Don't know how many times I'm going to keep sharing this kind of story. I imagine many. Each time will likely be more important than the last.
If you don't own the keys you don't own the asset
This is the latest story of boy meets bank. Boy banks at bank. Bank is dishonest. Bank run happens. Bank losses are nationalized... this time. Other times bank losses are eaten by the depositors. How could that happen? BECAUSE YOU DON'T OWN YOUR MONEY IN THE BANK.
What?
You don't own your money in the bank.
if you don't own the keys. You just have the password then you're granted access. The true owner is the bank. They can remove money from your account whenever they want. What stops them is that it's bad for business. But if business conditions are bad anyway, then why the fuck not. Bend over... they will take your money.
No matter how much you love the state. No matter how much you think fiat is the best. There's going to be cases, and I'd argue it's going to increase, that the banks are insolvent and literally steal money from you. Look at what happened in Cyprus. Anyone with over 100k in the bank had a "haircut" of 40%.
How is that possible? You don't own it. You gave it to the bank. If you owned the keys and the bank did not that would be different, but they have access to your account whenever they want or need it.
Passwords vs Keys
Passwords are easy to memorize, quick to recover, but requires trust in a 3rd party.
Keys are hard to memorize, impossible to recover, and requires you to be responsible for them. The primary benefit though is that YOU actually own the asset. You're not temporarily granted access. You're the only one that can access it.
Hard times
let's just assume there's problems in your area. There are demonstrations everywhere, a fire, a flood, militants, or just shitty bankers. There's a good chance things will go wrong. If you don't have any backup plan that's bad. You should have some crypto on hand, a bug out bag, and a plan if shit hits the fan.
one last time
If you don't own the keys. You don't own the asset. Sorry if that's inconvenient, but it's better to be mildly inconvenienced than completely borked cause the failing bank or company stole yo' shit.
It is amazing how many people have no idea they are actually giving their money to the bank. Once deposited the person becomes an Unsecured Creditor. Awesome write up and hopefully people catch on to this scam someday.
what if i borrow the keys? or maybe i hot-wire the ignition? possession is .9ths the law innit?
A much younger and skinnier me agrees with you:
2011! Nice work! I was still an idiot democrat.
Yeah, like many, 2008 was the beginning of my waking up
Being your own bank is kind of dangerous too.
Posted using Partiko iOS
You can own your keys, you can own your asset but the asset may not have any value...
Posted using Partiko Android
Scary stuff to think about ......
Sadly most in today's society would likely lose their keys and thus their currency. Just think of the amount of times some lose their bank cards. Most aren't able to securely save their own keys.
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@aggroed, In my opinion this Knowledge is forever sharing one because when it comes to Keys Individual is responsible for their own keys and that's the beauty of Decentralisation, no control and no domination. Stay blessed.
Posted using Partiko Android
Thank you for the friendly reminder. And thank you for willing to repeat the message. I'm new to this space, and it still has not become my backup plan. I really need to get this message repeated over and over until I go through the hustle of elaborating my plan out of fiat and following it through.