And this has to be the reason why nobody should be storing Bitcoin on an exchange. I hope the
IOU analogy eventually resonates with enough members in the forum (and anybody else that might read it) to give them time to think about the potential suffering they could face if the exchange they use gets hacked.
As for any Bitcoin Bank, Hal Finney was a commanding figure therefore he would have thought this through. We will have to wait for some time more before anybody might take steps towards creating one but as it would involve handing over the BTC to someone else, I think there will not be a huge demand for it.
Precisely. That's what's I was going to say. On an exchange, you're basically holding IOU's of a Bitcoin (Which is also why it makes no sense to keep your coins on an exchange, and yet many still do apparently).
Hal was a visionary who was able to forecast the use cases of Bitcoin. However, these bitcoin banks aren't going to be successful until they get their security straightened out.