Earlier quoted context omitted.
I think people (perhaps rationally) believe that the people running the exchanges know more about keeping bitcoins secure than they themselves do. The analogy would be that you're a lot safer putting your money in a bank than trying to keep it safe in your house. And certainly a company whose entire business is trading in bitcoin should know how to keep them safe. Unfortunately the reality is obviously sometimes diff…
> I think people (perhaps rationally) believe that the people running the exchanges know more about keeping bitcoins secure than they themselves do. There was nothing rational about this assumption. Banks are bonded and insured with teams of very, very good security professionals auditing their stuff. Mt fricking Gox? Not so much.
Re: Apparent Theft at Mt. Gox Shakes Bitcoin World
#81Absolutely, but MtGox probably still knew more about keeping bitcoins secure than most individual owners. The decision to leave it at that and entrust them with large amounts of money wasn't rational, but the belief by many people that they were out of their depth managing the coins themselves was probably correct. (How many coins have been lost in hard drive crashes without backups for instance?) Yes, most people could educate themselves on these things, but most people won't. Nor should everyone have to be educated on everything; that's what civilization is all about. But if you aren't willing to do so, you probably shouldn't be an early adopter, before safeguards are in place.