Custody problem solved: centralized and insured

[PERtua]

I believe the key question is what is being insured and the word insurance is still a comforting word. Not all customers' Bitcoins are necessarily covered by an exchange with an insurance policy. Coverage, exclusions. Limits and who's covered by the policy are important. There's also a distinction between insurance in case of a security compromise versus insurance in case of insolvency or fraud. For me it's not just self custody vs insured custody. Whether the custodian can demonstrate its reserves, separation of customer assets. Security measures and the extent of coverage under its existing insurance plan. Those details may be more important than the term insured.

[legiteum]

And this has not just been due to their own direct actions, but the failure of self-custody products are well.

This is misleading.
Most of the money lose throug self custody are due to the direct action, or inaction, of the person. Only a few of them have been a result of the self custody product, like the ColdCard case.

I think the very sentence you quoted there made the point clear. I assume the majority of losses due to self-custody are from and individual's theft or mistake. I didn't imply that products are the main culprit.

I wish I was making this up, but just yesterday, my dad called me, and he was with my younger sister. They complained about how $500 was withdrawn from my sister's account as far back as March of this year, and she had no idea that kind of transaction took place. She wouldn't have known this if she had not requested the statement of account. The bank is claiming she made the transaction and has refused to show further proof.
Now there is going to be a lot of back and forth with the bank if that money is to be recovered.

Now imagine this was a large sum.

If it was a large sum then they wouldn't try it because they know it would lead to costly litigation.

Of course solving this problem would involve the legislation championed by a certain crypto boogieman ("boogiewoman"?) named Elizabeth Warren, who gave individual consumers power to fight back against small-dollar infractions like this. For a while US consumers had real recourse when banks pulled stuff like that, but Trump and the Republicans rolled it all back and if you get a mystery fee of $30 on your next bill there's not a thing you can do about it.

(Of course in the absolutely unregulated world of crypto, you have even less recourse).

My point is, don't make it seem like once your funds are insured, you have nothing to worry about.

Insurance isn't a panacea, but it reduces stress by quite a bit.

[Outhue]

OP are you from a developing country? Because insurance companies in developing countries operates differently, they are more corrupt than those in the western worlds, I've heard alot about insurance frauds and schemes in America alone but do not compare to those in developing country, they are more gruesome and bloody.

Also going for insurance protection means exiting crypto space completely, no insurance company what to insured Bitcoin or crypto here probably because of it's volatility and other, but that's not even why I would worry the most, insurance company knowing that you have Bitcoin is not safe, do you know how many people have been killed by insurance company so that they can take over their belongings?in my country the number is high.

[legiteum]

OP are you from a developing country? Because insurance companies in developing countries operates differently, they are more corrupt than those in the western worlds, I've heard alot about insurance frauds and schemes in America alone but do not compare to those in developing country, they are more gruesome and bloody.

Nope, I'm from the USA, where we supply about 99% of Bitcoin's market cap with our consumer's investments .

I agree that developing countries have a different set of realities, and Bitcoin can be an escape from that. But if that's the only true use case for Bitcoin, it's a pretty narrow one from the standpoint of investment.

Don't get me wrong, I'm glad you have at least something that will make your life a little easier in the face of a terrible situation.