> locking your secret info in a drawer with a key gives
> you more security than storing it in the "cloud" because
> it increases the transaction cost if the not ease of
> breaking in.
Maybe. Most people would think that keeping their checkbook in their desk makes them safer, but I don't need your physical checkbook to steal from you via ACH. This is similar to stealing your car without your car key: it's an easy way to steal your car, but it's not the only way. On the other hand, if I use sufficient encryption and store my secrets in the cloud I do get a benefit: when my house burns down and my wooden desk burns up with everything in it, my data in the cloud will still be accessible.
When a large section of the Oakland Hills burned in 1991, a lot of people found out that having their secrets locked up in their house wasn't such a great idea.
> if I want to keep something secret, I do not put on the
> internet, and when I do put something on the interned,
> I do not expect it to remain secret.
Just so long as you don't conclude that by not putting it on the Internet that you've kept it from being stolen. Let's face it: the value of a secret lies in its ability to be used. You might keep your diary a secret by locking it in your desk, but what value is it if released into the wild?
We're really just talking about stealing things that are of value to others, not only to you personally.
/jordan