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The following is a quote of waxwing on reddit: There are trade offs with everything, but trusting Coinbase with your Bitcoin is not the same as trusting a bank with your dollars: Suppose 5 people are needed to access the funds, within Coinbase, e.g. the CEO, the tech lead engineer and 3 other senior employees. Suppose one day they wake up and decide to be evil and move all the Bitcoin to some private account of theirs, and perhaps make up a story in the press about how...