[skybrian]

re: "The question is not whether [databases] are going to be hacked or not, the question is when. These are natural honeypots for hackers."

This is not a good argument for cryptocurrency.

Just like a regular wallet attracts pickpockets, a Bitcoin wallet is a natural honeypot for hackers.

Just like a bank attracts bank robbers, a crypto exchange is a natural honeypot for hackers.

Really, the issue here is money. Money attracts thieves. The money is the honey, and the computer is the pot.

So far there's no evidence that cryptocurrency reduces theft, and quite a lot of evidence that it encourages theft.

[freech]

The difference here is that if I fail to secure my wallet only I loose my money, but if the bank fails to secure their database, all its customers loose their money.

[skybrian]

Do you know an example of a bank that lost its customers' money due to being hacked?

On the other hand, plenty of crypto exchanges have been hacked.

[rrecuero]

A centralized crypto exchange is as centralized as a bank. Both have the same security risks. What cannot get hacked in the same way are decentralized exchanges like RadarRelay

[skybrian]

I guess, but looking at RadarRelay, apparently you can't trade anything except Ethereum-based tokens, so that's barely an exchange.

[CryptoPunk]

92 of the top 100 tokens and something like 40 of the top 100 crypto assets (tokens and coins), by market capitalization, are Ethereum-based tokens, so that is a substantial potential market.

[skybrian]

That's okay as far as it goes but it's very limiting. Everything that really matters in life and nearly all possible investments are not on any blockchain. Even for crypto coins, the most important trades are for things not on a blockchain.