Is crypto safer than a bank depost? Not necessarily.
You transact cryptographically, and the anonymity makes it difficult for people to target you. But the actual real-world security would be about on par with any bank, in terms of keeping your funds safe. It's really up to you to keep your passphrases, pins, and wallets safe, and to watch out for scams. That's really no different than using a credit card, though there is less oversight on crypto in most cases.
False. If you lose your credit card or its PIN bank will still give access to your money. So in case you're comparing to crypto hardware wallets, in that respect the hardware wallet is much less secure since it lack the back-up access in case something happens.
Whereas if you're comparing to holding your money in a crypto bank, then the real bank is much more secure holder of your money because there's a lot of government oversight and regulation to ensure that the bank doesn't run into problems that would cost you your money.
Sort of. Most banks only insure your funds up to 250K in the US. Not sure about other countries, with some loopholes depending on the depositers.
But there is a little misunderstanding here with my comparison. A bank account is basically the equivalent to a custodial wallet. Everything is held at the discretion of the wallet holder, which is an online wallet.
Some hardware wallets do allow for recovery of your assets, IF you have your recovery phrase. Even if you lose your wallet it's possible to recover the assets in many cases. If people forget their pin or passphrase and lose their hardware wallet, yeah in that case they're pretty much out of luck.
But if you lose 20 million dollars from your bank account due to theft or fraud, and you have an insured account, it may cover only 250k, or it could cover substantially more depending on the bond insurance your bank holds, but anything you end up getting after the insured amount is at the discretion of the bank.
In this particular case with Axie, it's somewhat similar that it's at the discretion of axie to reimburse players, but there is no insurance covering the accounts. (Axie may be insured, I don't know) That's not to say you, the player, can't have your crypto assets insured. You can.
But most people don't, because most people in crypto still don't really understand what they're buying into, and many of them are lightweights who wouldn't require the added cost the insurance would cover.
Most companies these days should also have some sort of cybersecurity insurance. Can't imagine most businesses running without it, no matter if it's a crypto business or an electronics store.
Since there is no governance right now, and there is no "crypto bank" but instead a mishmash of thousands of different wallets on hundreds of different services, there's no way to really have oversight, until governments regulate it.
But looping back around, is it safer to be part of a bank? I still go with "not necessarily". People are getting scammed out of money from their bank every day, and not all of it comes back to them because they are the ones falling for the scams. Most personal losses of crypto are similar.
I think many people confuse or lump together the safety/security of their bank vs a crypto wallet and the stability of something like the USD vs a Crypto currency.
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Sort of. Most banks only insure your funds up to 250K in the US. Not sure about other countries, with some loopholes depending on the depositers.
But there is a little misunderstanding here with my comparison. A bank account is basically the equivalent to a custodial wallet. Everything is held at the discretion of the wallet holder, which is an online wallet.
Some hardware wallets do allow for recovery of your assets, IF you have your recovery phrase. Even if you lose your wallet it's possible to recover the assets in many cases. If people forget their pin or passphrase and lose their hardware wallet, yeah in that case they're pretty much out of luck.
But if you lose 20 million dollars from your bank account due to theft or fraud, and you have an insured account, it may cover only 250k, or it could cover substantially more depending on the bond insurance your bank holds, but anything you end up getting after the insured amount is at the discretion of the bank.
In this particular case with Axie, it's somewhat similar that it's at the discretion of axie to reimburse players, but there is no insurance covering the accounts. (Axie may be insured, I don't know) That's not to say you, the player, can't have your crypto assets insured. You can.
But most people don't, because most people in crypto still don't really understand what they're buying into, and many of them are lightweights who wouldn't require the added cost the insurance would cover.
Most companies these days should also have some sort of cybersecurity insurance. Can't imagine most businesses running without it, no matter if it's a crypto business or an electronics store.
Since there is no governance right now, and there is no "crypto bank" but instead a mishmash of thousands of different wallets on hundreds of different services, there's no way to really have oversight, until governments regulate it.
But looping back around, is it safer to be part of a bank? I still go with "not necessarily". People are getting scammed out of money from their bank every day, and not all of it comes back to them because they are the ones falling for the scams. Most personal losses of crypto are similar.
That 250k limit is only per account ownership type at each bank, not per person. Those ownership types include single accounts, joint accounts, certain trust accounts, and some retirement accounts, among others. You can get a lot more than 250k covered by standard FDIC insurance, you just have to spread it across more than one account type and/or bank. And this benefit is in addition to any insurance your bank may provide beyond that amount.
I'd like to reiterate that I believe banks will begin incorporating blockchain technology behind the scenes to add layers of security, but I think they will remove the entire custodial wallet piece from the consumers eyes and essentially make it behave just like it does now for the end user, regulations and all.
Sort of. Most banks only insure your funds up to 250K in the US. Not sure about other countries, with some loopholes depending on the depositers.
But there is a little misunderstanding here with my comparison. A bank account is basically the equivalent to a custodial wallet. Everything is held at the discretion of the wallet holder, which is an online wallet.
Some hardware wallets do allow for recovery of your assets, IF you have your recovery phrase. Even if you lose your wallet it's possible to recover the assets in many cases. If people forget their pin or passphrase and lose their hardware wallet, yeah in that case they're pretty much out of luck.
But if you lose 20 million dollars from your bank account due to theft or fraud, and you have an insured account, it may cover only 250k, or it could cover substantially more depending on the bond insurance your bank holds, but anything you end up getting after the insured amount is at the discretion of the bank.
In this particular case with Axie, it's somewhat similar that it's at the discretion of axie to reimburse players, but there is no insurance covering the accounts. (Axie may be insured, I don't know) That's not to say you, the player, can't have your crypto assets insured. You can.
But most people don't, because most people in crypto still don't really understand what they're buying into, and many of them are lightweights who wouldn't require the added cost the insurance would cover.
Most companies these days should also have some sort of cybersecurity insurance. Can't imagine most businesses running without it, no matter if it's a crypto business or an electronics store.
Since there is no governance right now, and there is no "crypto bank" but instead a mishmash of thousands of different wallets on hundreds of different services, there's no way to really have oversight, until governments regulate it.
But looping back around, is it safer to be part of a bank? I still go with "not necessarily". People are getting scammed out of money from their bank every day, and not all of it comes back to them because they are the ones falling for the scams. Most personal losses of crypto are similar.
That 250k limit is only per account ownership type at each bank, not per person. Those ownership types include single accounts, joint accounts, certain trust accounts, and some retirement accounts, among others. You can get a lot more than 250k covered by standard FDIC insurance, you just have to spread it across more than one account type and/or bank. And this benefit is in addition to any insurance your bank may provide beyond that amount.
I'd like to reiterate that I believe banks will begin incorporating blockchain technology behind the scenes to add layers of security, but I think they will remove the entire custodial wallet piece from the consumers eyes and essentially make it behave just like it does now for the end user, regulations and all.
If you have millions of dollars to invest, there are better investments available than FDIC-insured bank deposits. Banks are great for short-term liquidity, but not where you want to park a bunch of money and leave it for decades.
I'd like to reiterate that I believe banks will begin incorporating blockchain technology behind the scenes to add layers of security, but I think they will remove the entire custodial wallet piece from the consumers eyes and essentially make it behave just like it does now for the end user, regulations and all.
Almost exactly what the bank I work for is doing, (I think) along with offering a number of services to help clients to better manage their portfolio.
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"This is the most intelligent, well qualified and articulate response to a post I have ever seen on these forums. It's a shame most people here won't have the attention span to read past the second line." - Anon
You put real money into someone else wallet and get fake money in return?
More like you and others "committed" your Ethereum into making transactions through Ronin network because actually making a transaction could take half an hour to process and cost $20 in transaction fees.
Then you and others through Ronin "committed" to eventually transfer that Ethereum to each other, but it was never written to Ethereum network because of how expensive it would have been.
Later Ronin network - under control of the hacker - informed that final result of all those transactions was transferring all the committed Ethereum to hacker and paid the fees to have it written to Ethereum network. At that point it became the hacker's money.
You put real money into someone else wallet and get fake money in return?
More like you and others "committed" your Ethereum into making transactions through Ronin network because actually making a transaction could take half an hour to process and cost $20 in transaction fees.
Then you and others through Ronin "committed" to eventually transfer that Ethereum to each other, but it was never written to Ethereum network because of how expensive it would have been.
Later Ronin network - under control of the hacker - informed that final result of all those transactions was transferring all the committed Ethereum to hacker and paid the fees to have it written to Ethereum network. At that point it became the hacker's money.
Just trying to live long enough to play a new, released MMORPG, playing New Worlds atm
Fools find no pleasure in understanding but delight in airing their own opinions. Pvbs 18:2, NIV
Don't just play games, inhabit virtual worlds™
"This is the most intelligent, well qualified and articulate response to a post I have ever seen on these forums. It's a shame most people here won't have the attention span to read past the second line." - Anon
You put real money into someone else wallet and get fake money in return?
More like you and others "committed" your Ethereum into making transactions through Ronin network because actually making a transaction could take half an hour to process and cost $20 in transaction fees.
Then you and others through Ronin "committed" to eventually transfer that Ethereum to each other, but it was never written to Ethereum network because of how expensive it would have been.
Later Ronin network - under control of the hacker - informed that final result of all those transactions was transferring all the committed Ethereum to hacker and paid the fees to have it written to Ethereum network. At that point it became the hacker's money.
Gaaah...makes my head hurt...
You are obviously a moron who doesn't understand the greatness of crypto.
Luddite, boomer, curmudgeon .... just die already and save oxygen for the people smart enough to realize crypo is so much more secure than property, banks, physical gold.
Well I'll be happy to "hold" any free cash people want to get rid of so they have more "room" in their wallets.
Just trying to live long enough to play a new, released MMORPG, playing New Worlds atm
Fools find no pleasure in understanding but delight in airing their own opinions. Pvbs 18:2, NIV
Don't just play games, inhabit virtual worlds™
"This is the most intelligent, well qualified and articulate response to a post I have ever seen on these forums. It's a shame most people here won't have the attention span to read past the second line." - Anon
You put real money into someone else wallet and get fake money in return?
More like you and others "committed" your Ethereum into making transactions through Ronin network because actually making a transaction could take half an hour to process and cost $20 in transaction fees.
Then you and others through Ronin "committed" to eventually transfer that Ethereum to each other, but it was never written to Ethereum network because of how expensive it would have been.
Later Ronin network - under control of the hacker - informed that final result of all those transactions was transferring all the committed Ethereum to hacker and paid the fees to have it written to Ethereum network. At that point it became the hacker's money.
Gaaah...makes my head hurt...
You are obviously a moron who doesn't understand the greatness of crypto.
Luddite, boomer, curmudgeon .... just die already and save oxygen for the people smart enough to realize crypo is so much more secure than property, banks, physical gold.
Well I'll be happy to "hold" any free cash people want to get rid of so they have more "room" in their wallets.
Am I doing it right?
No, not at all. You have to promise that they'll get something for letting you hold their money, such as getting a lot more money back when they take it out, or NFTs, or an opportunity to watch crypto videos with people who use a bunch of mysterious buzzwords that may or may not actually mean anything. Otherwise, why would people let you hold their money instead of someone who makes dubious promises like that?
I do think digital currencies will eventually integrate blockchain technology in a few ways. For one, users (all people), will eventually have their DNA (genetic identity) linked to a blockchain token through something similar to what we call NFTs only the registry will be governmental and/or global and not some third party website.
Each individual will also have a currency wallet also defined and linked to a blockchain token. The wallet itself will have a value, but I don't think the actual value of the wallet account will be blockchain ledger based. That is, there won't be speculative crypto tokens as the currency.
Blockchain itself is just an immutable ledger technology and there are a lot of ways that can be leveraged or implemented.
Wallets won't be able to be stolen in the traditional sense, but I do believe genetic spoofing will become a thing. Of course one won't be able to buy or sell items without this blockchain identity connected to their DNA description.
I know it sounds crazy but I think a future like you describe is increasingly likely. And scary.
This will be reduced to an implant about the size of a BB, which monitors and connects you to Skynet. You know, like the UFO implants.
Comments
All time classic MY NEW FAVORITE POST! (Keep laying those bricks)
"I should point out that no other company has shipped out a beta on a disc before this." - Official Mortal Online Lead Community Moderator
Proudly wearing the Harbinger badge since Dec 23, 2017.
Coined the phrase "Role-Playing a Development Team" January 2018
"Oddly Slap is the main reason I stay in these forums." - Mystichaze April 9th 2018
But there is a little misunderstanding here with my comparison. A bank account is basically the equivalent to a custodial wallet. Everything is held at the discretion of the wallet holder, which is an online wallet.
Some hardware wallets do allow for recovery of your assets, IF you have your recovery phrase. Even if you lose your wallet it's possible to recover the assets in many cases. If people forget their pin or passphrase and lose their hardware wallet, yeah in that case they're pretty much out of luck.
But if you lose 20 million dollars from your bank account due to theft or fraud, and you have an insured account, it may cover only 250k, or it could cover substantially more depending on the bond insurance your bank holds, but anything you end up getting after the insured amount is at the discretion of the bank.
In this particular case with Axie, it's somewhat similar that it's at the discretion of axie to reimburse players, but there is no insurance covering the accounts. (Axie may be insured, I don't know) That's not to say you, the player, can't have your crypto assets insured. You can.
https://www.lloyds.com/about-lloyds/media-centre/press-releases/lloyds-launches-new-cryptocurrency-wallet-insurance-solution-for-coincover
https://www.elliptic.co/
But most people don't, because most people in crypto still don't really understand what they're buying into, and many of them are lightweights who wouldn't require the added cost the insurance would cover.
Most companies these days should also have some sort of cybersecurity insurance. Can't imagine most businesses running without it, no matter if it's a crypto business or an electronics store.
Since there is no governance right now, and there is no "crypto bank" but instead a mishmash of thousands of different wallets on hundreds of different services, there's no way to really have oversight, until governments regulate it.
But looping back around, is it safer to be part of a bank? I still go with "not necessarily". People are getting scammed out of money from their bank every day, and not all of it comes back to them because they are the ones falling for the scams. Most personal losses of crypto are similar.
All time classic MY NEW FAVORITE POST! (Keep laying those bricks)
"I should point out that no other company has shipped out a beta on a disc before this." - Official Mortal Online Lead Community Moderator
Proudly wearing the Harbinger badge since Dec 23, 2017.
Coined the phrase "Role-Playing a Development Team" January 2018
"Oddly Slap is the main reason I stay in these forums." - Mystichaze April 9th 2018
I'd like to reiterate that I believe banks will begin incorporating blockchain technology behind the scenes to add layers of security, but I think they will remove the entire custodial wallet piece from the consumers eyes and essentially make it behave just like it does now for the end user, regulations and all.
"True friends stab you in the front." | Oscar Wilde
"I need to finish" - Christian Wolff: The Accountant
Just trying to live long enough to play a new, released MMORPG, playing New Worlds atm
Fools find no pleasure in understanding but delight in airing their own opinions. Pvbs 18:2, NIV
Don't just play games, inhabit virtual worlds™
"This is the most intelligent, well qualified and articulate response to a post I have ever seen on these forums. It's a shame most people here won't have the attention span to read past the second line." - Anon
This isn't a signature, you just think it is.
Then you and others through Ronin "committed" to eventually transfer that Ethereum to each other, but it was never written to Ethereum network because of how expensive it would have been.
Later Ronin network - under control of the hacker - informed that final result of all those transactions was transferring all the committed Ethereum to hacker and paid the fees to have it written to Ethereum network. At that point it became the hacker's money.
"True friends stab you in the front." | Oscar Wilde
"I need to finish" - Christian Wolff: The Accountant
Just trying to live long enough to play a new, released MMORPG, playing New Worlds atm
Fools find no pleasure in understanding but delight in airing their own opinions. Pvbs 18:2, NIV
Don't just play games, inhabit virtual worlds™
"This is the most intelligent, well qualified and articulate response to a post I have ever seen on these forums. It's a shame most people here won't have the attention span to read past the second line." - Anon
Am I doing it right?
"True friends stab you in the front." | Oscar Wilde
"I need to finish" - Christian Wolff: The Accountant
Just trying to live long enough to play a new, released MMORPG, playing New Worlds atm
Fools find no pleasure in understanding but delight in airing their own opinions. Pvbs 18:2, NIV
Don't just play games, inhabit virtual worlds™
"This is the most intelligent, well qualified and articulate response to a post I have ever seen on these forums. It's a shame most people here won't have the attention span to read past the second line." - Anon
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2024: 47 years on the Net.