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Comment by minimax | Hacker News Reader

Transaction metadata is public. Transactions are irreversible. You have no FDIC protection of your savings. Volatility, volatility, volatility. Oh and now I guess if you really want to hold on to your bitcoins you have to keep them in "deep cold storage," whatever that means.

Bitcoin is the technology equivalent of the emperor's new clothes.

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> Transaction metadata is public

So I can verify the transaction

> Transactions are irreversible.

I can be sure the transaction is final

> You have no FDIC protection of your savings

I can be sure that no currency can be created out of thin air. I still have the option to buy third-party insurance

> Volatility, volatility, volatility

Better than artificial stability that hides risk

> Oh and now I guess if you really want to hold on to your bitcoins you have to keep them in "deep cold storage," whatever that means

Ownership of the private key(s) is equivalent to ownership of the funds.

> Bitcoin is the technology equivalent of the emperor's new clothes.

Either that or http://tvtropes.org/pmwiki/pmwiki.php/Main/UnderdogsNeverLos... ;-)

> Ownership of the private key(s) is equivalent to ownership of the funds.

You don't hold the private keys when using a third party service, including this insured storage.

You also don't really own your Bitcoin then.

> Ownership of the private key(s) is equivalent to ownership of the funds.

You don't hold the private keys when using a third party service.

Public metadata, irreversibility, and lack of FDIC protection are all good things. Volatility is in no way inherent to the system, and is mostly the result of an increasing pool of speculators (because it's new and people are still learning about it). The "deep cold storage" thing sounds like a bigger deal than it actually is, and is easier or more secure (or both) than the storage mechanisms of every other asset I can think of.

Lack of FDIC protection is a good thing? Seriously? Congratulations, bitcoin, you have managed to reinvent people keeping cash stuffed inside their mattresses.

Yes, lack of FDIC protection is a good thing, because better alternatives would exist. Deposit insurance can be implemented far more efficiently in a competitive market. And this has nothing to do with "keeping cash stuffed inside their mattresses," by which I assume you mean not being invested in some form (e.g. being loaned out to other people and earning interest).

In bitcoin you have an option between reversible and irreversible transactions. (see multi sig transactions)

In traditional finance you ONLY have reversible transactions.

Options are good.

lol stay pleb, volatility will continue to plummet with things like http://www.coinsetter.com , and with decreased volatility, things like insuring storage and then making profit on investment will continue to rise. You are a fucking moron

You appear to have HN and reddit confused. Consult your sibling poster for guidance on making a reasonable refutation of GP's comments without resorting to “lol stay pleb” or “fucking moron”.

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