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I stay away from everything crypto but I don't see the difference. In both cases if they didn't make it right you'd go to the courts and make your case that the

I stay away from everything crypto but I don't see the difference. In both cases if they didn't make it right you'd go to the courts and make your case that they are at fault and owe you compensation.

btilly 2y ago
The history of crypto says, "Good luck!" There is a long history here of once trusted institutions turning out to be fraudulent.
kgwgk 2y ago
In the first case, bank deposits are insured. In the second case, safe deposit boxes are not insured.
- afastow 2y ago
  They're just different things. The FDIC insurance is for if the bank itself goes insolvent and they literally don't have enough money to cover their depositors' balances anymore. There's no reason a safe deposit box would be affected.
  - throwaway290 2y ago
    A fire, a flood, a robbery...
    - bburnett44 2y ago
      Is a bank deposit box not insured against those things? I've never really thought about it but always assumed they would be
      - dagw 2y ago
        Probably varies from bank to bank, but in my experience you have to specifically buy separate insurance if you want the content of your deposit box insured. The big problem from the bank's point of view is that, unlike your bank account, the bank doesn't know what you have in the box and thus has no idea what to insure it for and no way to verify any claim.
        account42 2y ago
        More importantly the bank doesn't profit more from something more valuable being in your safety deposit box so it doesn't make economic sense for them to be the one insuring it.
  - kgwgk 2y ago
    Yes, they are different things. A safe deposit box wouldn't be affected by the banks insolvency. A safe deposit box may be affected by other things and if those things happen they don't have to "make it right", if you go to the courts and make your case you may find that they are not at fault and you are not owed any compensation.
- deleted 2y ago
  [deleted]

btilly 2y ago

The history of crypto says, "Good luck!" There is a long history here of once trusted institutions turning out to be fraudulent.

kgwgk 2y ago

In the first case, bank deposits are insured. In the second case, safe deposit boxes are not insured.

afastow 2y ago
They're just different things. The FDIC insurance is for if the bank itself goes insolvent and they literally don't have enough money to cover their depositors' balances anymore. There's no reason a safe deposit box would be affected.
- throwaway290 2y ago
  A fire, a flood, a robbery...
  - bburnett44 2y ago
    Is a bank deposit box not insured against those things? I've never really thought about it but always assumed they would be
    - dagw 2y ago
      Probably varies from bank to bank, but in my experience you have to specifically buy separate insurance if you want the content of your deposit box insured. The big problem from the bank's point of view is that, unlike your bank account, the bank doesn't know what you have in the box and thus has no idea what to insure it for and no way to verify any claim.
      - account42 2y ago
        More importantly the bank doesn't profit more from something more valuable being in your safety deposit box so it doesn't make economic sense for them to be the one insuring it.
- kgwgk 2y ago
  Yes, they are different things. A safe deposit box wouldn't be affected by the banks insolvency. A safe deposit box may be affected by other things and if those things happen they don't have to "make it right", if you go to the courts and make your case you may find that they are not at fault and you are not owed any compensation.
deleted 2y ago
[deleted]