This story already happened in real life. Your cold wallet is as safe as your ability to withstand PAIN. The real thing: https://news3lv.com/news/nation-wor...y-ltd-crytocurrency-scan-scamming-ctv-canada# But wait, there is more. The basis for the movie: https://www.ctvnews.ca/montreal/art...illing-of-montreal-cryptocurrency-influencer/
Here is an idea ... use a custodian and buy it in an ETF. Then it has the exact same vulnerability as any stock/bond/mututal fund/ ETF etc. Also, "in kind" redeptions are going to come out of this administration. So if you really need the bitcoin "physically" (meaning you hold your own keys), you will be able to just in kind redeem it from the ETF. Basically, the future for people in the developed world is to have somebody custody the bitcoin that you hold for an investment ... like every other investment.
cold wallet these days are not a good idea, with 12 randomized codes stored seperately. read a uk guys lost his drive in a garbage dump and he wants to pay lot of money to buy all the trash to find his coins? the judge said no. anyway, the gov folks can trace and recover the coins now, if you own via a legit venue and hacked, the fed will help.
the problem i have with this is like insurance companies (illiquid), governments (in the case of gold) and others. it's easy to say you have "crypto" backed etf when you actually have none. i am positive this is already the case with some etf's and one day like insurance companies they will not pay out.
This is one of the many reasons Bitcoin is doomed. Banks and the system of laws governing them did not just spring up overnight. Having all your wealth on you or in your home is dumb. Someone might think of Bitcoin ETFs as a solution. Wait until the Canadian gold heist gets played out against a Bitcoin ETF. They don't even need a truck. Just steal the wallet keys, fly out of the country, execute the transfer. Instantaneous irrevocable international transfers are a key feature of Bitcoin and they will be part of its undoing. No. Normal finance has know your customer requirements, and checking for suspicious transactions. There are also delays and clearing periods. If the CFO of Schwab tried to transfer all the assets held by Schwab to an anonymous account in Nigeria that was created 5 minutes ago, questions would be asked. Think through the mechanics. Schwab doesn't even have stock certificates for the stock I own. Those are held electronically at DTCC. To transfer them DTCC are going to want to see sell and buy orders. But even if they sold my stock without permission, the cash would come into an account with my name on it. Then there's the issue of DTCC screaming because Schwab would have the assets to back their trades. Say they just try the run off with the cash. CFO transfers money from segregated customer accounts (people who are not the CFO call the regulators because they don't want to go to jail). Then cuts himself a corporate check or does a wire transfer. (Immediately flagged as suspicious.) Bitcoin was specifically designed to bypass a lot of existing controls in the financial system. This is something that Bitcoin supporters publicly brag about. But it creates a huge risk that doesn't typically exist with other assets.
Could not agree more... if ETF looses it keys! what then as compared to ETF holding stock, that stock is identified, cash is protected by govt etc but the Crypto sect members won;t accept it
Bitcoin can be roll-backed and transactions reversed. It's just a database. If there is a heist big enough, people can change the database and believe that the new one is the right one. If john doe loses the bitcoins, they are gone. But if the heist was big enough... This is what happened with Ethereum and they did roll-back the chain. Such action would result in 2 different databases/chains (like Ethereum and Ethereum Classic).
But seriously... By the time you would be rolling back, I already transferred BTC to Trumpcoin or whatever. Not to mention if you are dead, who is going to ask for a rollback? Are you guys new to crime or crypto??
The thread is not about losing your keys but being robbed (and possibly killed), because "Be your own bank!" paints a giant target on every cold wallet owner.
that's why i invest in bullets, weapons of war, lasers - not only do they rocket in value - but you can use them to defend them lol. gotta get me a gov surplus drone when they come up for auction. some more dshk's and mi-24's also.