As I keep posting, bitcoin has far stricter requirements than conventional banking for software security. One bug - including operating system zero-days - and your bitcoin can be irreversibly transferred to another address which is hard to trace to a human and even harder to recover.
It's in the same category as rocketry, nuclear reactors or medical software, not "move fast and break things" startups. There is no room for error.
Entertainingly, they've left the FAQ up:
Q: Are there advantages to bitcoins?
A: Of course! It is secure, anonymous and it removes the middle man resulting in very little transaction fees.
I think the issue is down more to a lack of awareness than a lack of care.
A while ago a site was hacked because they didn't upgrade rails which put out an urgent security update a few day's previously. This is sloppy. There is no excuse.
In many other cases the problem is that people running and building the website are not security experts. They know the fundamentals and learn new things from exploits used elsewhere. However, this knowledge falls short of attackers who relentlessly look for and try to create exploits every day.
I think this is the main issue. Too many hackers, not enough security experts, not enough funds to continuality audit the application and servers running the website.
Yes, but it is a little different than the traditional used car "lemon" information asymmetry problem, since there is an ongoing relationship and the reputation effects are much stronger.
The idea that cryptocurrency "startups" are "financial institutions" is more than a little tenuous. Currently dogecoin is more or less equally legitimate as any other cryptocurrency, that should tell you something about the state of the "industry".
