>>Ever heard the adage "Don't put all your eggs in one basket"?
I'm pretty sure the opposite is also true though, as in "don't split all your eggs among thousands of little baskets." I mean, at some point the overhead of managing all of those wallets must outweigh the risk of having everything in one wallet, right?
They should have written a check that runs periodically to check that the sum of all wallets equals their total BTC according to their ledgers. You have to write that process anyway, it shouldn't matter too much if it has to examine 100 wallets or 10,000 wallets.
I'm pretty sure the opposite is also true though, as in "don't split all your eggs among thousands of little baskets." I mean, at some point the overhead of managing all of those wallets must outweigh the risk of having everything in one wallet, right?