this post was submitted on 10 Nov 2023
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To add to this concern, centralized currency has its pros. Because it's centralized, it can be governed. If I wire some money to an unintended target, sometimes that money can be recovered. There's plenty of stories of people getting unexpected deposits into their bank accounts from their payroll company and everyone tells them to report it and not touch it.
Then there's the Seth Green incident where he got phished and someone stole his IP rights to his bored ape. If the ape NFTs were centralized, Seth could have reported the fraud and had it returned.
How would this work at scale? Imagine if a company like Apple got their keys leaked and someone siphoned millions of currency away from them. Does Apple just take the loss? What if your grandma gets her account stolen, she just loses her retirement with no recourse?
I'm quite happy that the legal system backed by the police and military are backing up my fiat.
This sort of thing basically happened to me once with crypto and I literally just kept it, was great, minor miracle since I didn't know how I was gonna pay rent that month and it was basically the full amount.
Yes. Realistically though big companies wanting to custody large amounts of crypto are outsourcing this to reputable third parties like Coinbase specializing in secure crypto storage. Probably have insurance on it also.