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by PeterisP
4601 days ago
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These crimes don't point to a weakness of technical protocol, but they do point out to a weakness in bitcoin as an unregulated payment system. If you want to do business in such a system, then you must rely only on yourself and keep in mind the risks from counterparties and intermediaries that are significantly different than for "normal" currencies. For example, if you want to wire $10 000 to someone, you can basically ignore risks of someone stealing it in the middle; if you want to give someone $10 000 worth of bitcoin - then if any intermediaries are involved, you'd have to check them yourself. If a regulated financial institution holds $10 000 of your money, you can pretty much ignore risks of it going bankrupt; but if an unregulated money transmitter holds your bitcoins or cash in the same amount, and they go insolvent or fraudulent, then your funds are gone. |
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