[bpicolo]

> is somehow safer than keeping it on a USB key

I'm not entirely convinced it isn't for some people. USBs can break, keys can be lost. Exchanges can be insured and put a lot more time and energy into keeping things secure.

There have definitely been a few tremendous failures, but there's an argument for keeping it in a trustworthy big exchange, if such a thing exists. Same reason banks hold money - you don't want your house burning down or burglary to pose a problem. If someone stumbles upon your recovery keys it's game over.

[freejulian]

As someone who just had funds removed from their bank account via a skimmed debit card, I trust my bitcoin savings infinitely more than my dollar savings.

To protect myself from fire or flood, I have one of these: https://cryptosteel.com/ in a safe deposit box.

Hardware wallet sits in my desk and is protected by a pin.

Both the 24 security words and hardware wallet are protected by a password.

I can use a different password to access different wallets.

I can back up my account balance by simply saving a copy of the blockchain.

Banks suck. I can't wait for them to die.

[bena]

If your debit card was in a safe deposit box, it would have been just as safe.

And yeah, cryptosteel. What's the difference between that and a post-it? It seems like pretty much a really small movable type. Their site reads like a Franklin Mint commercial.

If bitcoin becomes currency like you hope, you're going to run into the same problems, security versus convenience.

[freejulian]

> If your debit card was in a safe deposit box, it would have been just as safe.

Um, no. When I spend bitcoin, I'm not exposing myself to the risk of someone having complete access to my account. When I use a debit card I am. Huge difference.

> What's the difference between that and a post-it?

Post it notes burn. Also, cryptosteel is only for the security words. It still won't give access to my wallet's private key.

> If bitcoin becomes currency like you hope, you're going to run into the same problems, security versus convenience

First, it already is a currency. Second, the security model of bitcoin is infinitely better than that of a bank.

[bena]

So, it's not spent from your wallet?

So it's a post-it that won't burn.

And if it doesn't give access to your wallet, how does it protect your wallet? If it can be used to gain access to your wallet, then how is writing it down safe?

[freejulian]

> So, it's not spent from your wallet?

Huh? I think this comment shows you don't know what a hardware wallet is. When I spend bitcoin, I spend it using my hardware wallet.

> If it can be used to gain access to your wallet, then how is writing it down safe?

You need a passphrase along with the security words to figure out the private key. Passphrase = something long that I can easily remember.