> Traditional banks, for the most part, have DNA built around protecting customer interests and customer money.
Would you feel comfortable wiring your money off to a bank account in the Bahamas? I wouldn't. I think safety is more about jurisdiction (and therefore regulations) than it is about what type of currency a business deals in.
Bank DNA has always coded for taking foolhardy risks with customer money. It wasn't until heavy regulation came into play that banks stopped going bust left and right, at least in the USA. Even under heavy regulation, you still see their true colors from time to time such as when they discovered risk loopholes in 2008 that led to the financial panic.
Until regulation hits crypto custodians, they will largely be fly-by-night yokels that go bust left and right, just like the first American banks did. After regulation hits, they will be just as safe as modern banks (and likely, many crypto custodians WILL be modern banks - see e.g. Fidelity entering the custody business recently.)
> The real problem behind all these crypto companies is the people who make the money have no concept of what "integrity" is.
The entirety of Wall street has no concept of what "integrity" is. The solution was heavy regulation. It happened to banks, and it will happen to crypto. Crypto custodians are speed-running banking regulation.
Would you feel comfortable wiring your money off to a bank account in the Bahamas? I wouldn't. I think safety is more about jurisdiction (and therefore regulations) than it is about what type of currency a business deals in.
Bank DNA has always coded for taking foolhardy risks with customer money. It wasn't until heavy regulation came into play that banks stopped going bust left and right, at least in the USA. Even under heavy regulation, you still see their true colors from time to time such as when they discovered risk loopholes in 2008 that led to the financial panic.
Until regulation hits crypto custodians, they will largely be fly-by-night yokels that go bust left and right, just like the first American banks did. After regulation hits, they will be just as safe as modern banks (and likely, many crypto custodians WILL be modern banks - see e.g. Fidelity entering the custody business recently.)
> The real problem behind all these crypto companies is the people who make the money have no concept of what "integrity" is.
The entirety of Wall street has no concept of what "integrity" is. The solution was heavy regulation. It happened to banks, and it will happen to crypto. Crypto custodians are speed-running banking regulation.