank accounts, etc. Whenever you use your credit card, anyone can take that number and use it again as much as they want.
With bitcoin, I can make a payment to anyone, and no one will ever be able to use that address to take anything from me.
Here, I'll show you. Here's my bitcoin address 1H8KtBi9tFtD2vKhNaY9NV5Tbe4rLm4267. Now you post your credit card number and let's see what happens.
Either you didn't get my original question, or you created a straw man argument out of it.
I'm talking about what happens when somebody's password is "phished" from an online bitcoin bank, and all of their money "withdrawn/stolen/etc"...
As it stands, if am stupid enough to enter my username and password into a webpage that LOOKS LIKE my banks... as much money as possible will be withdrawn in as short as time as possible before they account is closed or the perpetrators caught.
I'm just saying the idea that there will be free bitcoin banks out there charging 0% or next to 0% in fees is a fairy tale.
Banks will always need to take in large amounts of money as a form of insurance against phishing/theft/fraud which are all possibilities when you use a central banking website.
No matter what format you keep your money in, somebody will figure out a way to take it from you.