If @coinbase goes bankrupt, most bitcoiners lose all their funds.
How is this better than a bank ?
In practice, is much more centralized than the current banking system. Most wallets & transactions are handled off-line by a cartel of private companies.

If your #wallet provider goes offline but you've saved #privateKeys, access funds after #timelock has expired.

From what we know, they all do this.

The #timelock locks funds for an amount of time, eg. 6 months. Until a timelock expires no one can access the funds unless the 3rd-party signed-off on a successful 2FA check.

After the timelock expires however you can use the funds like you normally would, ie. without the third party.

In terms of (1/2)


@FranckLeroy @coinbase
(2/2)… leaving your funds on an #exchange, this is not strictly a #cryptocurrency problem.

It is drummed into anyone researching this stuff, "Not your keys? Not your #bitcoin." Or don't leave your funds on an exchange.

Thanks for thinking about these issues as they are so important.

@FranckLeroy @coinbase
CORRECTION: "unless the 3rd-party **signs**-off on a successful 2FA check." (Present tense)

@dsfgs @coinbase Sure it is. The use of a blockchain makes it difficult for most people. and the riduculous technial limitation (slow / high fees) push toward centralization and off-chain usage. This is the failure of Bitcoin itself.

A concern for all systems that are large, fiat takes the cake. Bitcoin has is designed to resist centralisation.

Fee aren't high. Especially if we think of bitcoin for storing value over years to decades.

So maybe every ten years or so one will need to #atomicSwap (read:convert) bitcoin to something with greater #liquidity. That space is evolving. Some say LTC, BSH, Zcash even Monero. These more liquid layers will ultimately be what is used day-to-day.


@FranckLeroy @coinbase
That is how we see it being used in the future anyway. Its a future that is perhaps 5-20 years away however.

For the time being you can do the quarterly transfer to your local independent grocer with it, because it's still in its early days.

But looking into the future, bitcoin is not something to use on a yearly basis, no. The same way you wouldn't dip into the "Savings" account everyday, we put the word "Savings" in quotes for a reason.


Sign in to participate in the conversation

This is a brand new server run by the main developers of the project as a spin-off of 🐘 It is not focused on any particular niche interest - everyone is welcome as long as you follow our code of conduct!