If my bank sent me this notice, the FIRST thing I'd do is withdraw all my money - there's every chance it may be "an absolute necessity" to steal more of it at any time...
I keep seeing this attitude among Bitcoin fans. Of course, there have been many financial crises with regular currencies and banking systems. But that doesn't mean they're the norm. When you look at the number of crisis against the number of different financial systems and years-without-a-crisis it's obvious that they're exceptional. Sadly, the number of Bitcoin shocks seems to be increasing linearly with scale.
I don't think this is inherent so much as a problem of overconfidence and magical thinking. Right now Bitcoin service providers (in the aggregate) are like builders whose structures catch fire distressingly frequently, but who excuse this by pointing to famous fires of the past. The fact that fires have historically been a problem doesn't mean fire codes are useless; quite the opposite, in fact.
- something bad happens to someone doing the conventional thing (vaccination, banking)
- people panic about it on the internet
- there is a lack of trust in other people and institutions
- people pull away from the conventional system
- in the short term it's fine
- then there is an epidemic (measles, fraud/loss)
- this is much worse than the system they rejected, so they resort to denial
- everyone else says "I told you so"
It's also why I don't understand maintaining a balance with a service like this. Unless you're doing very small trades, the 0.2% fee plus the network charge for a withdrawal seems like a small price to pay to be mostly safe from this kind of thing.