Banks are WAY MORE secure then Bitcoin

[john_egbert]

Many people say that Bitcoin isn’t safe because some individuals have been scammed, and such cases often make the news. However, what many don’t realize is that even more people have lost money through banks due to robberies, inside jobs, or illegal money transfers.

Of course, Bitcoin wallets can be vulnerable to hacking, but it can be avoided if we store them securely. In contrast, banks can make you a potential target of their evil plan since they know our assets.

With Bitcoin, safety depends on how we manage and protect our wallets. We have direct control over it. But with banks, our security depends on how they operate and all we really have is trust in their system.

Definitely.

We are at our own disgrace with BTC.. And that's both the pros and cons of such a trade-off. Many things to do and think about.

[OpaNauts]

That depends entirely on your definition of 'secure.'

If 'secure' means insured up to a certain limit by a government entity, then yes, that is one form of security.

However, Bitcoin's security is derived from its decentralization and 100% network uptime, meaning it cannot be shut down, seized, or fail overnight due to poor central management.

Major banks—including some of the biggest global institutions—have failed abruptly in the past (e.g., Lehman Brothers, Silicon Valley Bank, etc.), leaving depositors in limbo and often requiring taxpayer bailouts. That kind of 'security' relies on centralized human decisions.

Bitcoin, by contrast, relies on math. It's a different, and arguably more fundamental kind of security.

[Itz-prisigold]

While I do love and am fascinated by the concept of bitcoin, I have one HUGE problem with bitcoin that nobody seems to talk about: If you hold bitcoin and a single person finds out about your wealth, you are at risk of losing everything.

For example say we have person A and person B. Person A has all their wealth invested in the stock market and person B has all his wealth invested in Bitcoin. Both are extremely wealthy and a gang knows about the wealth of both guys.

If a gang wanted to steal Person A's money, they would have to kidnap the victim and then force him to sell his stocks. Then they would have to wait 2 whole business days for the funds to settle before withdrawing out of a brokerage account. Then once the funds hit the victim's chequing account they would only be able to send a limited amount of money before reaching a sending limit of like 3000-5000. The only way for a gang to steal a large amount of money would be if they forced the victim to walk into a PHYSICAL bank and request a big withdrawal which no gang would risk. The way banks are set up it takes such a long time to withdraw large amounts of money so for gangs it's virtually impossible to steal a persons life savings through stock market investments.

Now if a gang wanted to steal person B's money it's a walk in the park. Once a gang gets in Person B's house, all they have to do is torture the victim until eventually the victim gives up his cold wallet and pin. Then all the gangs have to do is transfer the bitcoin to a different cold wallet and then boom in 30 minutes they have successfully stolen a mans life savings.

This is by far the biggest flaw about bitcoin. One person knowing that you own large amounts of bitcoin is all that's needed to lose your life savings. In order to steal a persons stock market investments, it takes WEEKS and tons of in person verification making it virtually impossible and too risky for gangs to pursue. In order to steal a persons bitcoin it takes about 30 minutes.

If the entire world adopted Bitcoin and ditched fiat currency, the amount of robbings, hacks and killings would increase 100 times because it's so much easier for criminals to steal a man's life savings and get away with it.

All it takes is one bitter ex wife, one greedy son to lose everything. Bitcoin is not safe in this regard.

I get where you are coming from, and to be honest, but I think this is more about how people store their Bitcoin and not Bitcoin itself is unsafe. Because let's be honest here, once people know that you have money in any form, you have already become a target. Whether it's in Bitcoin, stocks, cash, gold or what so ever, they can still face risks like kidnapping or extortion. The danger is not about the asset, it's the exposure.

And seriously, you don't expect people who hold big amount to keep everything in one cold wallet sitting in a drawer. People use multisig wallets, time-locked wallets, decoy wallets and even a third-party custodial service which requires multiple confirmations before your funds can be move. So even if someone is trying to force you, the money still wouldn't move without another key or approval.

Plus, number one rule of having wealth is basically:   Don't let people know that you are wealthy. Once you start showing yourself up and down that's already the main problem. So yeah, your point makes sense, but I don't think it's fair to call it a "Bitcoin flaw." It's more like; if you are going to hold a value asset, then it requires a smarter security setup. The same way you would not keep millions in cash under your mattress or expensive jewelry on your kitchen table.

In short: The security method should match the value of what you are protecting. Bitcoin just needs a bit more thought in that area.

[Ivystar5]

In the end none is perfect but then one is far better than the other because responsibility and control is in he hands of the owner and no one, I mean no one is going to deny you access to your money other than you whereas the other you could die of starvation and hunger when you have your money in numbers lined up in the banks yet you would never be able to get hold of it when you need.

That's true, because if someone wants to withdraw a large amount of money from the bank in one day or within the same hour, the bank won't process it immediately if the amount is very large. However, if our own personal wallet contains a large amount of Bitcoin, we won't have that problem if we want to cash it all out all at once within the same hour. This is the fundamental difference between holding our own money and having it entrusted to another party, like a bank or something similar. Because the other party we entrust today is also eager to profit from that deposit over time, even if they don't directly tell their customers this.

If you are talking about withdrawing cash at a bank, that is correct because banks also do not usually keep large amounts of cash in reserve. If you want to withdraw a large amount of money, you need to notify the bank in advance and it will take 1-3 days. But you won't have any problem or waste too much time if you want to use or transfer money online. Only when the amount exceeds the limit according to your account level, they can contact you directly for verification, and this is just a security procedure and does not take much time.


Banks are not short of money and they will not stop us from withdrawing it all. However, withdrawal and transfer limits will depend on the account type and you can also increase the limits whenever you want.


Bitcoin gives us complete control over our money but banks are no less safe and they don't stop us if we want to withdraw our money.

Of course no bank will stop you from using your personal money but then the ability to use it exactly when you need to is what becomes the problem and the fact that it could be confisticated at anytime just either you have a difficulty with the bank and yet doesn't protect your funds but only helps people bear the consequences of not being able to handle their financial responsibility. it's one thing I know that people lack and are not even willing to do is take responsibility of their finances. however someone who loves freedom rather handles the control for themselves.

Bitcoin gives you all the accesses, control and total freedom but banks limit your actions because they don't operate alone instead government control their affairs.

[macson]

When owning Bitcoin, one needs to understand how best to safeguard it. If you know what you're holding is valuable, then don't go to risky places or let anyone know you have Bitcoin stored in your wallet.

If someone is smart and understands the responsibilities of owning Bitcoin, they will take steps to minimize the possibility of getting into trouble. Unless they genuinely don't care, then it's their own fault for taking it too lightly.

[coolcoinz]

It's a funny thread because OP thinks bitcoin is not safe because you can be kidnapped and robbed.

What about cash then? 90% of people hold some cash at home. Why aren't these people being kidnapped every day? Like in my country I don't remember last time I heard about a real kidnapping for ransom. I feel like there's one every 2-3 years, but even that feels like exaggeration.

You compare bitcoin to money in the bank. Let's say they decide to rob you and person a has all the money in the bank while person b has it in bitcoin. Do you really believe that if they attack person a and find out they have 0 money at home they'll just walk away? They're too invested in this so they will either demand you go to an ATM with them and withdraw cash, or they'll kill you. Sometimes both.

[Findingnemo]

When you don't want to take the responsibility of keeping your funds safe under your protection, then bitcoin may not be the one for you. Technically, the gang can't force you to spit the seed words in any other way apart from coming from you, so if you are that persistent and keep your wealth secured then they are not going anywhere, if you goes down then all the wealth will be going down with you.

Be your own bank comes with a lot of responsibilities, don't just go around and announce that I have x amount of bitcoin but I am a less risky target.

[suzanne5223]

Now if a gang wanted to steal person B's money it's a walk in the park. Once a gang gets in Person B's house, all they have to do is torture the victim until eventually the victim gives up his cold wallet and pin. Then all the gangs have to do is transfer the bitcoin to a different cold wallet and then boom in 30 minutes they have successfully stolen a mans life savings.

A cold storage wallet is for long term holding, and from my own knowledge, it is not applicable to keep it in a venue where you can easily access it with the inclusion of the wallet's private information.
Aside from that, there are some DONT's some Bitcoiners ignore, which literally lead to them being a target of physical attack. Most of it is already listed on this forum, unless the person is an influencer who cant do without doxing themselves.

This is by far the biggest flaw about bitcoin. One person knowing that you own large amounts of bitcoin is all that's needed to lose your life savings.

No. That's not a flaw, and I would have agreed with you if you said disadvantage.

If the entire world adopted Bitcoin and ditched fiat currency, the amount of robbings, hacks and killings would increase 100 times because it's so much easier for criminals to steal a man's life savings and get away with it.

All it takes is one bitter ex wife, one greedy son to lose everything. Bitcoin is not safe in this regard.

Bitcoin was not created as a means to ditch fiat, but it was created as something to complement it, and if there's an increase in Bitcoiner attacks, a solution will be introduced, which I believe some devs are already working on it just like we have some working on a quantum future attack that could happen. However, every Bitcoiners need to make security and privacy their priority to prevent physical attack.

[CryptoYar]

[...]

You are right that fear of being kidnapped to get Bitcoin is not true, noting that most people have cash or bank money, but are not robbed or kidnapped on daily basis, which shows that it is very rare and extreme crime, not only found with Bitcoin. You are right in saying that security of any money comes from not telling what you have. Also, you show that strong willed criminal will not give up when he cannot find money at home. He will force victim to withdraw money using ATM, which means that any money can end in dangerous situation when crime has been started.

[Minor Miner]

Many people say that Bitcoin isn’t safe because some individuals have been scammed, and such cases often make the news. However, what many don’t realize is that even more people have lost money through banks due to robberies, inside jobs, or illegal money transfers.

Of course, Bitcoin wallets can be vulnerable to hacking, but it can be avoided if we store them securely. In contrast, banks can make you a potential target of their evil plan since they know our assets.

Those who say bitcoin is not safe are ignorant about bitcoin but those who say banks are not safe are also completely wrong. If the banking industry were not safe and reliable, it would not have been able to survive for hundreds of years and still enjoy the trust of the public around the world today.
It can be said that both these systems are safe and both have their own disadvantages.

With Bitcoin, safety depends on how we manage and protect our wallets. We have direct control over it. But with banks, our security depends on how they operate and all we really have is trust in their system.

In my opinion, this is the only difference between the two systems. With bitcoin, our safety depends on ourselves, we have full control and responsibility for our assets. Meanwhile, depositing money in the bank means we are not given full power and will be completely dependent on a third party.

Depending on each person's preferences and thoughts, there will be separate choices. Each has its own pros and cons: "Pick your poison"

[X-ray]

When owning Bitcoin, one needs to understand how best to safeguard it. If you know what you're holding is valuable, then don't go to risky places or let anyone know you have Bitcoin stored in your wallet.

If someone is smart and understands the responsibilities of owning Bitcoin, they will take steps to minimize the possibility of getting into trouble. Unless they genuinely don't care, then it's their own fault for taking it too lightly.

Especially when the amount reaching millions, just hire body guard going out or something. The risk is also there going out with a lot of cash.

When money is stacking so much and there's concern about security. It's time to up the security.

[Pmalek]

A gang should never know what you have, regardless if it's bitcoin or something else of value. If they do, it means that you or someone very close to you have made big mistakes. Bitcoin isn't unique in this matter. If you hold big sums of cash in your home, art, gold, jewelry, rare & valuable items, basically anything not in custody with a third-party, those items can easily be stolen by thieves.

What you should do instead is not show off your wealth, don't talk about it, and don't be arrogant in public. Blend in, don't stick out.

[OpaNauts]

A gang should never know what you have, regardless if it's bitcoin or something else of value. If they do, it means that you or someone very close to you have made big mistakes. Bitcoin isn't unique in this matter. If you hold big sums of cash in your home, art, gold, jewelry, rare & valuable items, basically anything not in custody with a third-party, those items can easily be stolen by thieves.

What you should do instead is not show off your wealth, don't talk about it, and don't be arrogant in public. Blend in, don't stick out.

Thats correct. The problem isn't Bitcoin; the problem is having thousands of dollars worth of anything that isn't locked up safely by a third party. If you tell a gang you have a massive diamond ring or a suitcase of cash, you're equally in trouble.

[coolcoinz]

[...]

You are right that fear of being kidnapped to get Bitcoin is not true, noting that most people have cash or bank money, but are not robbed or kidnapped on daily basis, which shows that it is very rare and extreme crime, not only found with Bitcoin. You are right in saying that security of any money comes from not telling what you have. Also, you show that strong willed criminal will not give up when he cannot find money at home. He will force victim to withdraw money using ATM, which means that any money can end in dangerous situation when crime has been started.

Of course, because it doesn't really matter what you own, gold, fiat money, bitcoin... all that matters is if your security is tight and whether you can protect your wealth. I know cases where people were forced to sign away their rights to property. The only problem with bitcoin is that once you send it becomes almost impossible to get it back, but could you really get back fiat money sent to a scammer's account? That account will be opened by some drunkard or drug addict in his name and he'll withdraw the money in cash hours after it's deposited.

[Z390]

A gang should never know what you have, regardless if it's bitcoin or something else of value. If they do, it means that you or someone very close to you have made big mistakes. Bitcoin isn't unique in this matter. If you hold big sums of cash in your home, art, gold, jewelry, rare & valuable items, basically anything not in custody with a third-party, those items can easily be stolen by thieves.

What you should do instead is not show off your wealth, don't talk about it, and don't be arrogant in public. Blend in, don't stick out.

Thats correct. The problem isn't Bitcoin; the problem is having thousands of dollars worth of anything that isn't locked up safely by a third party. If you tell a gang you have a massive diamond ring or a suitcase of cash, you're equally in trouble.

Banks have their problems too and I guess people are already used to letting banks have their ways, banks knows everything about you, how is this not a problem to many people?
No one knows that you have Bitcoin and it can remain the same forever unless you open up to people that you have some Bitcoin. Banks can betray you by revealing your worth to any powerful authority that request for it but never the same with Bitcoin.
With banks = putting your trust and money in the hands of people, they take the responsibility of your money and have access to it all the time.

With Bitcoin = You are a powerful being on your own, no one knows your worth and no addresses is needed to own one, it is you against the world, you remain powerful if you keep your mouth close.

The only thing that can betray a bitcoin holder is his own mouth.

[cr1776]

Keep your cold storage device in a safe deposit at the bank if you are that concerned.  Plenty of people do that.  Or they use multi-sig and have the sigs spread out between banks in different areas to ensure that it is nearly impossible to lose access.  And you are losing 2%-50% (or more) in fiat every year without doing anything from the fiat gangsters too.

While I do love and am fascinated by the concept of bitcoin, I have one HUGE problem with bitcoin that nobody seems to talk about: If you hold bitcoin and a single person finds out about your wealth, you are at risk of losing everything.

For example say we have person A and person B. Person A has all their wealth invested in the stock market and person B has all his wealth invested in Bitcoin. Both are extremely wealthy and a gang knows about the wealth of both guys.

If a gang wanted to steal Person A's money, they would have to kidnap the victim and then force him to sell his stocks. Then they would have to wait 2 whole business days for the funds to settle before withdrawing out of a brokerage account. Then once the funds hit the victim's chequing account they would only be able to send a limited amount of money before reaching a sending limit of like 3000-5000. The only way for a gang to steal a large amount of money would be if they forced the victim to walk into a PHYSICAL bank and request a big withdrawal which no gang would risk. The way banks are set up it takes such a long time to withdraw large amounts of money so for gangs it's virtually impossible to steal a persons life savings through stock market investments.

Now if a gang wanted to steal person B's money it's a walk in the park. Once a gang gets in Person B's house, all they have to do is torture the victim until eventually the victim gives up his cold wallet and pin. Then all the gangs have to do is transfer the bitcoin to a different cold wallet and then boom in 30 minutes they have successfully stolen a mans life savings.

This is by far the biggest flaw about bitcoin. One person knowing that you own large amounts of bitcoin is all that's needed to lose your life savings. In order to steal a persons stock market investments, it takes WEEKS and tons of in person verification making it virtually impossible and too risky for gangs to pursue. In order to steal a persons bitcoin it takes about 30 minutes.

If the entire world adopted Bitcoin and ditched fiat currency, the amount of robbings, hacks and killings would increase 100 times because it's so much easier for criminals to steal a man's life savings and get away with it.

All it takes is one bitter ex wife, one greedy son to lose everything. Bitcoin is not safe in this regard.

[Btcslop]

A gang should never know what you have, regardless if it's bitcoin or something else of value. If they do, it means that you or someone very close to you have made big mistakes. Bitcoin isn't unique in this matter. If you hold big sums of cash in your home, art, gold, jewelry, rare & valuable items, basically anything not in custody with a third-party, those items can easily be stolen by thieves.

What you should do instead is not show off your wealth, don't talk about it, and don't be arrogant in public. Blend in, don't stick out.

I can sense your awareness, because nowadays if anyone has a large amount of money or hidden wealth and a third party finds out, it can easily be stolen. Being cautious is extremely important. I believe it is wise not to display your financial assets publicly, to avoid arrogance, and to live like an ordinary person.

[fuguebtc]

Banks have their problems too and I guess people are already used to letting banks have their ways, banks knows everything about you, how is this not a problem to many people?
No one knows that you have Bitcoin and it can remain the same forever unless you open up to people that you have some Bitcoin. Banks can betray you by revealing your worth to any powerful authority that request for it but never the same with Bitcoin.
With banks = putting your trust and money in the hands of people, they take the responsibility of your money and have access to it all the time.

With Bitcoin = You are a powerful being on your own, no one knows your worth and no addresses is needed to own one, it is you against the world, you remain powerful if you keep your mouth close.

The only thing that can betray a bitcoin holder is his own mouth.

Of course, banks have problems too and that's why bitcoin came into existence and they chose bitcoin over banks. But they are not so bad and obnoxious that they can harm you if you obey the law.
If you are not involved in money laundering, crime or drug trafficking, terrorist financing. There is no reason for a bank to freeze your money or any agency to interfere with your assets.

Additionally, bitcoin was created to be a currency, making us our own banks. But in reality, we don't really use bitcoin for those purposes. We just use it to make profit and eventually convert it to fiat.
We don't actually use bitcoin to protect our money from banks like we claim.

[Pmalek]

Thats correct. The problem isn't Bitcoin; the problem is having thousands of dollars worth of anything that isn't locked up safely by a third party.

I wasn't advocating for keeping your wealth with a third party. Having thousands of dollars at home isn't the problem just like having an expensive painting on your wall isn't. After all, what purpose does it serve locked up in some dark room if you can't look at it and admire it. The issue is letting other people know what you have and where. They have no business knowing about it, and you can never be sure who they will tell and what kind of ideas people will come up with. So keep your secrets to yourself and share them only with those who need to know.

[Bitcoin Smith]

Thats correct. The problem isn't Bitcoin; the problem is having thousands of dollars worth of anything that isn't locked up safely by a third party.

I wasn't advocating for keeping your wealth with a third party. Having thousands of dollars at home isn't the problem just like having an expensive painting on your wall isn't. After all, what purpose does it serve locked up in some dark room if you can't look at it and admire it. The issue is letting other people know what you have and where. They have no business knowing about it, and you can never be sure who they will tell and what kind of ideas people will come up with. So keep your secrets to yourself and share them only with those who need to know.

Well, if you are rich then it's hard to hide from others, right.

Becoming wealthy itself a long process but once someone reaches that position then they should be careful with who they are sharing details and should also invest money on their security whether it's a weapon or dedicated bodyguards depends on how rich they are.

OP's argument is like I am afraid of robbers so I am giving access of my wealth to a big robber who steals from everyone.