Quote:
Originally Posted by Irace86.2.0
I get the analogy, but the same typically doesn't happen if you lose your wallet, and the thief uses your bank card. In most situations, the bank will return the money. I have had fraudulent charges on my bank cards and credit cards multiple times in my life, and every single time the bank closed the car and refunded me my money, or they didn't make me responsible for paying off the fraudulent purchases on my credit card.
The other thing about your analogy is typically people aren't storing large sums of cash in their wallet or their life savings in their wallet, but people do store large sums of money in cryptocurrency or their life savings in cryptocurrency, which is not protected from theft the same way I described above, correct? That is what I am asking.
I feel like banks are federally insured, and my money is safe. I feel like the stock market can go up and down, but my 401k or Roth IRA can't be stolen. By its very nature, isn't cryptocurrency like carrying or storing large sums of cash, and if so, isn't that the reason people secured money in banks in the first place because the money was safer in a bank than in a mattress or a home safe?
https://nypost.com/2019/04/13/hacker...ike-big-shots/ |
Yes its more like losing the cash in your wallet. Zero doubt its more risky now. DO NOT SINK ALL YOU MONEY IN IT OR ANY OTHER ASSET CLASS.
I am a high risk high reward kind of person. I just spend an enormous amount of time to educate myself along the way and take educated measured risk.
Some of the "centrally controlled" operations do have insurance on crypto funds now but only the crypto held on their system. The true "decentralized" platforms are a lot riskier and I keep very little capital there.
Blockfi has FDIC insurance on US dollar holdings and insurance on crypto holdings.
BTW I am a big real estate guy and my total cryptocurrency investments are less then 10% of my net worth. I went heavy into it but I am not dumb.