[2014-09-05] Bitcoin, The Cryptography-based Currency Continues To Rely On Banks

[patricktim]

http://www.forbes.com/sites/ericxlmu/2014/09/04/bitcoin-the-cryptography-based-currency-continues-to-rely-on-banks-for-security/

Reddit’s r/bitcoin is a popular forum where BTC enthusiasts shared news links and anti-establishment jokes. The site was so influential among the community that a recent book about Bitcoin called The Anatomy of a Money-like Informational Commodity discussed the viability of using the number of registered members of the forum as a way to gauge the market sentiment.

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[odolvlobo]

In this story, the reliance is on the safe deposit box, and the irony is that despite the claim that Bitcoin eliminates all need for banks, banks are still needed for cold storage.

Actually, there is very little irony. If cold storage is all that banks are good for in a Bitcoin world, then 99.9% of all the banks will go out of business.

I don't subscribe the the belief that Bitcoin eliminates all need for banks. After all, some people will still want banks to hold their bitcoins for them even if it is not absolutely necessary. People will also want to get loans from banks.

[notthematrix]

there aree way better ways te store your keys!
Not in a safe but encrypted at multiple places ,,, you need to remember your passphrase....
save it like a  insurance file.

[Whitehouse]

I don't think it relies on them at all, but they're going to be used together for the considerable future.

The thieves simply threw a rock through his (the author’s father’s) back sliding glass window, rummaged around in the house until they found the safe and dom hemingway’d it right off of the foundation it was bolted onto. Inside of his safe was an uncommonly large number of bitcoins (he is an early adopter) on a non password protected paper wallet.

Umm, why were they not password protected and why did he not have backups? Had he kept a back up on a password protected wallet under his bed then he'd be fine.

[CoinMode]

The thieves simply threw a rock through his (the author’s father’s) back sliding glass window, rummaged around in the house until they found the safe and dom hemingway’d it right off of the foundation it was bolted onto. Inside of his safe was an uncommonly large number of bitcoins (he is an early adopter) on a non password protected paper wallet.

You dun goofed. I backtraced it to the cyber-police.