Money is a creation of government, and frankly, the dollar ain’t so bad.
If my bank goes under I’m protected by the FDIC. If Coinbase goes under they have the right to use my money to pay their creditors.
If my bank goes under I’m protected by the FDIC. If Coinbase goes under they have the right to use my money to pay their creditors.
It might be not bad. For you.
Perhaps you are an American. Whenever your government prints more dollars, because the rest of the world holds dollar reserves, the value of those reserves go down. So everyone else in the world basically finances the US money printing.
So, if you are an American, the dollar is not bad. Its actually very, very good.
But for the rest of the world (96% of the world population), its pretty bad. It is used as means to transfer their wealth to US.
FTFY. It's not done out of philanthropy.
I can't help feeling that by the time that becomes relevant, those cryptocurrencies are quite likely to be worth very little anyway, as coinbase going under is (IMHO) quite likely to be correlated with a general cryptocurrency market crash.
Which will be correlated with a general market crash.
As we are going through one now, it seems to follow that cryptocurrencies should crash more as a lot of tech companies have actual value and make/offer things we want while cryptocurrencies do not.
And SIPC covers brokerage accounts up to $500k.
Spread it around in multiple banks and it's more money then I'm ever likely to accumulate in my savings. Although if you have that much money in the bank arguably you're missing out on much better returns in the market if you're young and have time on your side.
And to say nobody keeps bricks of gold at home, well just peruse reddit [0].
[1]: https://www.nytimes.com/2021/01/13/business/tens-of-billions...
It's also worth noting there are certain unique risks to exchanges that aren't really applicable to most bank accounts.