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245 sats \ 5 replies \ @freetx 4 Dec \ on: Which btc threat vectors concern you most, if any? bitcoin
Two biggest risk factors are:
(a) A major custodian (like Coinbase) is hacked. This could produce such a backlash that Wallstreet + Regulators came out and said: "Digital Assets are inherently incapable of being properly held securely in custody accounts" and that would effectively end most official support for it.
(b) Future code updates introduces a critical catastrophic bug that is exploited - imagine millions of coins either permanently lost or stolen. While this could possibly be mitigated via a variety of different ways, it may set back public adoption by a few decades.
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99 sats \ 3 replies \ @stack_harder OP 4 Dec
apparently 98% of CB customer funds are stored in offline, geographically distributed cold wallets, which are disconnected from the internet
the liquidity stuff in hot wallets is insured, to a point, so i don't think that would be super catasropihc
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21 sats \ 1 reply \ @Bell_curve 5 Dec
Xapo
Coinbase purchased Xapo cold storage a few years ago
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11 sats \ 0 replies \ @freetx 5 Dec
Exactly. Its xapo custody.
Back in the day Xapo was buying old military missile silos (I think) that they were using as their off-grid key storage facilities.
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11 sats \ 0 replies \ @freetx 4 Dec
Yes, but internet is not required. You just need enough insider employees who can coordinate their efforts in non-detectable ways.
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0 sats \ 0 replies \ @Bell_curve 5 Dec
My guess is Coinbase and MSTR and others such as bitgo have catastrophic insurance
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