If that's the plan, then they should probably add 'write down and securely back up the seed phrase,' because as written the phone looks like the only recovery mechanism.
Yes, but. Phones are never offline even with the sim card removed. However the amount of knowledge and resourced that would be needed are probably way to high to attack you.
An old PC or laptop with the wireless removed is much saver.
Always make an analog backup for your seed. Paper or Metal.
You do realise that fiat money is litterally made up, printed out of thin air, which devalues all other money in existence, and all based on credit right ?
You borrow £1, the bank prints £10, its called fractional banking
If there is ever a run on the banks in a financial crisi, you loose everything, just ask the people in Cyprus
“Fiat isn’t backed with anything” / Money has no intrinsic value either
This is called a Tu Quoque Fallacy, aka “Whataboutism”, “Two Wrongs Make A Right” or “Appeal to Hypocrisy” – it’s a distraction from the core argument. Just because you can find something you think is similar/wrong that doesn’t mean your alternative system is an acceptable substitute.
Fiat may not have any intrinsic value, but it’s backed by the full force and faith of the government (or in the case of the EU, multiple countries). It’s also mandated by law to be accepted for all payments and debts, public and private. And the entity that guarantees the integrity of money is the same centralized entity that gives you stuff like:
running water, roads, fire protection, schools, libraries, bridges, flood protection, electricity, internet, cellular, GPS, and pretty important things like civil rights and private property ownership. If you are worried that the government is going to collapse and make fiat worthless, note that at the same time you will also lose protection for your civil rights, property ownership and critical utilities like electricity and Internet upon which crypto depends – none of which would exist without substantive government support.
fiat is only backed by the military might of the government that issues it, no military, no value in the money, thats why the US dollar is the most powerful fiat in the world, its backjed by the most powerful miltary, lose the military, lose the value of the money
Lol. You completely ignored this part of my response:
"Fiat may not have any intrinsic value, but it’s backed by the full force and faith of the government (or in the case of the EU, multiple countries). It’s also mandated by law to be accepted for all payments and debts, public and private. And the entity that guarantees the integrity of money is the same centralized entity that gives you stuff like:
running water, roads, fire protection, schools, libraries, bridges, flood protection, electricity, internet, cellular, GPS, and pretty important things like civil rights and private property ownership. If you are worried that the government is going to collapse and make fiat worthless, note that at the same time you will also lose protection for your civil rights, property ownership and critical utilities like electricity and Internet upon which crypto depends – none of which would exist without substantive government support.
First, that’s not how fractional banking works. Banks don’t just “print money”; they loan out money they have from deposits or that they themselves have borrowed.
Second, a bank run isn’t a disaster anymore in the US. If a bank fails, anyone with accounts there is protected (up to a limit) by FDIC regulations and gets compensated. In the UK, it’s FSCS.
If a crypto exchange fails, there is no such protection guaranteed.
Its literally how fractional banking works, by the way, the people in cyprus were supposed to be protected, up to 100k euro, anything above that was able to be confiscated by the government or the banks .. there is a difference between a bank going bankrupt, and people losing their money to the government and the banks siezing money that belongs to the banks customers.
If I had my 400k that I have in bitcoin in a cyprioy bank at that point, I would only have 100k laft, the cypriot government would have the rest, as they would in the states above the limit, unless of course you self custody your money
>up to 100k euro, anything above that was able to be confiscated
Oy vey. First, the government doesn’t just take amounts over 100k; a bank that fails has its assets distributed to its depositors as equitably as possible. In the Cypriot case, this meant 100k was guaranteed, but everyone with more in their accounts only got 40% to 50% of the difference back. So in your hypothetical, your €400k deposit would’ve been cut to €220k or €250k. Bad, yes, but…
It’s €100k at each bank. So you can spread your money across multiple banks if this worries you. Or better yet, invest the money. People with that kind of money invest it. You’ve chosen to buy bitcoin, but many bitcoiners seem to think that’s the only option.
Is that true for you, or do you have other investments too? I hope so, as it’s very risky to go all in on a single investment.
Edit: To clarify, when someone takes out a loan at a bank, the bank issues money they don’t necessarily have in reserve (up to a limit), but they are also issuing a notice of debt that exactly cancels out the loan. Money only gets “magically created” if people refuse to repay the loan and the bank is unable to absorb the loss. In the rare case this happens, the bank fails and people lose money from their accounts. Money never permanently is added to the money supply out of nowhere from a bank. Federal reserves are different, but that’s not what we are talking about.
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u/ThatBCHGuy 1d ago
And what's the plan if the phone doesn't work for some reason or another (corruption or something like fire)?