# Lifestyles & Discussion > Bitcoin / Cryptocurrencies >  Community backed FDIC, interesting article.  Your thoughts?

## newbitech

http://www.forbes.com/sites/cameronk...y-backed-fdic/




> Its important to understand that an exchange failing is not the same as a failure in Bitcoin.  This is best understood by comparing a bank collapsing being separate from the US dollars value. Its a problem with the bank or exchange.  But, these failures obviously have a serious impact on the value of Bitcoin. People are worried about the security of their Bitcoins.

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## newbitech

I think the biggest hurdle is the fact that the protocol supports irreversible transactions as a primary feature.  This will always be the fallback.  As long as this is a core feature, any type of best practice or community based standard will be override on the basis of this one core principle.

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## kpitcher

As the bitcoin marketplace grows there will be less reason to have exchanges in the first place. When you can buy anything with bitcoin, easily, the reason to convert to fiat goes away. The few times you need to places like coinbase are making it very simple and they also have 2 factor authorization built in from the start.

As for the FDIC idea it doesn't need to be a community organization. That one bitcoin wallet service is fully insured at the cost to the user. I can see this becoming more common, larger well funded bitcoin services that have people park any coins will be advertising that they are insured. Then the user can determine, as a real free market choice, who they wish to use.

As to irreversible transactions that's part of the core concept. Otherwise we're back to having a centralized service and places like paypal arbitrarily deciding who can and can't use their service. In today's age of twitter bombs I'd hate to have community consensus on if a coin transaction should be invalidated. Those with the most followers would win. Yes thefts like what happened to you will happen, just like muggings will continue to steal cash in meatspace yet people will still carry cash, but not having to move things around out of your own personal wallet once the need for exchanges diminishes will help alleviate that.

Interesting link tho, thanks. Bitcoin is still young it's fun to see what discussions will help shape it.

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## Bungeebones

People just need to do some studying up and learn how to be their own bank by keeping their Bitcoins off the web. If they did then the only ones on the xchanges would be the speculators and traders (and they ought to be able to do their own due diligence like a big boy) or those that are indeed cashing out (in which case the chance of the exchange dieing just at that particular moment would be slim.

People just need to install Bitcoin Armory and build their own cold storage wallet. Why take the risk of storing Bitcoins somewhere else, especially when they don't pay a bit of interest or dividends? Makes no sense.

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