[Thorrez]

You're right that a lot of the risks are due to holding in a central website. But cryptocurrency in a central website is more risky than fiat in a central website, because if a central website gets hacked and the hackers steal fiat, generally those transactions will be reversed, whereas if the hackers steal cryptocurrency, generally those can't be reversed.

[peyton]

What do you mean by stealing fiat currency from a central website? How would a website custody fiat?

[Thorrez]

I do an electronic transfer from bank A to bank B. I have a balance in bank B. Bank B then gets hacked.

[polygamous_bat]

Paypal?