[beeflet]

In cryptocurrency, you can use a multi-signature account to define your own security setup.

For example, even a 2-of-2 setup with a trusted authority like a bank is straight-forward improvement in security over the conventional bank system.

You can go further, for example consider a 3-of-5 setup with 2 keys in security deposit boxes, 1 key on a laptop, 1 key on a phone, and 1 key on a hardware token. You can set the hardware token to erase its keys when the wrong pin is entered, making it pretty rubber hose proof.

[hvb2]

But no one will require that. When you do, no new money will flow into crypto and the music stops. And no one in crypto wants that.

So you want there to be as low of a barrier of entry as possible, which is how we get here...

Especially when transactions can't be traced

[beeflet]

It doesn't need to be required of anyone. People are responsible for their own funds and have their own security/effort profiles. The "right way" of doing things will be discovered through natural selection.

If some idiot leaves all of their funds on an exchange like this, and it gets hacked, then good. That's how the market evolves and money moves out of the hands of the incompetent and into the competent.