Don't get me wrong. The proof of work ledger is a cool idea. However using it as a currency in this kind of implementation with complete disregard to anything else doesn't work in the long term.
Well, it solves more than one problem, and a few of them are certainly real-world.
>However using it as a currency in this kind of implementation with complete disregard to anything else doesn't work in the long term.
Would you care to expand on what you mean by "complete disregard to anything else"? I mean, clearly this is hyperbole, but I'm curious what you are referencing specifically.
In addition one of the biggest problems with bitcoin stems from the problem it solves. Transactions cannot be reversed, thus making thefts extremely lucrative.
Normal banks simply reverse transactions if they are fraudulent. As an example someone hacked Nordea (Bank operating in Nordic countries) last spring and got away with 600 000 euros. All of the transactions except one were reverted and the missing one was compensated by the bank.
That's not a feature.
Other than that, bitcoin behaves more like cash than like banks or credit cards. You can build banks and credit cards around bitcoin, and you should, but bitcoin itself is just like cash, and that's all it should be. It doesn't need to solve other problems that as you say have already been solved by systems like two-factor authentication and the like.
This particular attack is more like thieves walking into a bank and claiming to be a person and then being able to get cash from the bank's safe (an analogy that also fits nicely with the relatively small amount of money they were able to steal). It is not like being able to rack up fraudulent charges on a credit card.
I don't think there is a working implementation of the multisig contracts in the wild yet, but the protocol does support a way to solve these problems.
So what? Banks have the same problem. If I call up my bank and ask them to do something, they'll ask for a bunch of random information I didn't know I'm supposed to keep secret.
> Bitcoin solves a problem which is not actually a problem in real world.
What? It solves the problem where some incompetent fucks are in charge of your money and screw you over, which is exactly what happened to this company (except they trusted them with hosting instead of money)