Re:Why Bitcoin Matters
by ronaldx on Wednesday January 22, 2014 @08:31AM
(#7102412)
Furthermore:
By making transactions in Bitcoin, you lose legally-mandated formal protection such as chargebacks and FDIC insurance.
Despite what Marc says in the article, I find this is a big minus for Bitcoin on a day-to-day transaction scale. Traditional banking is pretty robust against bad actors, but if I put my Bitcoin in the wrong place for just a second... it's gone.
A great deal of infrastructure is needed to solve these problems, which is partly why it's a good bet for Marc to invest: if successful, there is potential for an uncompetitive oligopoly even compared to traditional banking.
By making transactions in Bitcoin, you lose legally-mandated formal protection such as chargebacks and FDIC insurance.
Despite what Marc says in the article, I find this is a big minus for Bitcoin on a day-to-day transaction scale. Traditional banking is pretty robust against bad actors, but if I put my Bitcoin in the wrong place for just a second... it's gone.
A great deal of infrastructure is needed to solve these problems, which is partly why it's a good bet for Marc to invest: if successful, there is potential for an uncompetitive oligopoly even compared to traditional banking.