From: "Luke-Jr" <luke@dashjr.org>
To: bitcoin-development@lists.sourceforge.net
Date: Thu, 16 Jun 2011 14:18:46 -0400
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Subject: Re: [Bitcoin-development] Development priorities
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On Thursday, June 16, 2011 1:59:56 PM Jeff Garzik wrote:
> > 2) Wallet security.
> 
> Agreed, though security professionals (and luke-jr) are already
> pointing out the wallet crypto mainly eliminates a bit of bad PR,
> rather than being a major crime deterrent.
> 
> zooko on IRC had a pretty good suggestion:  introduce a built-in
> facility for air-gapped wallets (multiple wallets), so that loss of
> your everyday transactional wallet does not mean loss of everything.

Even if you do this, a cracker can still simply send your encrypted wallet to 
himself, secure-delete your local one, kill your client, and demand you 
publish your password if you want some portion of your coins back.

I'm not sure there's *any* defense for an insecure PC. Maybe Bitcoin will end 
up forcing people to reconsider their priorities when it comes to security...