Topic: My Question to Crypto users about its security - page 3. (Read 597 times)

Of course it was discussed many times in this forum community.
 First off, we are very aware about the risks of choosing cryptocurrency. Crypto exchanges vs BANKS. But I supposed you also know about that centralized and decentralized platform.  We can't also deny the fact that there are pros and cons of each specific fields.
 Digital payments are already been adopted by many that is why most are very convinced that cryptocurrency is the future. But that doesn't literally means we can disregard centralized institutions likr banks.

I don't think he meant to say that bitcoin is perfect, bitcoin is flawed in many ways, but just like bitcoin right now is much better than it was a few years ago. This process will continue to make bitcoin better down the line.

Though I agree that OP is wrong specially in certain scenarios, like say: quantum tech goes mainstream, that's a inmediate bitcoin killer, we'd need to switch to a quantum resistant blockchain, there are many more but this one particularly came to mind.

There are escrow services for that similar to leaving a last will if you die or if you dont trust escrow services you can just pay for services like mailshake or zoho to send an email to your family or someone significant to you and schedule that email.
Surely, this is better than having to through a lawyer and pay him millions.

About stolen crypto money that you can't trace is entirely incorrect, you can also file a complaint because Bitcoin is pseudonymous you can file a case and trace those BTC.

There have been many threads that discuss about what if the owner of bitcoin dies and who will manage it. Bitcoin can be inherited to anyone you trust or to your family by providing access to a private key in the form of paper, hardware wallet or in the form of notes that you make yourself. the idea of ​​inheritance can be read on the link provided by @cryptomaniac_xxx.
on the link you will find a more detailed discussion about the legacy of bitcoin.


For security problems you compare with banks. Certainly will be very different. The bank is fully regulated by the government so that it will be easier to conduct an investigation when the money in your account is stolen. While Bitcoin is a digital currency that is not regulated by anyone and transaction history on bitcoin will also never be deleted. The security of digital currency is entirely in its users, Bitcoin has many advantages but also has a weakness. Just like a bank. There is no perfect system.

Like in that movie Enemy of the State where the main character is cut off by the government and cannot access his own money, his credit cards don't work, he can't call anyone, and so on.

You can get your money back if someone hacks the bank and steals it but that was the bank's mistake. It allowed someone to gain access and it will have to pay you back.

In Bitcoin if you get hacked it's your mistake not some institution's.

There's no way crypto will replace the dollar, but I must say dollar is going weak now, so if there would be a replacement it will be probably another fiat currency more likely Euro or Yuan, no one really knows about it. But I must disagree, using banks isn't a problem, crypto just solved the convenience problem that we got from the banks. We don't need crypto that much, well as much as I can think of, cash is the most convenient way to pay or receive, don't need to pull your phone out of your pants, open an application, scan the code, type the amount and after that you got a long line of other customer waiting after you.

I like how you scared him off, but yes it's true, there been a lot of stories in here that they failed in life after engaging with crypto  

Of course those questions have been asked before, when it comes to your second question about losing your coins because they were stolen you need to understand the next, in bitcoin you are your own bank which means you are in charge of the security of your coins, if you are not comfortable with this then most likely you will choose to store your coins in an exchange using them in a similar way to a bank but just as you can be hacked exchanges suffer from the same risk.

The problem of inheritance has been discussed several times as well but just like anything valuable you need to tell your family what you have even if you do not give them access to it, you could buy a small safe and store your encrypted keys or seed words there and give the way to decrypt the keys to your lawyer with the combination of the safe.

The compromise in security only happens when you divulge the information to an entity you don't entirely trust. I know trust is a very vague concept but it works in humans very well. Also, I think it's not the fault of bitcoin's design when coins are lost forever due to lost keys if someone dies. It's a part of what makes it 'secure' IMO, so if you have a different meaning for the term, then perhaps you got the concept of bitcoin wrong.

Or, place your keys in a safety deposit box, and create a will that gives all the rights to that keys to your heir. Ain't even hard to do that nowadays.


That's why you have to take effort in keeping your funds safe. Money stolen on banks and credit cards are in similar nature to money stolen in crypto: it's mainly due to the user's negligence on his/her privacy. If you know how to keep your funds safe, you don't need to ask for a third-party or an organization to give back the money you lost.

Well it depends. If you know who steal it, you can $5 wrench him as well. The point is, you can always make back up and improve the security of your system, and I think that price is worth it considering you have sound money. Bank/fiat is not really sound, as it's controlled by an entity(ies) that can decide "nah f you dude" if they want to. Even if you can recover your lost card, how many times or how long you need to do it? What kind of documents that you need to submit? It is not as good as it sounds.

Do you really mean security? The fact that you are the only owner of the access keys to your money makes the cryptocurrency safe. What you are talking about is not security. You cannot be hacked without your help, you cannot be robbed without your help.
If you're afraid of dying, write a will, split the private key in two, and give it to two unrelated family lawyers if you don't trust your family. But if you don't trust your family, why would you leave your keys to them after you die?

Forever lost bitcoins increase the scarcity of the already limited amount of bitcoins in the world, which has a positive effect on the price.  


As I said above, you are the only one who can help steal your cryptocurrency. In addition, some exchanges reimburse losses in case of hacking.
But if the crypt was stolen from your personal wallet, then the only person who is responsible for this is you, since you neglected security.

Nobody but you can help intruders steal your money, that's the point.

IIRC, this question has been asked many times. It's your style how you will make your last will testament or at least make an instruction to the people that you will leave the private keys.

Yes, it can't be retrieve because bitcoin transactions or crypto in general are irreversible.

Yes, it was asked many times. With those concerns, it's we who are going to keep it. We will learn how to be secure our own wallets. That's why the motto of one web wallet, the blockchain.com 'be your own bank'.

There is no perfect system, but I'd rather be my own bank and the only one under the control of my money instead of using centralized currencies printed by centralized authorities and used in a centralized bank account. In my country, you can give permissions over your bank account to other persons as well. The thing is, with BTC you can just transfer all your coins to your own secondary wallet and there goes the solution to your problem. Leaving BTC to others post-mortem should remain as it currently is: a personal choice. If someone wants to prepare for an if scenario, it's their own job to do so.

Good. I mean, I would rather not be constantly tracked by anyone else.

There are so many completely free storage options for your Bitcoin seed. If you cannot take one hour from your time and use it to understand how to properly secure your seeds, it's not Bitcoin's fault for it nor is it anyone else's. You cannot "steal" crypto that easily if you have proper security.

I do not know what the future of Bitcoin looks like as I'm not a crystal ball, but I do know that while there are some pretty rough issues going on and increasing on a daily basis right now (privacy issues), one day or one decade from now I will still have my coins regardless of Bitcoin's status. Decentralized should be the future, but centralization camouflaged with a little cherry on top is trying to hijack the movement.. and seems to be having success so far.

Yes, it was asked many times before, in essence, crypto or at least crypto in general are very secure. But you have to understand first how everything works. The problem is that newbies just tend to jump on the bandwagon without understand the whole system and how to protect their crypto asset. You can read this thread to give you an idea regarding bitcoin's inheritance

• Bitcoin Inheritance Planning
• Leaving Bitcoin as inheritance
• How bitcoin inheritance can be achieved.

• When Bitcoin Must Be Inherited

The government/financial company will only contact your beneficiaries if you have that set up properly. otherwise your assets will go to probate.  You can set up the same thing (leaving direction in a Will) for bitcoin/cryptocurrency.

The blockchain transactions can be tracked, while much harder to do, it's possible.

Hmm nope, there is no such thing as 100% secured. Living in this world where people can transact digitally and physically has no assurance that it is 100% safe. Either of them already has existing flaws in which it might get reduced when people educates themselves to achieve optimum security.

The goal is to stay away from intermediaries and I think factors such as financial sovereignty and privacy are enough in order to consider that bitcoin has a lot of power it can give to people. Giving you the authority to control your finances comes with great posibility. In fact, not being a couch potato when it comes to educating oneself about their financial responsibility while achieving freedom is a win win situation.

Those adversaries you have mentioned is your sole responsibility for self education.
[1] https://github.com/BlockchainCommons/SmartCustodyWhitePapers/blob/master/%23SmartCustody-_Simple_Self-Custody_Cold_Storage_Scenario.md#physical-theft-casual

Its not how it was explained to me. We do have different view on what security means.

Security means the transaction is secured by POW and that when BTC is sent, its there and it can only returned back to the sender when the recepient decides to send it back.  No autorities can intervene to stop the recepient from using the BTC he recieved and its the same way that you money can't be frozen by authorities.

Multisig. Holding the funds in an address secured by multisig allows the access of the funds as long as the required amount of signatures is met. It helps if you were to set 2 of 4 multisig, with you holding 2, the attorney holding 1 and an inheritor holding onto 1. After your passing, the funds can still be accessed even without your multisig.
It really depends how much you value; your incompetence or your privacy. You could use your bank transfer but this would mean that someone else could easily see your spending habits and stuff. If you were to take appropriate security precautions, you shouldn't be facing a problem with your funds getting stolen.
Yes. If you bothered to Google or search this forum.

It probably isn't the currency of future. (I mean It won't replace the dollar) Nobody really knows. Crypto solves a real world problem (send&receive money without using any banks) and that is what matters most.


Yes.

If you don't know what you are doing or get too greedy, crypto can fuck you up in ways you haven't even dreamed of.

Because transactions happen without the need to trust anybody or any entity but the immutable network. That is how secured it is. Can you put your trust absolutely on any person or organization? Of course, not. Can you trust any authority which is not absolutely objective for that matter? No, of course. That is why Bitcoin removed all of those.


You can't have your cake and eat it, too. Bitcoin is all about freedom. Your Bitcoin is yours alone. Your money in a bank or invested in stock is not your money because it is in the possession of another entity which, again, you cannot absolutely trust. If you decide not to tell anyone about it, then that Bitcoin will die with you. It is up to you to judge whether this feature is advantageous or beneficial to you or not.


Stolen money or Bitcoin may or may not be recovered although it is more difficult to recover the latter than the former. But the reason being is that, again, your Bitcoin is yours alone. It cannot be seized from you unless of course you are keeping it the wrong way or you decide to give it away. As a matter of fact, stealing your Bitcoin is not even possible if you are keeping it properly.

There are many ideas how to solve the inheritance problem, for example here.


There's actually no guarantee that your money will be returned if they are stolen from your bank account. If you react quickly and notify the authorities and the money is still in the thieves account, you have a chance, but if they withdrawn or moved them, then it's much less likely.

Essentially, Bitcoin and banks have different security models. Banks protect their customers from mistakes or theft by putting additional verification requirements and transaction limits, while Bitcoin protects users from untrustworthy custodians, but it comes with additional responsibilities. If you don't have the skill to be your own bank, you'd better to stick with a traditional bank.