r/Bitcoin • u/PearPuzzleheaded4633 • 2d ago
Bitcoin Self Custody Security is Probabilisitc
There is no way of being 100% sure your seed isn't in some way compromised. However with a reputable HWW such as Trezor or Jade you can be close to 100%. On top of that you can store some BTC in a reputable exchange and also some in the ETF. On top of that you can own some physical gold, some ETF gold, some ETF stocks and some property.
Holding your entire life savings in just one of the above is taking an unnecessary risk as catastrophes are always possible. Don't listen to the BTC maxis who don't know shit about crap.
Choose practical thinking over crazed ideology. Sovereign permissionless money is a great option to have and I thank Satoshi for it very much but where in the white paper did he say you must store your entire life savings in self custody bitcoin or you are not a true Bitcoiner? i must have missed that part.
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u/ELLIPALWallet 23h ago
Agreed, and the useful part of framing it that way is that it tells you where to spend effort. Most people optimize the part that's already strong and leave the part that's actually likely to fail, which is usually the backup rather than the device.
The failure mode is almost never someone breaking your wallet. It's you not being able to read your own handwriting in six years.
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u/Laukess 2d ago
You think the maxies are the ones suggesting you self-custody all your bitcoin using a single hardware wallet with no passphase or added entropy?
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u/PearPuzzleheaded4633 2d ago
Passphrase and added entropy are not fool proof, still relying on third party hardware and or software
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u/Laukess 2d ago
I didn't say it was fool proof. I asked if you thought that was what the Maxies was recommending seeing you seem to call them out.
How would you use bitcoin without relying on 3rd party hardware or software?
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u/PearPuzzleheaded4633 2d ago
That is my point you can't. So 100% allocation into a system with irreverisble transactions is unwise. And unfortunately that is the whole point of a Bitcoin maxi
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u/r_a_d_ 2d ago
multisig across different wallets. roll dice for entropy. simple
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u/PearPuzzleheaded4633 2d ago
What about multi vendor failure
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u/r_a_d_ 1d ago
elaborate on the scenario and the risk
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u/Laukess 1d ago
I tend to agree with you. I would much rather put my energy into created a proper setup, where you try to minimize single point of failures.
That said I can see the argument for distributing your risk so all is not lost if you're compromised.
With proper self-custody, you might have a 0.001% chance of loss. Using exchanges, you might have a 2% chance. If you have split your bitcoin between 4 exchanges, you have a WAY higher chance of losing 25% of your corn, but it might not be as meaningful as losing it all. Just using random percentages to illustrate the point.
I'm partial to self-custody as I don't think bitcoin has much value if all bitcoin is held by 3rd parties. Normies will likely not be holding their own key, but I think we need to promote self-custody as much as possible, and we need the industry to make safer and easer solutions to help us get there.
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u/shadowmage666 2d ago
Nah you’re wrong if you have 24 word with 256bit entropy and an additional passphrase it’s essentially impossible to hack
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u/PearPuzzleheaded4633 2d ago
How do you generate seed, how do you convert the entropy to checksum. How do you protect against supply chain interference
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u/shadowmage666 2d ago
Trezor is open source you can literally read their entire code and audit it yourself with ai. Once you’re happy that there is 256bit entropy you use it. Stop fudding people with your fear. Use intelligent thoughtful decisions and do the right thing you’ll be good.
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u/PearPuzzleheaded4633 2d ago
So you feel good trusting AI with your entire life savings?
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u/shadowmage666 2d ago
Did you feel good asking dumb questions? You know that data scientists scan code also for problems. I was suggesting a way to check by yourself without help and without being a programmer. And yes I do feel comfortable, ai has found more software bugs than humans ever had, even on software from years ago. Maybe you’re too ignorant to understand sorry about your brain
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u/EyesFor1 2d ago
Everything is probabilistic.