Until Coinbase came along, and made it easy for people in the US.
So how long before they begin engaging in fractional reserve?
If they are hacked and lose a significant portion of the bitcoins that they hold, will they make the information public?
How can you be certain that nobody in the entire company will ever disappear taking a substantial percentage of the funds along with them.
I understand that many people trust them, the question I have is: "What makes them more trustworthy than MtGox?"
They literally can't engage in fractional reserve, unless people use Coinbase as a wallet. If people use it like how I use it, they can't do fractional reserve.
You mean like the way people used MtGox as a wallet?
Doesn't Coinbase encourage people to use them as a wallet? I recently made a purchase from a merchant that uses Coinbase to process transactions. The merchant was unable to deliver and processed the refund through Coinbase. Coinbase required me to set up a wallet with them to claim my refund.
How long until they start offering off-blockchain transactions between Coinbase wallet users for micro-transactions and instant transfer?
When I sell Bitcoin on coinbase, the money directly goes to my bank account in a few days. Coinbase has no withdrawal fees on Bitcoin withdrawal, also Coinbase does not offer limit orders, so there's zero reason to keep your coins there.
People choose to keep their bitcoins there for convenience if they trust them. Perhaps you'll start to see that "directly to my bank account in a
few days" grow to "several days", and then "a week", and then "a few weeks". Didn't MtGox eventually encounter delays with withdrawals?
As for trustworthiness, being a US company founded by financial industry veterans, and multiple high profile VC backing, seems pretty trustworthy to me,
Right. Just like Enron, the entire banking industry leading up to 2007, and Arthur Andersen.
Also their cold storage has been audited by trusted 3rd party.
Interesting. I guess I hadn't kept up on the news about this. Can you provide a link? I'd like to read about it and understand what steps they've taken.
