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With big money comes big responsibility. Storing $16M should be taken very seriously and probably most people have no clue about that.
by pkrefta 6y ago
With big money comes big responsibility. Storing $16M should be taken very seriously and probably most people have no clue about that.
- bpodgursky 6y agoI think the point is that you can store $16M in a bank and take need to take no precautions against casual theft (and often can recover the money via person-to-person interactions, if theft does occur).
- sjs7007 6y agoI have more faith in the banking system but even there it can get tricky: https://news.ycombinator.com/item?id=24222045 https://news.ycombinator.com/item?id=24222045.
- abfan1127 6y agois it fair to say he could put that $16M in a digital equivalent of his mattress? Had he placed in a reputable exchange, or spread the coins across multiple exchanges, he would have been safer?
- thebean11 6y agoI completely disagree, only the first $250k is insured. I would never store $16M cash in a bank. You aren't protected against the bank becoming insolvent.
- google234123 6y agoIsn't it 250k per account?
- tialaramex 6y agoNo. FDIC is per depositor, per bank, per ownership category. So if you have $300k in Bank A, and $180k in Bank B, and then suddenly both Bank A and Bank B fail, the US Federal Government promises you'll get $250k from Bank A and $180k from Bank B, and pretty quickly - but the remaining $50k from Bank A depends on what happens when they try to wind up Bank A, if it's a complete wreck you may see nothing or almost nothing back or it may take years to get 10¢ on the dollar for the remaining amount. In some cases you may be able to create multiple ownership categories that help you, and I guess if you really had $16M you might do stuff like set up a multi-beneficiary trust fund that can have $1M in it with four beneficiaries for an additional $250k per person FDIC insured.
- sidewndr46 6y agoFDIC is presently $250,000 lifetime limit.
- smabie 6y agoOkay... where would you store 16m?
- majkinetor 6y agoWhats wrong with random hole on random private place you own ?
- ericd 6y agoProbably in US Treasury Bills?
- tootie 6y agoIn an investment account with a reputable brokerage.
- herpderperator 6y agoWhat's the difference between that and a bank?
- tialaramex 6y agoWell the fun part is that the way it's different is that there would be a bank account with your money in it, that the brokerage isn't allowed to touch. So, you're protected from the brokerage going bankrupt - your money is still yours if that happens. But it's still in a bank account, so if the bank goes under you're screwed. See my other comment in this thread though...
- herpderperator 6y agoSIPC isn't unlimited, though: The Securities Investor Protection Corporation (SIPC) was created to protect against the loss of customer assets at brokerage firms. SIPC offers protection of up to $500,000, including a $250,000 limit for cash, if a brokerage firm fails, and covers most types of securities, such as stocks, bonds, and mutual funds. [0] [0] https://www.schwab.com/public/file/P-3042070/Asset_Protection_Brochure_MKT45080-09.pdf https://www.schwab.com/public/file/P-3042070/Asset_Protectio...
- chipgap98 6y agoTo store $16M you definitely need to take precautions. Someone could steal your identity or compromise your account. It seems like different vulnerabilities rather than one that only exists for crypto.
- praxulus 6y agoWhile not guaranteed, it's pretty likely that you'll be able to get your $16M back if you lose it to identity theft or a compromised online account. You may have to escalate from customer service to legal action, but there are usually ways to reverse fraudulent transactions in the traditional banking system. On the other hand there's basically no way for this user to get their bitcoin back.
- brutuscat 6y agoUntil you can't https://en.wikipedia.org/wiki/Corralito https://en.wikipedia.org/wiki/Corralito
- paulcole 6y agoYeah that's because it's a bank not a pseudo-facsimile of a bank.
- Canada 6y agoI keep hearing that, and yet see mailbox hacks where the attacker tells accounts payable to update the payee's account and the money goes bye bye. Seems to turn into an insurance matter. I'm not sure why, but apparently just getting the bank to get the money back isn't so simple. Nobody talks about it in public. Haven't personally seen 8 figure amounts, but have seen amounts around a million dollars.