Latest Bitcoin Craze? Actual Bank Vaults

grifferz

full member

Activity: 154

Merit: 100

Quote from: IrishFutbol on March 14, 2014, 08:52:03 AM

They are insured by a California insurance company. And under US law, even if that insurer declares bankruptcy, any other insurance company in the state of CA is required to make up the loss. So a Xapo bankruptcy wouldn't result in a Mt. Gox disaster.

The insurance company will not be insuring the value of the bitcoins. If you think they will be then I would ask you to get a statement to that effect from their insurance company.

In my opinion the most likely outcome of a bitcoin-holding company going bankrupt in any jurisdiction right now is for the state-appointed administrator and any insurance company to completely ignore bitcoins as a valid asset.

So I don't think a promise of having insurance is worth anything and would agree with those who say this isn't much different to letting a contemporary bitcoin exchange be your bank.

QuestionAuthority

legendary

Activity: 2156

Merit: 1393

You lead and I'll watch you walk away.

I see the next great scam in the making. It's a beautiful thing, like watching a baby being born. rofl

Lethn

legendary

Activity: 1540

Merit: 1000

Bitcoin users don't need a fucking bank, get a laptop, store the coins offline and then put it in a safe, that's what I'm going to do when I have enough coins to worry about.

kooke

sr. member

Activity: 448

Merit: 250

Bitcoin super-duper-mega-ultra-hyper-node

Quote from: IrishFutbol on March 14, 2014, 08:52:03 AM

Quote from: GigaCoin on March 14, 2014, 08:49:59 AM

why should i trust xapo with my Bitcoins, how would they be any different from let's say someone who kept coins in MtGox. Sure big talk about security, but say they declare bankruptcy then what? No thanks

If im putting it in a valut, might as well put it in my local coop bank vault.

private cold storage with multiple backups is the best solution.

They are insured by a California insurance company. And under US law, even if that insurer declares bankruptcy, any other insurance company in the state of CA is required to make up the loss. So a Xapo bankruptcy wouldn't result in a Mt. Gox disaster.

I still wouldn't trust them. Just look at all the gold that the US government has been storing for Germany Cheesy

IrishFutbol

member

Activity: 70

Merit: 10

Quote from: GigaCoin on March 14, 2014, 08:49:59 AM

why should i trust xapo with my Bitcoins, how would they be any different from let's say someone who kept coins in MtGox. Sure big talk about security, but say they declare bankruptcy then what? No thanks

If im putting it in a valut, might as well put it in my local coop bank vault.

private cold storage with multiple backups is the best solution.

They are insured by a California insurance company. And under US law, even if that insurer declares bankruptcy, any other insurance company in the state of CA is required to make up the loss. So a Xapo bankruptcy wouldn't result in a Mt. Gox disaster.

GigaCoin

sr. member

Activity: 308

Merit: 251

Giga

why should i trust xapo with my Bitcoins, how would they be any different from let's say someone who kept coins in MtGox. Sure big talk about security, but say they declare bankruptcy then what? No thanks

If im putting it in a valut, might as well put it in my local coop bank vault.

private cold storage with multiple backups is the best solution.

IrishFutbol

member

Activity: 70

Merit: 10

For people who don't have the WSJ:

http://www.bloomberg.com/news/2014-03-13/benchmark-backs-bitcoin-storage-provider-xapo.html

Though this seems like it will be a failure. It's essentially going to be a bank that offers you a negative return on your deposit. As Xapo cannot lend funds and generate a profit like a normal bank, their only source of income will be charging the customers to secure their BTC. I really don't see that many people handing their BTC over to some third party AND paying a fee on top of that, as opposed to just holding their coins themselves.

the_poet

legendary

Activity: 1137

Merit: 1035

Bitcoin accepted here

Startup Xapo Raises $20 Million to Store Digital Currency Underground

http://online.wsj.com/news/articles/SB10001424052702303546204579437462303753346

Topic: Latest Bitcoin Craze? Actual Bank Vaults (Read 3146 times)